By Neelam Rahim

Industry bodies warn that if duties are implemented, the price of tyres could increase by between 17% and 41%.

The Tyre Importers Association of South Africa (Tiasa) is opposing the SA Tyre Manufacturers Conference’s (SATMC) International Trade Administration Commission (Itac) application for additional duties to be imposed on tyres imported from China, saying that doing so will increase cost pressures on motorists, commuters and the transport sector.

In discussion with Radio Islam International is the CEO of the Road Freight Association, Gavin Kelly. 

According to Gavin, one of the issues raised in that press conference, and we have been asking over the last couple of weeks, is the exact reason for this protectionism action being brought out. Given that we don’t manufacture enough tires in this country, more than 80% of them are imported into South Africa.

He says the real question is, why you would want to bring this action into play when we can get reasonably well-priced and good-quality tyres imported into the country.

He added that there isn’t much motivation on the table for these taxes.

According to Gavin, going to the public is to make them aware and chat with various groupings to ensure all the facts are on the table. We need to know precisely what the effect will be on the industry and then have proper engagements with those who want to bring this into play. 

He says that research and all of that have to happen before this becomes a reality.

Gavin tells Radio Islam what he has seen in the tyres related to freight and the various sizes of tracks: that those prices will increase around 17%, and that would have an impact of about 6% for the large vehicles that use 30 tyres at a time. And about three and a half per cent for the smaller tyres in terms of their running cost. 

“Which means it’s going to become more expensive to move freight on the road. And the same would be with passenger vehicles and taxis.”

This is what the concern is about, once again, the consumer will be hit with an increase in transport either to work or the goods that we buy, he added. 

Listen to the full interview on Radio Islam’s podcast below.