Thirteen tire producers announced in Aug. to raise product prices.
The increment of Shandong Yinbao Tire Group is the highest. The price of its radial tires for domestic sales will increase 5% from Aug. 20.
Prices of Dunlop’s passenger car tires and Shandong Kaixuan Tires’s Meiluda series increased 2%.
Moreover, some distributors disclosed that they have received notifications, saying some tire models of Hengfeng, Santai, Huasheng, and Fangxing will increase 3% in prices.
A new round of price lifting seems has come.
Many industrial insiders attributed the price lifting to stricter supervision by environmental protection and taxation authorities over tire producers.
A large tire producer in Guangrao, Dongying, Shandong province, spent tens of million yuan in buying equipment to deal with VOCs.
The amount of money is quite a fortune for cash-strapped tire producers.
Local government had cut the power supply to the south factory of Fangxing Rubber, which is said to raise price this time.
In the meantime, many tire producers felt the pressure of tax inspection.
A distributor said all the extra expenses and reduced profits will be shown in tire prices.
But higher prices haven’t solve the problems confronted the producers.
An obvious feature showing the tire producers are still capital-thirsty is the wages of their employees, which haven’t increase but are likely to drop.
Industrial insiders said the future of tire products must rely on their quality and brand.
As tire price increases, tire producers have to make efforts to enhance the quality, performance and services, in a bid to survive in market competition.
