The automotive battery sector has experienced substantial growth and innovation over the past decade, driven by the rising demand for electric vehicles (EVs), hybrids, and vehicles equipped with advanced electrical systems. This shift presents both challenges and opportunities for tire dealers, who can benefit from offering battery-related services and staying abreast of the latest technological advancements.
According to MTD’s 2024 Tire Dealer Automotive Service Study, 83% of tire dealers surveyed already offer battery and electrical services, marking a positive first step. However, to remain competitive, it’s crucial for these businesses to continue updating their knowledge of evolving trends, technologies, and technician training.
Industry experts from major battery manufacturers, including Clarios, DEKA Batteries, Odyssey Battery, and Stryten Energy, have shared insights into the key developments shaping the market. The transition from traditional lead-acid batteries to more advanced technologies like Absorbent Glass Mat (AGM) and lithium-ion batteries is a significant trend, driven by the increasing adoption of start-stop technology and vehicle electrification.
Key Trends in Battery Technology
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Start-Stop Technology and AGM Batteries: Over 50% of vehicles produced in North America now feature start-stop technology, which requires higher-performance batteries like AGM. These batteries are engineered to support the increased cycling demands of start-stop vehicles, offering benefits such as high-cycle life, cranking power, and deep-cycle reserve capacity.
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Electrification and Multiple Battery Systems: EVs and hybrids utilize both high-voltage lithium batteries and low-voltage lead batteries. The lead battery serves as a crucial safety backup, powering critical safety functions if the main lithium pack fails. DEKA Batteries’ Intimidator with EHP (Electric Hybrid Performance) is an example of lead battery technology designed to support EV and hybrid vehicles.
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Enhanced Flooded Batteries (EFB) and AGM: These battery technologies have been developed to handle the increased cycling demands of modern vehicles. EFB and AGM batteries offer improved performance, safety, and durability compared to traditional lead-acid batteries.
Marketing and Sales Best Practices
To influence battery sales at the retail level, industry experts recommend the following strategies:
- Educate Customers: Provide clear information about the benefits of advanced battery technologies, including improved performance, sustainability, and long-term cost savings.
- Highlight Sustainability: Emphasize the recyclability of lead batteries and the environmental benefits of choosing sustainable battery options.
- Demonstrate Value: Show customers the value proposition of premium battery products, such as AGM and EFB, particularly for vehicles with advanced electrical systems.
- Use Data-Driven Insights: Partner with battery manufacturers’ category management services to optimize inventory and ensure the right battery stock for customer needs.
Emerging Niches for Tire Dealers
- AGM and EFB Batteries: Dealers should stock and promote AGM and EFB batteries, which are increasingly becoming standard for vehicles with start-stop systems and high electrical demands.
- Battery Maintenance and Testing: Offering battery maintenance and testing services can help build customer trust and ensure optimal battery performance.
- Lithium Starting Batteries: While still in development, lithium starting batteries for cars may present future opportunities. Dealers can prepare by monitoring advancements in this area.
By staying informed about these trends and adapting their services and product offerings accordingly, tire dealers can not only meet the evolving needs of their customers but also capitalize on the growing demand for advanced battery technologies.
