NTDA: Increased Costs Cause Chinese Tyre Price Increases

Significantly higher transportation costs for tyres from China will increase the cost of brands from this market by up to 5 per cent over the coming months, according to the NTDA. Commenting on recent increases in container rates from the Far East NTDA Director Richard Edy said: “Container rates have increased by up to $300 in recent weeks and the Chinese Governments decision to reduce export subsidies by 8 per cent in July will put added pressure on transportation costs which could have a marked effect on the price of Brands from China.

“Tyre production in China has increased phenomenally over recent years and many of the worlds leading tyre brands are investing heavily in production facilities in China, however the importation of brands from China has provided the UK Tyre Trade with very competitively priced products which will now be under pressure from increased transportation costs.

“Transport costs have been creeping up over the past few years however the recently announced surge in container rates will filter through very quickly and wholesale prices to the trade will have to reflect these increases,” concluded Edy.

Many members of the NTDA’s powerful Tyre Wholesalers Group, which represents all the major tyre wholesalers operating the UK market, are involved in this market and they report that prices for brands across the range from China will be under pressure in the coming few months.