The Tyre Importers Association of South Africa (TIASA) has warned that the price of tyres might improve by up to 41% if the 4 massive home tyre producers – Continental, Bridgestone, Goodyear, and Sumitomo – are profitable of their responsibility software on car tyres.
The producers are collectively often called the SA Tyre Manufacturers Conference (SATMC).
TIASA was briefing the media on Tuesday on the affect of the transport of products, taxi fares and different industries if new duties on car tyres are imposed.
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It stated the price of transport and items will surge if new duties on car tyres are imposed.
“The taxi industry will be hit hardest, with taxi tyres increasing by 41%; small passenger vehicle tyres by 38-40%; and truck and bus tyres by 17%. Tyres are the third biggest cost driver in transport, after wages and fuel and it will impact cost of transport and road safety significantly.”
TIASA says it is going to oppose SATMC’s software to the International Trade Administration Commission (ITAC) to impose extra duties of between 8% and 69% on passenger, taxi, bus and truck tyres imported from China.
Charl de Villiers, Chairperson of TIASA believes that SATMC’s software for duties is absurd, on condition that the candidates, in accordance to their very own tariffs, collectively import 80% of the number of tyres that they promote.
“The unhappy actuality is that whereas this software is mindless in any respect, it is going to, if profitable, add a big price burden to motorists, taxi and bus operators and trucking and logistics firms.
“Even more concerning is that vehicle owners, when faced with such dramatic cost increases, may trade down to second hand or illicit tyres, or simply delay replacing their tyres, which places every road user at greater risk of accidents,” De Villiers stated.
Spokesperson for the National Taxi Alliance, Theo Malele, says its message to authorities is that they need to be taking a look at each manner doable to arrest the surging price of transport.
“We already estimate that taxi fares need to rise by up to 30% due to rampant petrol price increases. If tyres go up by 41%, it will have a devastating impact on our sector, and on commuters who rely on us to transport them to and from work. Government must intervene as a matter of urgency to reject SATMC’s application for these duties immediately.”
SATMC’s 4 members have been just lately investigated for worth-fixing by the Competition Commission. The Commission discovered that the 4 firms had a collusive relationship from 1999 till no less than 2007.
While Bridgestone utilized for, and was granted, leniency in 2009, and Dunlop has settled, Goodyear and Continental nonetheless face closing adjudication of the matter in entrance of the Competition Tribunal.
According to the June 2022 report from the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), somebody working 21 days a month spends 34.5% of whole wages on transport, whereas for somebody working 15 days a month, transport accounts for 55.25% of their wages.
Gavin Kelly, CEO of the Road Freight Association (RFA), says based mostly on the projected 17% improve within the landed price of truck tyres, they estimate that this may translate into an 6% improve to operators.
“Transport companies already cannot afford the ever-rising operating and fuel costs, and so an increase in the cost of tyres could become the final nail in the coffin for many operators, leading to a collapse in the country’s critical road freight logistics sector.”
TIASA says the rise in the price of tyres won’t have an effect on the aviation trade or price of air journey as the rise solely impacts the street, freight and shopper transport industries.
Tyres are an enormous price issue for street transporters in South Africa, and any improve in prices could have a knock-on impact, as over 80% of SA’s meals, medicines, gas and lots of different items are transported by street, so rising prices have an effect on each single merchandise transported to, and throughout South Africa.
The shift from street to rail has significantly stalled over the previous 18 months, because the nation’s rail infrastructure has been vandalised, working capacity has deteriorated and the out there rail community has shrunk.
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