AA warns higher tyre duties a blow to road safety

The Automobile Association (AA) has added its voice to a growing backlash against new import duty hikes being imposed on Chinese tyres.

The provisional higher excise duties on tyres imported to SA from China is a major blow to road safety in the country and should be reversed immediately, the AA said.

The AA expects that already embattled consumers will balk at paying higher prices for tyres, and will, unfortunately, continue using tyres that are in a poor condition because they cannot afford the new prices.

Earlier in September the government announced an additional 38.3% duty on tyres from China. This is on top of existing duties of between 25% and 30%. Tyres sold locally will now have an excise loading of between 63.33% and 68.33%.

Earlier, the Road Freight Association (RFA) said the increased duties would affect consumers not only through higher-priced passenger car tyres but also increased costs of public transport and goods.

Gavin Kelly, CEO of the RFA, said more than 80% of SA’s goods are transported by road. He warned that the increase in the price of tyres will drive the price of transportation up by at least 8%.

The increase in duties comes after the SA Tyre Manufacturers Conference (SATMC), which represents SA’s four tyre manufacturing companies: Continental, Bridgestone, Goodyear and Sumitomo, argued to the International Trade Administration Commission (Itac) that tyres were being imported to SA at “unfairly low prices” and that damaged the local tyre manufacturing industry.

However, the rival Tyre Importers Association of SA (Tiasa) said even local manufacturers import up to 80% of the tyre models they sell and questioned the rationale behind the hike in duties.

Tiasa said introducing a pricing bombshell into the current inflationary environment will be devastating for South Africans.

The AA said that while the wrangling continued, already financially stretched consumers will 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. 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,” said the AA.

According to the Road Traffic Management Corporation, 1,2541 people died on SA’s roads in 2021. Human error, environmental conditions (such as poor visibility, sharp bends, wet and slippery surfaces, and stray/wild animals) and vehicle factors such as bursting or smooth tyres, poor brakes and faulty headlights contributed to these deaths. Bursting and smooth tyres contributed to 49% of deaths in this category, which is by far the biggest element in terms of vehicle factors causing road deaths.

“Tyres are critical pieces of safety equipment, and we always advise motorists to have them checked regularly and replaced if needed. Of course, we also advise motorists to budget for this expense as part of their overall vehicle ownership. But the reality is that the new prices will significantly increase the replacement cost of tyres, forcing many motorists to drive on tyres they should not. The incidents of bursting tyres, we believe, will increase sharply because of this,” noted the AA.

The AA also said public transport users are also at risk.

“Operators not wanting to spend the extra money on new tyres will continue to drive with poor condition tyres, or use inferior ‘refurbished’ tyres, putting the lives of their passengers and other road users at risk. The increased prices of tyres are, simply put, going to create major road safety problems in future,” noted the AA.