A stiff increase in excise duties on tyres imported from China will probably push cash-strapped South African motorists further down the slippery slope of poor road safety.
This is according to the Automobile Association (AA). In a statement released late in September, the AA lamented the announcement by government of the addition of a 38.33% excise duty on tyres imported from China. This is on top of existing excise duties of between 25% and 30%. Tyres sold locally will now have an excise loading of between 63.33% and 68.33%.
The AA reasoned “that already embattled consumers will balk at paying higher prices for tyres and will, unfortunately, continue using tyres that are in a poor condition because they cannot afford the new prices”.
According to the AA: “The increase in excise duties comes after the South African Tyre Manufacturers Conference (SATMC) argued to the International Trade Administration Commission (ITAC) that tyres were being imported to South Africa at ‘unfairly low prices’.”
The Tyre Importers Association of South Africa (TIASA) has countered SATMC’s complaint though, saying even local manufacturers import up to 80% of the variety of tyre models they sell anyway and has questioned the rationale behind the increased taxation.
The AA also warned that public transport users will be at risk.
“Operators not wanting to spend the extra money on new tyres will continue to drive with poor condition tyres, or use inferior ‘refurbished’ tyres, putting the lives of their passengers and other road users at risk. The increased prices of tyres are, simply put, going to create major road safety problems in future,” noted the AA.
Ford will launch seven new models in Europe by 2029, it announced recently, as it seeks to grow its flagging passenger car sales, fend off fierce competition from Chinese rivals and maintain an edge in the continent's commercial vehicle market.
House lawmakers in the United States (US) have proposed bipartisan legislation that would require electric vehicles (EVs) to pay a R2 227 ($130) fee annually for road repairs, and R578 ($35) for some plug-in hybrid models, according to Reuters.
Taking on the challenge of restoring a legacy brand to a stronger position in South Africa is now the focus for Dealer Principal David Venter and his team at Mazda The Glen in the south of Johannesburg.
Advertisement
Advertisement
You can't buy happiness but you can buy cars and that's kind of the same thing.
Unknown
Ford will launch seven new models in Europe by 2029, it announced recently, as it seeks to grow its flagging passenger car sales, fend off fierce competition from Chinese rivals and maintain an edge in the continent's commercial vehicle market.
The battle between Chinese carmakers and their Japanese competitors in South Africa increasingly appears to be a fait accompli in favour of the newcomers from China.
Volvo Cars and Google are working together to shape a new generation of driving experiences by combining automotive engineering with artificial intelligence.
