Looming tyre price hikes to hit taxi, truck industry hardest
The Tyre Importers Association of South Africa (TIASA) has warned of tough times ahead for South African motorists, as well as the taxi, bus and trucking sectors should the four largest domestic tyre producers be successful in their duty application.
Continental, Bridgestone, Goodyear, and Sumitomo, which are collectively known as the SA Tyre Manufacturers Conference, have asked the International Trade Administration Commission (ITAC) to impose additional duties of between 8 and 69% on tyres imported from China.
This could push the price of tyres up by 41%.
TIASA, together with the National Taxi Alliance and the Road Freight Association, briefed the media on the impact of the increase on Tuesday.
Chairperson Charl de Villiers said they will oppose the application.
"The sad reality is that while this application makes no sense at all. It will, if successful, add a significant cost burden to motorists, taxi and bus operators and trucking and logistics companies. 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 accident.”
Spokesperson for the National Taxi Alliance Theo Malele has called on the government to intervene.
“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,” said Malele.
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