B2 – Upper Intermediate
The tire business is characterized by slow change and growth and low margins. Fortunately, electric vehicles (EVs) might be a gamechanger for the tire industry in the future.
Tire companies are looking forward to earning 50% more. They are also expecting more EV users to change their tires 20% more often.
Watch the entire video below about why tire companies love EVs.
Vocabulary Questions:
- Define the phrase “regenerative braking”. “EVs, however, deliver about two thirds of their energy to the wheels, more if there are energy recovery technologies like regenerative braking.”? Use it in a sentence.
- What does the term “differentiated product” mean in the sentence “One of the main ways that tire companies compete with each other is by creating a differentiated product.”? Use it in a sentence.
- What does the phrase “compound annual rate” mean? “Analytics form AlixPartners says the total market for EV tires is expected to grow at a 33% compound annual rate through 2031.”? Use it in a sentence.
Discussion Questions:
- What is the video all about?
- How do tire manufacturers view tires as commodities in the market?
- From a business perspective, should tire companies consider deliberately reducing the lifespan of tires to increase profitability?
- How do electric vehicles (EVs) impact the tire industry?
- As tire companies benefit from electric vehicles, which other industries do you think might be affected by this trend?