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<strong>Fo</strong>cus on <strong>Tyre</strong> Imports • 9 <strong>IM</strong>PORTS – HAVE THE TABLES TURNED? Close on 50% of the current tyre consumption in South Africa is made up of imported makes, a staggering statistic that is deeply indicative of the rising popularity of foreign made tyres over the last few years. Price is the primary reason for the rise in import figures, with low cost producers from emerging countries continuing to target our market with products that are often of questionable quality; availability is another, especially as it is not economically viable for local tyre plants to comprehensively cater to the diverse needs of the market by way of application and tyre size. So, not all imports entering our market potentially pose a risk to the consumer. The local four manufacturers – Bridgestone, Goodyear, Apollo and Continental – are all compelled to import tyres on a frequent basis to supplement their product range. Plus, <strong>SA</strong>’s status as a global player demands that the <strong>SA</strong> consumer has access to the world’s leading tyre brands from Europe, U<strong>SA</strong>, and the Far East. With that said, the rise of ‘dubious’ operators who are dumping low cost tyres in the market, whilst also attempting to evade paying the required import duties, is posing a significant threat to the local manufacturing industry as well as to the reputable importers, not to mention the end user. <strong>Fo</strong>r over a decade, local tyre companies have been campaigning for playing fields to be levelled, something which they claim can only be achieved by clamping down on questionable low cost products and the illicit practices that accompany them. This they have done by eliciting assistance from relevant government bodies such as the DTI (Department of Trade and Industry), the NRCS (National Regulator for Compulsory Specifications) and ITAC (International Trade Administration Commission for South Africa). And according to the import segment of the market, their efforts have not been in vain. Local representatives of some of the world’s leading tyre makers are alleging that although price may have once played a significant role in securing a presence for foreign tyres in this market, this is no longer case. They further suggest that the tables have turned with respect to the market dynamic, so much so, that imported tyres are now receiving the ‘short end of the stick’, so to speak. “I never thought I’d see the day when imported passenger tyres would sell for more than some locally produced makes, but this is precisely what is taking place,” said Charl de Villiers, MD of <strong>Tyre</strong>cor. I continuously circulate amongst dealers comparing pricing from local and imported brands for the various segments, and this new development is alarming.” His concerns are being echoed by opposition companies such as Tubestone and CFP <strong>Tyre</strong>s. “It is becoming increasingly more difficult for us to compete against the local makes,” they confirmed. But Julio Fava, Executive Manager Export, OE and Agri for Bridgestone <strong>SA</strong> disagreed: “Local products remain more expensive than imports, it’s only the differential that has reduced.” “We are extremely surprised to hear of these rumours,” echoed Riaz Haffejee, CEO, Apollo <strong>Tyre</strong>s <strong>SA</strong>, “since this is contrary to our experience.” The price issue aside, importers are faced with their own unique set of trading challenges. Currently in the spotlight is the sudden withdrawal of the agricultural rebate applicable to tyres entering the country under the Tariff Heading 4011.61 This rebate was apparently set in place some years ago to assist the agricultural sector that is compelled to import herringbone
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