Despite the recent recession, The Ultra High Performance (UHP) tyres market is buoyant in many world markets, although in the UK market, there is a continuing trend towards UHP budget tyres. Whilst this may seem like a contradiction in terms, in fact UHP budget tyres appear to be a concept that is gaining in popularity. Indeed new brands of UHP budget tyres are announced with increasing regularity and in the UK, cheaper tyres seem to be a popular choice across all price segments and this trend looks set to continue.
Sales figures for UHP budget tyres from leading tyre retailers show that although current demand is below the levels seen for leading brands, nevertheless lower-priced UHP tyres are frequently being recommended for customers enquiring about W-, Y- or Z- rated tyres. Mid range prices for UHP budget tyres are generally around 55% less than prices for leading brands, so the continuing introduction of new brands of UHP budget tyres is likely to prove popular amongst UK motorists seeking performance at a price.
Likewise, because competition is fierce at the lower end of the price spectrum for UHP budget tyres, the UK purchaser of UHP budget tyres will gain some protection against the generally rising prices seen in the market as a whole. However there is likely to be a practical limit to the size of this market and it is expected that some suppliers of UHP budget tyres will want to move towards the mid-range price segment, perhaps by introducing better quality products, although it is not clear how premium brands may react to this.
On the other hand, with economic markets generally returning to growth, demand for UHP budget tyres may not be expected to increase amongst those who would normally prefer to purchase premium brands. This might mean that those suppliers planning to move up-market away from UHP budget tyres will have less room to manouvre, because increased sales of premium brands may mean that higher volume sales may actually tend to drive prices down towards the medium price band.
On top of this, there seems to be no lessening of interest in high performance amongst motorists and of course vehicle manufacturers will continue to introduce new models to satisfy that demand. As more and more of these vehicles appear in the used car sector, it is possible that UHP budget tyres will be a popular choice, both for retailers placing such vehicles on their forecourts and with motorists wishing to replace their worn original equipment tyres with UHP budget tyres.