Nokian pins North America growth on winter, all-season tires

Nokia, Finland – Nokian Tyres aims to double revenues in North America over a mid-term [three-to-five year] period, mainly through increased sales of snow and all-season tires. 

To deliver that goal, the Finnish group has targeted volume sales of 4 million units in mid-term, up from 2 million presently.

In a 7 Dec statement, Nokian said it would build on its ‘strong customer relationship’ in snow-belt areas such as Canada and northern US, "to secure a share of the winter market."

“We will maintain our market leader position in Canada and increase our in-store share in the US,” said Anna Hyvönen, EVP, Nordics, Vianor and North America, during Nokian's recent capital markets day.

To help increase volumes, Nokian is to expand its all-season product offerings and distribution network in the region.

Having already introduced new tires for the North American market, the manufacturer aims to expand its all-season range in premium (A segment) and mid-tiers (high B segment).

Output from Nokian's Dayton, Ohio factory is "the key, when it comes to the North American all-season products,” said Hyvönen, citing the light truck market as a particular growth-engine. 

“The light truck vehicle count is growing approximately 5% per year. It is the most interesting segment for us”, she commented.

In terms of distribution, the official said Nokian’s market penetration in Canada is higher than in the US, with over 1,000 point-of-sale locations. 

“In Canada, the aim is to capture the growth potential in Ontario and in Montreal area and grow the winter market share,” she stated.

In the US, Nokian has close to 5,000 point-of-sale units and is expanding its footprint with wholesale partners and with large retailers.

“To support growth in all-season products, we will expand, especially in south and west, and develop our own distribution network further in the northeast,” said Hyvönen.

The company will also focus on enhanced forward planning with clients and delivering directly from the factory to key customers.