The Tyre Importers Association of South Africa (TIASA), is warning that the cost of tyres could increase by up to 41% if the four large domestic tyre producers, Continental, Bridgestone, Goodyear, and Sumitomo – collectively known as the SA Tyre Manufacturers Conference (SATMC) – are successful in their duty application.
TIASA is opposing SATMC’s application to the International Trade Administration Commission (ITAC) to impose additional duties of between 8 and 69% on passenger, taxi, bus and truck vehicle tyres imported from China.
The imposition of duties is expected to have a material impact on the price of tyres, not only for passenger vehicles, but also for trucks and for the vast network of taxis and buses that transport citizens across the length and breadth of the country daily. Tyres are the third biggest cost driver in transport, after wages and fuel.
If the application is successful, the taxi industry will be hit hardest, with the cost of taxi tyres set to increase by 41%. Consumers will also be hit hard, with small passenger vehicle tyres expected to increase by 38-40%; and truck and bus tyres by an average of 17%.
For more on this breaking story, see our August/September issue of SA TREADS.