Toyo Rubber Increases Tire Prices In The US

- Nov 20, 2018-

According to "Nihon Keizai Shimbun" reported on November 12, Japan's Toyo Rubber Industry announced on November 9 that it would increase the price of dealers for trucks and buses used by US sales subsidiaries. Implemented on January 1, 2019. With the tariffs on Sino-US trade wars, Chinese-made tires sold in the United States will increase in price, and Bridgestone has also announced price increases. Due to strong demand, Toyo Rubber will also follow.

The price increase rate of truck and bus tires is 2% except for some products. In addition, commercial tires such as passenger cars, pickup trucks and SUVs will also increase in price, but the increase is not fixed. The company's tire business sales in fiscal year 2017 (as of December 2017) accounted for 80% of the company's overall, reaching 327 billion yen. Among them, North America accounts for 50%. Toyo Rubber said that Bridgestone and Michelin have announced price increases in the United States.

In North America, the company has a 40% share of the 20-inch and larger-diameter tires used in SUVs. In the United States, in April 2017, prices were raised on the basis of rising prices of raw materials such as natural rubber and synthetic rubber.