The Ministry of Industry and Commerce promised that the fall of the ruble would not affect car tire prices
August 29, 2023
0
Representatives of the tire industry predicted an imminent increase in tire prices – they say that manufacturers are forced to raise prices due to the fact that rubber
Representatives of the tire industry predicted an imminent increase in tire prices – they say that manufacturers are forced to raise prices due to the fact that rubber imports, necessary for rubber production, are paid in foreign currency. But the Ministry of Industry and Trade hastened to refute this, explaining that neither the exchange rate of the ruble nor the increase in the cost of materials can affect the cost of production.
— The share of natural rubber from Asian countries in passenger tire production is about 5%. The growth of the ruble exchange rate and the increase in the price of natural rubber will not significantly affect the cost of passenger tires. For example, a 30% increase in the cost of natural rubber leads to a 1.5% increase in the cost of a tire.
As for the situation with the increase in the price of the material itself, let’s say that we are convinced. What about the exchange rate? The Ministry of Industry and Trade says that our producers mainly use the raw materials purchased in rubles. And the share of foreign components is allegedly “small”: most of it is in the same rubber. But it’s hard to believe. After all, as you know, tire production requires about 200 different “ingredients”, many of which are not available in Russia. This means that the exchange rate can only affect the cost of tires.
On the other hand, what other comments can you expect from a department that is unable to assess the true state of affairs and the magnitude of the disaster? The car industry and related industries are facing serious problems, but instead of real support for manufacturers and citizens, the expensive Ministry of Industry and Commerce is just putting a spoke in everyone’s wheels: increasing waste collection, subsidizing electric vehicles . And of course he occasionally reports on his successes. Just as illusory as his relief measures.
— The share of natural rubber from Asian countries in passenger tire production is about 5%. The growth of the ruble exchange rate and the increase in the price of natural rubber will not significantly affect the cost of passenger tires. For example, a 30% increase in the cost of natural rubber leads to a 1.5% increase in the cost of a tire.
As for the situation with the increase in the price of the material itself, let’s say that we are convinced. What about the exchange rate? The Ministry of Industry and Trade says that our producers mainly use the raw materials purchased in rubles. And the share of foreign components is allegedly “small”: most of it is in the same rubber. But it’s hard to believe. After all, as you know, tire production requires about 200 different “ingredients”, many of which are not available in Russia. This means that the exchange rate can only affect the cost of tires.
On the other hand, what other comments can you expect from a department that is unable to assess the true state of affairs and the magnitude of the disaster? The car industry and related industries are facing serious problems, but instead of real support for manufacturers and citizens, the expensive Ministry of Industry and Commerce is just putting a spoke in everyone’s wheels: increasing waste collection, subsidizing electric vehicles . And of course he occasionally reports on his successes. Just as illusory as his relief measures.
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.