Reasons for the Increase of Tyre Prices Around the Globe

 

The price of the tires has been increased again and again by the tire manufacturers in the last few years. There are a lot of reasons behind the price increase of the tires, such as suppliers to be increasing the price as the demand for the tires from China is high. Most of the manufacturers are claiming that the raw material has been expensive and the current crisis has disturbed the supply chain management all over the globe and that’s the main reason that the supply of tires is short. As petroleum prices have increased globally which is having an indirect and direct effect on the cost of transporting of the goods and the raw material such as black carbon, rubber and steel has also been skyrocketing in recent times.

Freight in Current Times

Freight has been unstable for a long time now and the consumer has to bear its cost directly as the tire prices have already increased and freight in current times is quadrupled, so the importer is getting everything expensive and is selling wholesalers at a higher price and the consumer gets the product in the end and all the burden is on the consumer.

Solution

The main manufacturing of tires is done in China, India, Thailand, Indonesia, USA and Hong Kong. Also, tires being exported to the USA have an anti-dumping duty which results in the price increase again. The best solution to counter this situation is that governments should intervene and regulate the tire industry by stabilizing the prices which will benefit everyone from export to the importer to end-user.

The tire is a very important part of the vehicle and there is no alternative to rubber tires, so the demand is only going to increase and in the current situation, the best decision is to continue the importing of tires and survive this wave.

 

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