Fleet News

Rapidly rising tyre prices will hit fleets hard

The fleet industry is being warned that the unprecedented increase in the price of tyres that has been seen in recent months will continue.

The increasing price of raw materials resulted in a significant increase in prices last year.

In the second half of 2008, further price increases were caused by the rising cost of crude oil, while the fall in the value of sterling also forced prices higher.

These factors have meant the cost of tyres has increased by around 20% over the past few months.

According to Kwik-Fit Fleet, the increase in the cost of new tyres is now one of the biggest challenges facing fleets.

“Both Kwik-Fit Fleet and our customers are suffering from the unprecedented tyre price increases so far,” said head of Kwik-Fit Fleet Mike Wise.

“We are now waiting to see what the likely tyre price increases are in February and March.

"We expect considerable price increases, which we will be forced to pass on to customers.”

Tyre manufacturers are also reportedly cutting back production due to a reduction in global demand.

“The colossal worldwide reduction in new vehicle production means that tyre makers have also reduced tyre production.

"This could result in shortages of some tyre sizes,” said Mr Wise.
 

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