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The Automobile Association of South Africa warned that the decision to impose higher duties on tyre imports from China could ultimately lead to safety concerns as hard-pressed consumers balk at the idea of paying the higher prices.
The AA has now called for the decision by the International Trade Administration Commission of South Africa to impose additional duties of 38.8% on imported tyres from China, to be reversed.
The ITAC ruling was in response to an anti-dumping application by the SA Tyre Manufacturers Conference, representing Goodyear, Sumitomo, Bridgestone and Continental and will be in place for the next six months.
The spokesperson for the Tyre Manufacturers Conference, Nduduzo Chala, said earlier that it was a “good result” for them as “it was not about increasing tyre prices but about equalising trade.”
But, the SA Tyre Importers Association said this decision will result in taxi operators paying 23% more for tyres, while truck and logistics providers will pay 22% more, and for passenger cars, the outlay could be between 21% and 25% more.
Chairperson, Charl de Villiers, said they are calling on the government to reverse the decision.
Meanwhile, the Automobile Association said the imposition of provisional higher excise duties is a major blow to road safety in the country and should be reversed immediately.
The AA says while the wrangling over the reasons for the increased excise duties continues, already financially-stretched consumers will, ultimately, bear the brunt of the decision.
“Increased fuel prices have seen food prices climb and resulted in higher private and public transport costs. Those with private transport will now have to pay more for tyres – essential safety equipment on vehicles – something we don’t believe will happen,” the AA said.
Public transport providers such as buses and taxis will either not pay the new prices or merely pass the increases to their passengers. Both options are unacceptable.”
The Association said the new prices would significantly increase the replacement cost of tyres, forcing many motorists to drive on tyres they should not. It said public transport users are also at risk.
“The incidents of bursting tyres, we believe, will increase sharply because of this,” noted the AA.
