Challenges abound in SA’s tyre industry

The South African tyre industry faces a range of challenges, from waste management and road safety concerns to competition from cheaper imports. Recent policy changes and industry initiatives seek to address these issues, but questions remain about their effectiveness and long-term impact.

The South African Tyre Manufacturers Conference (SATMC) represents the interests of the country’s four major tyre manufacturers: Bridgestone, Continental, Goodyear, and Sumitomo Rubber South Africa. Collectively, these companies directly employ over 6,000 and indirectly support more than 19,000 people. The SATMC advocates for policies that protect and promote local manufacturing, and engages in discussions about industry sustainability and regulation.

One of the most notable recent policy interventions is the introduction of anti-dumping duties on Chinese tyre imports. In July 2023, the International Trade Administration Commission (ITAC), with support from the Minister of Trade, Industry, and Competition, imposed duties ranging from 7.18 to 43.6% on certain imported tyres. These measures – set to remain in place until 2028 – were designed to counteract unfair pricing practices that threaten local manufacturers.

While the SATMC argues that these tariffs are necessary to protect domestic production, critics – including some importers and consumer groups – warn that higher prices could be passed on to consumers. The true impact of these duties on both local businesses and road users will become clearer over time.

Environmental concerns are an ongoing challenge, with South Africa generating thousands of tonnes of waste tyres annually. Many of these end up in illegal dumps or being burnt, causing severe pollution. The SATMC is working alongside the Tyre Importers Association of South Africa (TIASA), the Tyre Equipment Parts Association (TEPA), and government agencies to develop a more efficient Waste Tyre Management Plan. The aim is to ensure responsible disposal, encourage recycling, and reduce the environmental footprint of discarded tyres. The effectiveness of these plans depends largely on government support and enforcement, which has been inconsistent in the past.

Another pressing industry issue is the widespread sale of second-hand or partly-worn tyres, which currently face little regulation. Many of these tyres are resold despite being unsafe for road use, increasing the risk of accidents due to poor tread depth, weaker structures, and higher chances of failure.

The SATMC has been advocating for stricter regulations to ensure that second-hand tyres meet minimum safety standards before being resold. However, some industry observers argue that enforcement remains weak, and there is little deterrence for those who continue to sell unsafe tyres.

Illegal tyre imports, smuggling, and counterfeit products continue to undermine the formal industry and road safety. The illicit tyre trade is often linked to tax evasion and substandard products, which fail to meet safety regulations. The SATMC has been working with law enforcement agencies to identify and tackle these activities, arguing for stronger regulatory oversight and harsher penalties. Some experts believe a lack of coordination between agencies and limited resources make this a difficult problem to solve in the short term.

As the local tyre industry evolves, manufacturers and policymakers must strike a balance between protecting local production, ensuring affordability for consumers, and promoting sustainability. The SATMC continues to advocate for policies that support local manufacturing, but there is still significant debate over whether current measures, such as anti-dumping duties and regulatory changes, will deliver long-term benefits.

Ultimately, the success of these efforts will depend on a combination of effective policy implementation, industry cooperation, and stronger enforcement mechanisms. While recent initiatives represent progress, much remains to be done to address broader industry challenges.