Tires: Subject to inflation

We’re into December, and many Canadians have already swapped out their summer or all-season tires for winter tires before the arrival of the snow and ice.

And we don’t tread lightly with our stats on tires! Here are some numbers to give you a better grip on understanding the industries and prices.

If you need to get your tires swapped or serviced, or need to buy new rubber, you’ve probably gotten a price sticker shock. Prices for passenger vehicle parts, accessories and supplies increased by 8.6% in October 2022 on a year-over-year basis.

A look at seasonally unadjusted sales numbers shows us that Canadians buy a lot of tires! In the second quarter (April to June) of 2022, new tire sales reached over $2.3 billion nationwide.

Since we started tracking sales of new tires in 1998, the highest sales of the year were recorded in the fourth quarter (October to December), likely reflecting that many Canadians buy winter tires during those months.

And there’s a lot more rubber hitting the road, so to speak. We recently told you about how Canadians are driving more, with a decrease in travel restrictions related to the COVID-19 pandemic.

Alongside this increase in driving is an increase in orders for tires. Canadian tire manufacturers sold and shipped $295.5 million worth of product in September 2022, compared with $251.1 million a year earlier and $260.8 million in September 2020. During that same period, manufacturers’ estimated values (at month’s end) for raw materials, fuel, supplies and components more than doubled (153.3%) to $142.9 million—indications of a rise in production costs.

At the factory level, price paid for tires manufactured in Canada rose by 8.1% in September 2022 on a year-over-year basis, on the heels of the 10.3% yearly increase observed in August 2022. These recent increases follow years of relatively small price stretches in either direction.

While some tires were manufactured here at home, some came from elsewhere. Canada imported nearly $1.3 billion worth of tires in the third quarter (July to September) of 2022, on a seasonally adjusted customs basis, and exported nearly $560 million worth. Values of imports were up by 22.0% and exports were down by 2.5%, compared with the same quarter a year earlier.

Depending on where you live, you must have winter tires on your vehicle during the colder months.

Winter tires are mandatory province-wide in Quebec from December 1 to March 15. Winter tires or tire chains are mandatory on certain routes outside the Lower Mainland and southeastern Vancouver Island in British Columbia from October 1 to April 30.

However, all provinces and territories recommend winter tires. Transport Canada has some tips on their use, and on safe winter driving overall.

So keep a safe distance, reduce your speed and we’ll see you in the spring when it’s time to change those tires again!