According to research conducted by Opinium for Halfords, 54 per cent of motorists are wrongly told they must get their vehicle serviced at a dealership to protect their warranty. The truth is that, under UK law, motorists can get their vehicles serviced anywhere from the moment they drive off the forecourt.
Nexen Tire is “restructuring” the prices of its summer and all-season tyres. The new price list will be valid for the European market, including the United Kingdom and Turkey. The “necessary structural price adjustment” is effective from 1 October 2023 and applies to all orders placed from that date.
The cost-of-living crisis is pushing the European Commission into action. Having faced accusations of being on the backfoot since the pandemic, it is now increasing the number of dawn raids and antitrust investigations. The ultimate intention is to prevent consumers facing higher costs than necessary from businesses.
During the last few years, tyremakers have repeatedly increased prices. The combination of pandemic-related complications, lower car production rates, higher shipping costs as well as higher raw material costs meant that was inevitable. More recently, the situation was compounded by unusually high rates of general inflation driven by increased energy costs that came as the result of war in Ukraine. However, shipping costs are now lower than they were and industry sources report that tyre manufacturers are beginning to change their previously one-way price movement policy. But is that reflected in sell-out pricing? Specifically, what about the stereotypically more price-drive online etail tyre business? Tyres & Accessories got in touch with Encircle Marketing, which specialises in the kind of market research that can answer those questions, in order to find out.
4×4 tyre sales may have fallen due to the effects of coronavirus and lockdown, but prices in certain key sizes are actually higher than they were before those challenges presented themselves at the start of the year. Tyres & Accessories spoke to tyre market and pricing data experts Encircle Marketing in order to learn the details.
When you break the data down by size, a number of interesting trends are immediately identifiable. Firstly, there was a clear pre-lockdown price fall in February. The average price of a 255/55 R19 V tyre, for example, fell almost £6 from £138.10 to £132.86 between January and February. However, the average price of this size recovered to a point higher than the January starting point in March (£138.90).
4×4 tyre sales may have fallen due to the effects of coronavirus and lockdown, but prices in certain key sizes are actually higher than they were before those challenges presented themselves at the start of the year. Tyres & Accessories spoke to tyre market and pricing data experts Encircle Marketing in order to find out more.
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Looking at the market as a whole, online tyre prices have fallen on average since the start of 2018. According to the latest data supplied by market research specialists at Encircle Marketing, online tyre prices in August 2018 were 1 per cent lower on average than in January. However, the data is not uniform across the sector and different online tyre retailers (otherwise known as e-tailers) have different pricing policies.
Earlier research based on point of sales system-based sell-out data shows that mid-range all-season tyres are leading market growth, followed by premium tyres (see “Mid-range all-season tyres lead market growth” for more on this). At the same time 4×4 and SUV tyres specifically appear to be driving growth. Both facts point to the hypothesis that market growth is being driven by high-value products, which makes both all-season tyres in general and SUV/4×4 all-season tyres in particular attractive parts of the tyre business to engage in. But what evidence is there that this thesis is supported by sell-out pricing?
A year after we predicted that car tyre prices would rise during 2017 as part of last year’s car tyre feature, the latest data provided by tyre market research specialists Encircle Marketing shows that prices are indeed recovering. However, while tyre prices recovered to 2016 levels during 2017, there is still some way to go before average prices reach 2015 levels. Encircle’s latest figures examine the shape of the traditional tyre retail market and the online tyre market.
While it was once known as the bastion of bargain basement tyre prices, the cost of car tyres in the UK online retail space has increased significantly since the start of 2017. According to the latest data compiled by industry analysts Encircle Marketing, the average online tyre price increased 7 per cent in the eight months between January and August 2017. On average every segment was up by at least a couple of per cent, but in August specialist products (such as run-flats) were being sold at prices 8 or even 9 per cent higher than in January 2017.
As we transition into spring, many think of new-born lambs and flowering bulbs as symbols of the new life of the year ahead. However, for accountants and many others working in the finance side of things, the beginning of April marks the end of the tax year. Along with the end of the tax year come a reasonably regular slew of motorist spending analyses. Two such surveys caught Tyres & Accessories’ eye because they offer insights into what the tyre-related “cost of ownership” is in practical terms.
A Carspring study shows devaluation percentages in each country as well as a depreciation ranking by brand in the UK. The research found that Minis retain the most value, 46.08 per cent after 56000 kilmetres or 34700 miles. At the other end of the spectrum, Toyota are worst with a devaluation rate of 74.59 per cent.
The UK economy grew 0.6 per cent in the October-to-December period. Taking the year as a whole, the economy grew 2 per cent, 10 per cent slower than the growth of 2.2 per cent achieved in 2015. Good news, I hear you say. But, as with many things in life, the details tell a more complicated story.
Many sources, such as the BBC, contend that this better-than-expected growth is because of increased consumer spending during the last quarter of the year. However, it is also worth pointing out that UK car production achieved a 17-year high in 2016, according to the latest figures published by SMMT. This comes at the same time that the motor manufacturer’s association reported new car registrations of just under 2.7 million for the year – itself another record. This being the case, it is worth taking a closet look at the figures and the messages give us in the inextricably linked tyre sector as well as the economy as a whole.
With raw material prices reaching the sky-rocket part of their lifecycle, as well as realisation by some Chinese tyremakers that unrealistically low prices can’t go on forever, all in the presence of the now ubiquitous post-Brexit vote uncertainty, many industry observers have suggested that tyre prices – including those for passenger car applications – are likely to rise during 2017. Tyres & Accessories spoke with Encircle Marketing’s resident industry analysts David Myers and Jason Cunningham in order to find out more.