The leading tyre distributor Nordic Tyre Group reports strong growth accelerated by Electrical Vehicle transition.
Despite being a relatively unnoticed industry, it is worth taking a closer look at the tyre distribution market with its 15 years of uninterrupted growth and high resilience to macroeconomic challenges. The Nordic Tyre Group has emerged as the largest independent distributor of tyres across the Nordics and the Baltics positioned as the number 1 player in all countries where it operates.
Today the Nordic Tyre Group reports their full-year 2022 numbers with revenues ending at approximately SEK 4bn and EBITA at approximately SEK 400m. With 85% of revenues from the stable aftermarket, the Nordic Tyre Group has consistently delivered growth with an organic revenue CAGR of 14% since 2018 despite periods of crisis and uncertainties.
”Our market is expected to grow at >10% per year over the next 10 years, driven by a shift to more expensive tyres and the increasing number of EVs. EVs require larger and higher performing tyres and wear out the tyres faster resulting in double tyre expenses for EVs compared to traditional cars.” says Patrick Bergander, CEO of the Nordic Tyre Group.
Patrick Bergander, CEO of NTG
“You could safely say we are at the right side of the EV trend”
Independent wholesalers stand for approximately 42% of the revenues in the market and are outgrowing the total market due to their ability to keep the required number of products in stock, facilitate fast and precise delivery and offer numerous brands.
”Our customers, consisting of almost 10,000 tyre workshops and retailers, have an increasingly difficult market to manage. Today they need to offer more than double the number of products to serve the bulk of the market compared to ten years ago. They partner with us to handle this complexity. We offer products for multiple manufacturers as required with high delivery precision”, says Torsten Pettersson, Chief Procurement Officer of the Nordic Tyre Group.
The Nordic Tyre Group has the ability and capacity to manage numerous products from multiple manufacturers, serving its vast customer base across the Nordic/Baltic region. The company’s unique technology-based business model sets it apart from its peers. It is a proprietary digital secret sauce that has helped the Nordic Tyre Group outperform peers by automating all processes from order handling to logistics. The platform and its processes has also facilitated easy and fast integration of acquired companies.
“The Nordic Tyre Group started out with a strong technical platform developed over 15 years which created a unique starting point for consolidating the Nordics and the Baltics markets since 2019. Our technical platform and scale create advantages for us. We have still a significant organic growth runway as the leading player with scale in a consolidating industry. In addition, M&A will remain on top of our agenda”, says Patrick Bergander, CEO of the Nordic Tyre Group.
Published: Mar 16 2023