Significant increase in tire prices this fall
New vehicles have been hit by fairly significant price increases in recent months. Not only does limited production eliminate rebates and any possibility of negotiation, but manufacturers also face a significant increase in the cost of materials, whether for thermal or electric vehicles.
The same goes with tires, the manufacturer Yokohama just announced a tire price hike passenger cars, vans and commercial vehicles. The manufacturer justifies this decision in order to face increases in the price of raw materials and labour.
Winter tires spared
According to Yokohama, the general increase, which would expect up to 7% in some cases, will affect all-season tire models for cars and light trucks. Fortunately, the manufacturer has announced that winter tires will be spared for the time being.
“It is clear that the economic challenges brought on by the COVID crisis continue to send shockwaves through all industries,” said Diana Colosimo, Director of Brand Development for Yokohama Tires. These latest price increases reflect the impact of volatile market dynamics that were hardly predictable during previous price adjustments, most notably the continued rise in the cost of raw materials and energy.”
Yokohama is not reassuring for the future by mentioning that with an upward movement in interest rates, economic analysts around the world are predicting that the global transportation and supply chain crises will not resolve soon, and that the economic challenges are expected to continue well beyond 2023.
It’s a safe bet that other brands will announce similar increases in the coming weeks.
Conclusion
Reduced inventory, problem of availability, increase in purchase prices, maintenance and ownership costs, the automobile has not had it easy in recent months and there is no simple solution.
