AKRON (July 18) — More importers of Chinese-made tires are notifying their dealers of price increases of 3 to 8 percent stemming from recent changes by the Chinese government in the way it calculates the value-added tax on finished goods for export, according to several U.S.-based importers and marketers of tires from China.
China´s government made public in early June its decision to reduce the size of VAT refunds it provides producers of goods for export. In the case of tires, the refund is being reduced to 5 percent from 13 percent.
China Manufacturers Alliance L.L.C., a subsidiary of China´s Shanghai Tyre & Rubber Co. Ltd., said it is raising prices 4.5 percent on Sept. 1 on its Double Coin and Warrior radial truck tires and 5 percent on all other brands it carries, including Bluestar.
GPX International Tire Co., which last year acquired its own manufacturing entity in China, raised prices July 1 on most of its products 3 to 5 percent, depending on the line. This applies as well to the Aeolus and Triangle truck tire lines GPX handles in addition to its own brands.
Hercules Tire & Rubber Co. has notified customers it is raising prices Aug. 1 by 4 to 6 percent, depending on the brand and line. Most of Hercules´ tire brands are made, at least in part, by one or more Chinese tire companies, including GITI Tire, Qingdao Sailun Radial Tire Co. Ltd. and South China Tire.
Omni United USA Inc. raised prices on its Roadlux radial truck tires 5 percent July 1 and will increase prices for its Goodride passenger radials 5.5 percent Aug. 1. Prices of the firm´s Radar off-the-road tires will be going up as well, but the firm hasn´t yet been told by its suppliers the size of the increase.