Tire Wholesalers

The 1,130 tire merchant wholesalers in the US primarily sell new and used tires and tubes for passenger and commercial vehicles. Firms may also sell complementary products such as wheels and other automotive parts. Customers include independent tire dealers, auto repair shops, auto parts stores, big box retailers and wholesale clubs, hardware stores and other distributors. Tire wholesalers also supply replacement tires to dealers of motorcycles and ATVs, as well as agricultural, construction, and industrial vehicles. This profile excludes tire manufacturers’ sales branches.

Complex Inventory Management

The number of unique sizes and tiers of quality and price are expanding as manufacturers look to meet market demand.

Direct Sales by Tire Manufacturers

Tire manufacturers are opening distribution centers in efforts to supply automobile dealerships, auto parts stores, and other large customers of tire wholesalers.

Jul 23, 2026 - Independent Repair Boom Reshapes the Tire Distribution Market

• The shift in routine vehicle maintenance from dealerships to independent repair shops is creating new opportunities for tire wholesalers as more replacement work flows through the independent aftermarket. According to market researcher Ducker Carlisle, dealership service transactions fell 13% YOY in 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 alternatives. As independent repair shops handle more tire replacements and related maintenance, wholesalers that provide broad product selection, reliable inventory, and same-day or next-day delivery are well positioned to benefit from higher demand across the independent repair market. Strong relationships with independent dealers and service centers may become an increasingly important competitive advantage.
• Tire wholesale 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.

Industry size & Structure

A typical tire merchant wholesaler operates out of 2 locations, employs fewer than 38 workers, and generates about $51.3 million annually.

• The tire merchant wholesaling industry consists of about 1,130 companies which employ about 43,380 workers and generates about $58 billion annually.
• Customer industries include auto repair shops, auto parts stores, big box stores and wholesale clubs, hardware stores, and dealers of agricultural, construction and commercial equipment dealers.
• The industry is concentrated with the top 50 firms accounting for 80% of industry revenue.
• Large companies that distribute passenger vehicle tires include American Tire Distributors (ATD), Tire Rack, and Tire Group International.
• Large firms that distribute industrial and specialty tires include Gallagher Tire and Monster Tires. The industry is predominately comprised of privately-owned companies.