Exploding costs – Yokohama OHT announces price increases

Yokohama Off-Highway Tires has announced further price increases for its brands in Europe. These will take effect next month and see prices for Alliance and Galaxy tyres rise by around five per cent. The manufacturer says this increase comes at a time when the costs of raw materials and freight rates “continue to rise at a dramatic pace on the global commodity markets.”

Indeed, the cost of some of the raw materials that Yokohama OHT uses have risen by 30 per cent, a rate of increase the tyre maker considers “alarming” and a cause for concern that calls for “further actions few months down the line.”

The latest price increase is the third this year and follows the price rises of 4.5 to 5.5 per cent implemented from April 2021 and a similar increase from January. Yokohama OHT says the latest price adjustment, which applies to products from all plants, is “fairly moderate” and reflects its absorption of most additional costs.

“Customers have received the new price lists at the start of June 2021; the price increase will take effect from 1 July 2021,” says Koen van Gemert, head of finance – Europe, at Yokohama Off-Highway Tires.