Domestic brand tire prices have entered an all-round rise
The reporter learned from Auto Parts City and some auto parts stores that major brand tire dealers have received notifications from manufacturers regarding tire price increases since last month, and the rate of increase has ranged from tens to hundreds of yuan.
“Our average factory price has risen by about 5%, but it has not had a significant impact on market sales.†Hu Linping, manager of International Trade Department of Hangzhou Zhongce Rubber Co., Ltd., which produces tires such as Chaoyang and Lucky, said in an interview. According to the staff of a tire store in Case Auto Parts City, the price of Yokohama tires was notified at the end of June, and the mid-to-high end of the brand's tires rose by around 50 yuan each. On the other hand, the price of high-end tires is smaller than that of low-end tires. Mr. Du, the head of Goodyear's store business, said that although Goodyear has already increased its price according to the requirements of the manufacturers, it only has a margin of RMB 10-20, which can basically be regarded as normal price fluctuations and has no impact on actual sales. Brand dealers such as Michelin, Warrior, German horse brand and Bridgestone also confirmed to the reporter the news of tire prices.
Xu Chunhua, vice president of the China Rubber Industry Association, said in an interview that the rise in rubber prices this year is the main reason for the rise in tire prices. "The price of tire raw materials this year will be 40% higher than last year, and tire prices will also increase by 20%." Xu Chunhua expects.
With the growth of raw materials, the competition among tire companies will also intensify. According to Park Hong-kyun, vice president of Nexans Tire Co., Ltd. in Qingdao, although the tire market will grow with the growth of the automotive market in the long term, the price of raw materials fluctuates. Under the background of the impact of multinational companies and the growing strength of local tire companies, the competition among tire companies will be even fiercer.
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