The sale of new cars in the UK is in drastic decline. New registrations are down by nearly 40% compared with a year ago. Perversely this trend is adding to demand for tyres for the replacement market, as manifested by the increase in the on-line sale of tyres by etyres.
The etyres low cost business model is delivering a sharp rise in turnover as drivers shun the high prices of tyres that are still being charged by leading tyre depots. The knock on effect of this growth is seen in the increased rate of new branch opening, with upwards of thirty are now planned for 2009. These will enable the company to sell cheaper tyres to an ever-widening customer base right across the UK.
This rapid expansion increases etyres requirement for new vans which is in sharp contrast to the national trend. The economic downturn has also caused a sharp decline in van registrations. The Society of Motor Manufacturers and Traders reported that new van registrations have declined by almost the same percentage as new cars and now stands at just over 300,000 for the rolling year.