Chinese Tyre Manufacturers Cut Gate Prices

A number of Chinese tyre factories have lowered their gate prices in response to the recent easing of raw material costs. Aeolus Tyres, for example, is apparently the first tyre maker to openly do so, and says it is aiming to send a clear signal that as a “runner-up among major tyre brands,” it is taking the lead in terms of pricing. However, as is the case with most Chinese tyre purchases, the fact that transactions are calculated in US dollars means pound prices are in fact higher than they were 12 months ago. Industry sources have also linked the Triangle and Infinity brands with factory gate price cuts that are also negated by the weak pound. While the euro has been fairing better against the dollar, a similar effect is understood to place taking place on the continent.

Speaking on behalf of Aeolus Tyres in Europe, Heuver Tyrewholesale’s Bertus Heuver commented: “Aeolus is one of China’s largest tyre manufacturers. Identifying trends and developing tyres in response to those trends is their core business. This is partly the basis of their success in Europe and why this runner-up has quickly become a reliable and attractive alternative to name brands… Aeolus sold more than 250,000 new tyres in Europe in 2008. We aim to conquer a market share in the most important segments in Europe of at least 3 per cent in the standard sizes…We expect that many business owners will consider Aeolus when making their decisions due to its combination of favourable prices, selection and quality.”

The success of Aeolus Tyres in Europe has prompted Heuver Tyrewholesale to establish a special Aeolus Team under the direction of Bert van ‘t Holt (business unit manager). This enables customers to address their questions about Aeolus truck, trailer and EM tyres directly to the team. Orders of four tyres or more are delivered free of charge to residences in the Benelux and Germany. “This underscores our goals of ‘providing a personal business approach and acting as a business partner’ together with Aeolus’ strategy, thereby enabling us to deliver the best of both worlds,” Heuver added.

Aeolus Tyre Co., Ltd. produces 2.7 million tyres a year. Heuver Tyrewholesale imports a wide selection of tyres for trucks, light trucks, flatbed trailers, trailers, hauling and steering shafts and for virtually every type of earthmoving machine. The company reportedly sold a total of 250,000 tyres across Europe in 2008.