Tire Dealers NAICS 441340

Jul 2, 2026 - Parts Demand Shifts As Consumers Increasingly Drop Dealerships Service Departments

• The shift in routine vehicle maintenance from dealerships to independent repair shops is also benefiting tire dealers, as more consumers turn to independent service providers for replacement tires and related maintenance. According to market researcher Ducker Carlisle, dealership service transactions fell 13% between January 2025 and January 2026, the steepest decline in an industry where overall service transactions dropped 11%, as independent repairers captured a larger share of maintenance work. Automotive News reports that dealerships now charge an average of $521 per service visit, compared with $271 at repair chains, encouraging more drivers to seek lower-cost alternatives. That migration is creating additional opportunities for tire dealers to capture business tied to tire replacement, alignments, rotations, balancing, and other maintenance services. As competition intensifies, tire dealers that offer competitive pricing, fast service, and convenient scheduling are well positioned to attract customers who are looking beyond the dealership for ongoing vehicle care.
• Tire inventories are shrinking in Q1 2026 (down 3.1% per the Census Bureau) as dealers and distributors struggle to replenish stock amid ongoing supply-chain pressures and steady replacement-tire demand. The market continues to feel the effects of pandemic-era production disruptions and raw-material constraints, which reduced manufacturing flexibility and limited the flow of inventory into wholesale channels. At the same time, consumers holding onto older vehicles longer are driving stronger demand for replacement tires, causing retailers and service centers to buy aggressively and quickly absorb available inventory. Tire manufacturers have also maintained tighter production and inventory strategies rather than rebuilding large stockpiles, limiting surplus supply across the market. Industry uncertainty tied to tariffs, shipping volatility, uneven EV demand, and the US war in Iran are all contributing to the inventory headaches facing the tire wholesale and retail industries.

• Major tire importers are pursuing refunds after the Supreme Court ruled in February that Trump lacked authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). At least 15 tire-related lawsuits have been filed, part of roughly 2,500 similar complaints from importers across industries. Customs and Border Protection, which collected $166 billion across 53 million shipments, says processing refunds manually would require 4.4 million man-hours, but is working to build a streamlined refund system within 45 days. Companies including Hankook, Yokohama, Goodyear, and Toyo Tire are among those with cases pending. In place of the invalidated IEEPA tariffs, Trump has implemented a temporary global 10% tariff under a different law, though this too faces legal challenges from 24 states. Yokohama noted that beyond the direct financial hit, the unpredictable on-and-off nature of tariff implementation caused significant market disruption that manufacturers are still working through.
• Last-mile delivery tires are emerging as a strong growth opportunity for tire dealers and wholesalers as e-commerce continues to expand. Demand is increasing for tires engineered to handle frequent stops, curb impacts, heavy payloads and constant urban use. North American last-mile delivery tire demand is projected to exceed $450 million in 2025 and continue growing through the end of the decade. Dealers that can guide fleets on cost-per-mile performance, durability and uptime - rather than just price - are well positioned to win business. The shift toward electric delivery vans is also driving interest in EV-specific tires with higher load ratings and low rolling resistance. For wholesalers, the segment opens opportunities beyond national accounts, particularly among regional couriers, local delivery fleets and owner-operators. Overall, last-mile delivery represents a resilient, service-driven market with long-term profit potential for the tire channel.