In a trend that is reshaping the automotive market in South Africa, it is projected that within the next five years, seven out of every 10 vehicles will be equipped with lower-priced imported tyres. This forecast comes as a result of a notable shift observed in 2021, where these imported tyres, predominantly sourced from China, accounted for over 50% of the local tyre market circulation, according to research conducted by the South African Tyre Manufacturers Conference (SATMC).
Werner du Preez, the general manager of Eastern Cape-based Kelston Tyres, attributes the rapid adoption of these imported tyre brands to the increasing price sensitivity among South African consumers. He notes that while these brands may lack the pedigree of established local manufacturers like Continental and Dunlop, they have gained significant traction in the market due to their affordability.
Looking ahead, du Preez and industry peers anticipate a substantial uptick in the preference for these imported tyres among motorists in the coming years. This growing demand may potentially impact the supply of locally-manufactured tyres, raising concerns within the domestic tyre manufacturing sector.
Despite the allure of lower prices, du Preez cautions consumers about potential drawbacks associated with imported tyres. He highlights concerns regarding the lack of transparency regarding the manufacturing origins of these tyres, as well as the absence of dedicated representatives to address issues such as damage or factory defects promptly—a service readily available with locally-produced tyres.
Furthermore, du Preez underscores the nuanced differences in quality between imported and locally-manufactured tyres. While imported tyres have seen improvements in quality over the years, they may not be as well-suited to South African weather and road conditions as their locally-produced counterparts, potentially resulting in a shorter lifespan and compromised performance.
In terms of longevity, du Preez notes that locally-manufactured tyres typically outlast their imported counterparts by an average of 15,000 to 20,000 kilometers. However, he emphasizes that driving style and road conditions also play significant roles in determining the lifespan of any tyre product.
Despite the rise of imported alternatives, du Preez observes that many customers in Nelson Mandela Bay remain loyal to established brands such as Continental, Goodyear, Dunlop, and Bridgestone/Firestone, citing trust in brand reputation and longevity.
Last year, the SATMC took proactive measures by successfully lobbying the International Trade Administration Commission of South Africa to impose anti-dumping duties of 38.8% on Chinese tyre imports. This decision aimed to address the adverse impact of unsustainable import rates on local tyre manufacturers, safeguarding the livelihoods of over 6,000 employees across the country.
As South Africa navigates the evolving dynamics of its automotive industry, the balance between affordability and quality remains a pivotal consideration for consumers and policymakers alike.