Autofit Blog
Tyre prices Due to Rise
Posted on 24th March 2011 by Ingrid Ward
Over the last few months our tyre suppliers have been increasing their prices to us on a very regular basis and this, unfortunately, has been reflected in the price of tyres to you,our customers. I think a brief explanation of the reasons for these price rises would be of interest to you all. The manufacturers have to decide, well in advance of need, which tyres to produce and how many. Europe has suffered two extreme winters which has seen a new winter tyre market develope in the UK, as a result there was a real shortage of winter tyres and the brokers just kept increasing the prices until the stock ranout!!! There is now a knock on effect for the supply of summer tyres as their production has been decreased to leave more production time for next years winter tyres. However supply and demand is only one factor in the price increases we are experiencing, the other factor is the rising cost of the raw materials; rubber and oil. Rubber prices increased by a massive jump of %65 last year and this needs to be reflected in due course in prices to the consumer. Oil prices are subject not only to natural causes but also political so the outlook for oil prices is bleak. Oil is used in the manufacturing process, also the increased cost of petrol and diesel affects the transportation costs for the wholesalers. I know this is a slightly depressing blog but I hope it helps explain the price increases we will all experience in the coming few months.We will, of course,endevour to keep these increases to a minimum. (this blog is loosely based on an article supplied by the NTDA and Stapletons)Leave a Reply
The opinions expressed herein are the personal opinion of the author and are not intended as statements of fact and do not represent the view of Autofit (Ipswich) Ltd. in any way
