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Indonesia wants to be friends: a solution has been found to the problem of the tire shortage in Russia

  • January 17, 2023
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A rather significant, very noticeable shortage of tires has formed on the Russian market, which has not yet been overcome on its own. Many domestic factories are in

Indonesia wants to be friends: a solution has been found to the problem of the tire shortage in Russia
A rather significant, very noticeable shortage of tires has formed on the Russian market, which has not yet been overcome on its own. Many domestic factories are in limbo, homegrown brands cannot meet all needs, and from imports – only China. However, it is very likely that the situation will change soon. And how exactly, says the portal “AvtoVzglyad”.

While some are terminating contracts, blocking supplies and selling or “handing over” factories, others are building relationships. There are no words for support here, it’s just business. Moreover, it is a world and global business, in which there is no room for feelings or emotions. Only cold calculation. A similar situation exists in virtually all trading areas and tires are no exception.

Since February 24, 2022, many well-known brands have ceased cooperation with Russian companies: they have canceled contracts, closed offices and switched to standby mode. This maneuver caused a sharp rise in prices on the shelves, although there were more than enough goods in the warehouses. But there was nothing to replenish them, so the sellers switched to “parallel imports.” And not to be so sad, prices were raised sharply. No offense, as they say, everyone is “no sugar”.

Almost a year has passed, but the details have not appeared: the positions of many popular brands are still in question (and have not left and have not stockpiled), domestic brands cannot fully cover the country’s needs, and Chinese tires are not suitable for everyone. And then a new player enters the market: Indonesia.

Indonesia’s ambassador to Russia, Jose Antonio Morato Tavares, officially stated that his state is currently establishing logistics routes to our country for a number of products, including tires. Interestingly, these Asians have their own brands, which are wholly or partly owned by major tire manufacturers, but have much more leeway than their legal owners.

For example, the Indonesian brand Achilles is inextricably linked to the prematurely deceased Nokian, but also to the infamous and even revered Yokohama. This brand produces quality tires and currently actively imports its products all over the world. In addition, it is worth taking a closer look at Laufen, behind which Hankook is hiding. Yes, this is a budget division of the Korean manufacturer, which is engaged in the traditional business of all subsidiaries – the release of old models at much more attractive prices.

In all this prosperity, there is only one slippery question: what to do with winter tires? Indonesians, Iranians and Chinese have already learned how to make solid summer tires that can easily replace the products of well-known European and American brands in Russia, but with nails and friction it is much worse. The “budget segment” often becomes dubious and cannot cope with its immediate task …

So, most likely, this segment will remain entirely with Russian brands. For example, behind the newly formed Torsten and Ikon, which will replace Nokian and Nordman.

Photo: groupenicoletti.com

While some are terminating contracts, blocking supplies and selling or “handing over” factories, others are building relationships. There are no words for support here, it’s just business. Moreover, it is a world and global business, in which there is no room for feelings or emotions. Only cold calculation. A similar situation exists in virtually all trading areas and tires are no exception.

Since February 24, 2022, many well-known brands have ceased cooperation with Russian companies: they have canceled contracts, closed offices and switched to standby mode. This maneuver caused a sharp rise in prices on the shelves, although there were more than enough goods in the warehouses. But there was nothing to replenish them, so the sellers switched to “parallel imports.” And not to be so sad, prices were raised sharply. No offense, as they say, everyone is “no sugar”.

Almost a year has passed, but the details have not appeared: the positions of many popular brands are still in question (and have not left and have not stockpiled), domestic brands cannot fully cover the country’s needs, and Chinese tires are not suitable for everyone. And then a new player enters the market: Indonesia.

Indonesia’s ambassador to Russia, Jose Antonio Morato Tavares, officially stated that his state is currently establishing logistics routes to our country for a number of products, including tires. Interestingly, these Asians have their own brands, which are wholly or partly owned by major tire manufacturers, but have much more leeway than their legal owners.

For example, the Indonesian brand Achilles is inextricably linked to the prematurely deceased Nokian, but also to the infamous and even revered Yokohama. This brand produces quality tires and currently actively imports its products all over the world. In addition, it is worth taking a closer look at Laufen, behind which Hankook is hiding. Yes, this is a budget division of the Korean manufacturer, which is engaged in the traditional business of all subsidiaries – the release of old models at much more attractive prices.

In all this prosperity, there is only one slippery question: what to do with winter tires? Indonesians, Iranians and Chinese have already learned how to make sturdy summer tires that can easily replace the products of well-known European and American brands in Russia, but with nails and friction it is much worse. The “budget segment” often becomes dubious and cannot cope with its immediate task …

So, most likely, this segment will remain entirely with Russian brands. For example, behind the newly formed Torsten and Ikon, which will replace Nokian and Nordman.

Source: Avto Vzglyad

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