By Denna Bowman
Continental are set to hike their tyres prices across Europe to compensate “at least partly” for the rising costs of raw materials.
The world’s fourth largest tyres manufacturer, announced it would raise the list prices on summer tyres by 3 per cent on average and by around 5 per cent for winter tyres from 1st June in Germany.
Hartmut Woehler, head of sales and marketing for Continental’s replacement car tyre business in Europe and Africa, said: “We are currently preparing to implement this price increase across Europe.”
The company also supplies tyres directly to carmakers, called OE for “Original Equipment”, but a tyremaker’s real profits stem from the high margins made on its replacement sales.
Continental blamed the price hikes on the rising cost oil and natural rubber, which has doubled, and comprises 40 percent of the raw materials in a tyre.
It said oil prices rose 80 percent over last year’s period, increasing by extension the costs for a petroleum by-product used in tyres called carbon black.