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Head to your nearest tire shop now!

By SYF77 on 04 Oct 2011

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Increased demand from China and the recovery of the Japanese automotive industry after the earthquake have resulted in a surge in demand for tires, but the downside is that it has also increased the price for rubber, according to Bloomberg. During the first half of 2011, China has produced more cars than GM and Volkswagen put together, and Japan has seen its largest increase in sales in the past three decades.

Demand for new tires will thus reduce the global rubber stocks to 12 percent in 2012, according to a market analysis from Citigroup. As a result, prices could rise by 18 percent by December, and should be felt by end consumers. “There are pessimistic views about economies as concerns grow over Europe’s debt crisis, but we cannot ignore the fact that auto sales in emerging markets are still expanding,” said Tetsu Emori, the Tokyo-based chief fund manager at Astmax Co.

Well, it looks like the price of tire and the world economy are going in opposite direction. This is a double whammy for consumers, who are going to pay more for their tire and most likely suffer a reduction in annual remuneration package this year. As the title of the blog suggest, head to your nearest tire shop now before the price goes up!

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SYF77
Written by SYF77
I have been a car fanatic since 1989, when my father was changing our family car then to a Toyota Corolla 1.6 GL fitted with a Twin Cam 16 valve engine that was carburetor-fed, a big deal back in those days. The automobile technology and industry fascinates me and I hope to broadcast these interesting developments to everyone out there through this blog.



 
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