Africa-Press – South-Africa. The South African Tyre Manufacturers Conference (SATMC) has defended its application for imported tyre tariff hikes, saying it will protect local producers, who provide thousands of jobs but are struggling to compete.
The grouping, made up of Bridgestone, Continental, Goodyear and Sumitomo, applied to the International Trade Administration Commission of South Africa (ITAC) for anti-dumping duties on Chinese imports.
ITAC is currently investigating SATMC’s application. The four companies manufacture tyres in South Africa, but also import some of their tyres.
But tyre importers have been critical, saying it will cause prices of tyres to balloon. On Tuesday, the Tyre Importers’ Association of South Africa (Tiasa) said it would oppose the application. Tiasa’s chairperson Charl de Villiers said that the taxi industry would be the hardest hit by the planned tariffs.
The association believes hiking up imports would hurt consumers who are already under pressure.
In a statement on Friday, SATMC’s managing executive Nduduzo Chala hit back, saying local producers, who employ more than 6 000 people to compete, were suffering.
Chala said: “The SATMC is not against healthy trade and competition at fair prices, but rather against tyres designed and manufactured in China that are imported unfairly into South Africa at unsustainable, rock-bottom rates.”
Chala added that the group works with importers whose pricing is fair, and quality and safety is a priority. These importers also provide great after-sales service, guarantees, and insurance, which uplifts the domestic tyre sector.
Chala said in 2021 imported tyres made up more than 50% of local circulation, with most coming from China. But more than 70% of the tyres sold by SATMC’s members in 2021 were produced locally.
The group has described the pricing of China’s imports as “predatory” and the cause of “material injury to the domestic manufacturing industry”.
“It is not our intention to increase tyre prices or to hit the wallets of customers. This is about fighting unfair trade. We want to keep the South African manufacturing sector alive,” said Chala.
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