Another aggravating factor is the disruptions in supply chain due to Covid-19. Consequently, oil prices are at a seven-year high. Natural gas prices have nearly doubled in six months. Petrol prices in many locations are north of USD 4 a gallon. Cotton prices are up 25 percent since last month. Food prices have been rising steadily for the past few months. Not until the recent news stories about brownouts in China, very few people were aware about the steady ascent of coal prices, past USD 100 per metric tonne in June and then past USD 130 in mid-July to over USD 170 in early October. This is almost four times the price in September 2020!

So far, the U.S. Federal Reserve Bank has maintained that this inflation is transitory, but many experts believe otherwise.

Tyre Segment Not Immune To Inflation

The global tyre market reportedly sold more than 2 billion tyres in 2020, and is projected to grow to more than 2.7 billion tyres sold annually by the year 2026.

One large independently-owned tyre retailer urges buyers not to put off purchasing new tyres, as prices for tyres and vehicle parts have been trending up for the last several months, in part due to rising commodity costs and supply chain interruptions caused by Covid-19. These increases have shown no signs of levelling off.

“We have tracked as many as 20 price increases from 10 major tyre manufacturers,” said Jake Burt, owner of Burt Brothers Tires & Service in State of Utah. And the price hikes aren’t just limited to tyres. “We are also seeing prices climbing for parts, so we’re urging customers needing repairs to get those taken care of now rather than paying more for parts in the future — or having to wait longer than usual to get those parts.”

Burt said that his dealership is working overtime to beef up their inventory ahead of more changes. “We order every day and are doing everything to fill trucks and get them in our warehouse and to our stores so we can shield our customers from future increases.”

The Goodyear Tire & Rubber Co will increase consumer tyre prices for the fourth time in less than a year. Goodyear raised its tyre prices twice within a short window of time, first in December 2020 and then again in April 2021. The next increase went into effect in September 2021. Goodyear Chairman, CEO and President Rich Kramer told investors during the latest earnings call that consumer tyre prices will increase up to eight percent with this latest pricing action. The action will cover passenger and light truck tyres from both Goodyear and the recently acquired Cooper Tire and Rubber Co.

These price actions are also the result of the rising cost of raw materials like natural rubber and oil, used to make butadiene and carbon black for synthetic rubber. These materials make up more than 30 percent of the cost to manufacture a tyre, and their prices have already surpassed pre-Covid levels and continue to rise steadily. Goodyear predicts its cost of raw materials used for tyres will rise by about USD 175 million in 2021.

On a personal level, my trusty old mountain bicycle, purchased for about USD 50 in mid-1990s, needed a replacement tyre. No tyres were available during the height of the pandemic, but are now becoming available at few outlets, provided you are willing to part with about USD 25 – half the cost of the bicycle!

As part of a strategic effort to increase its presence in the region's premium original equipment (OE) market, Kumho Tire has confirmed its plans to establish its first tyre production facility in Europe by 2027.

The company has shortlisted Poland, Serbia and Portugal as possible locations for the plant, which is projected to need an investment of more than KRW1 trillion (USD 705 million). The decision is closely linked to Kumho’s ambition to strengthen its partnerships with European automakers and was revealed by Kumho Tire CEO during the South Korean premiere of Kumho's new Ecsta Sport tyre line.

Kumho has recently secured OE supply contracts with major brands such as Mercedes-Benz, BMW and Volkswagen Group. At the moment, Kumho runs eight tyre production plants in China, Vietnam, South Korea and the US. Its capacity to compete in the premium OE market, however, has come to be perceived as being constrained by the absence of a European production base. Through the benefits of local production, the new facility will improve response to European client requests, save freight costs and shorten delivery times, all of which will strengthen the company's partnerships.

Sentury Tire USA has opened pre-enrolment for its two associate dealer programmes (ADPs), the Delinte HYPERDRIVE Associate Dealer Program and the Landsail Elyte Associate Dealer Program, underscoring the company’s commitment to rewarding dedication and partnership to the Landsail and Delinte brands.

The ADPs, which are customised for each brand and intended to encourage dealers, will formally start on 1 June 2025. Both programmes give dealers access to special benefits, incentives and strong tools to help them expand their businesses. This involves dependable customer service, effective marketing and worthwhile financial incentives to promote dealers' success at every stage.

Beginning in Q3, dealers may earn up to USD three per tyre through the Delinte HYPERDRIVE Associate Dealer Program. Dealers can receive retroactive benefits for purchases completed in Q2 if they register before 1 June. The awards are available for all Delinte PTR, LTR and the new DV3 LMD AS last-mile delivery tyres. For all Landsail PTR and LTR tyres, independent dealers that sign up for the Landsail Elyte Associate Dealer Program can also earn up to USD three per tyre. For customers who sign up by June 1, the new LMD 100 AS last-mile delivery is also eligible for the benefits and will get the same early bird incentive for Q2 2025.

No initial order is necessary. Dealers only need to register to begin making money. According to the monthly programme rewards structure, 48 tyre purchases each month are eligible for a reward of USD one per tyre, 120 tyres are eligible for a reward of USD two per tyre and 240 or more tyres are eligible for a reward of USD three per tyre.

ENSO, a London-based tyre manufacturer engaged in the production of sustainable tyres specially designed for electric vehicles (EVs), has launched its new ENSO Premium range of EV-specific ultra-high-performance (UHP) tyres aimed at drivers of high-performance EVs such as the Tesla Model 3 and Model Y.

Specifically designed for electric passenger vehicles, the ENSO Premium range comes with A/A EU-label ratings for both energy efficiency and wet grip. The tyres are designed to provide safety, increased range and a reduced total cost of ownership. Conventional tyre designs frequently fall short of the special performance needs of electric vehicles, which include greater vehicle weight, regenerative braking and higher torque loads. By lowering tyre wear and rolling resistance, ENSO Premium takes care of these issues.

The company is an authorised provider of replacement tyres for LEVC's electric taxis and has partnered with Uber to install its tyres in high-mileage metropolitan areas. The company now plans to grow throughout Europe and North America, and with ENSO Premium, it is now offering its services to individual EV owners throughout the United Kingdom. According to ENSO, the range offers advantages including longer tyre life and fewer replacements, lower energy usage, fewer charging stops and lower CO₂ emissions and tyre particle pollution.

Gunnlaugur Erlendsson, CEO and Co-Founder, ENSO, said, “We’re plugging a long-standing gap in the tyre market by offering EV drivers a purpose-built, affordable, premium EV tyre alternative that matches the innovation of their EV.”

Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, has announced a general price hike in North America for its SBS, SIS and HSBC product lines with effect from 1 May 2025.

Following a careful analysis of the effects of recently implemented tariffs, related cost increases and a conclusion that the company cannot independently absorb these repercussions, Kraton is adopting these pricing hikes, according to a company statement. The company further said that it will keep an eye on the scene and reassess these measures promptly in the event that conditions and US import tariffs alter.