how does using smaller tyres on a car improve it’s range/fuel efficiency?

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From my theoretical understanding shouldn’t larger tyres give you more range? My reasoning being that larger tyres = more distance travelled in a single rotation.

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Larger tires travel more distance over a single rotation but they require more force to turn. In a perfect world with no friction it equals out. Larger tires also have more rotational inertia so you need to put more energy into them to start them spinning and to slow down and are physically larger which increases air resistance

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