Screeching halt to new tyre sales as retreads get grip on volumes

NATIONAL Tyre Services Limited says its new tyre sales dropped by 26 percent in the quarter ending 30 June 2022 but posted a six percent increase in retreading volumes.

Rising prices of goods and services, agricultural inputs, and basic commodities were also negatively impacting business operations, as disposable income were being eroded by inflationary pressures, it said.

Rising prices

In a latest trading update, the firm said foreign currency inadequacies affected the importation of tyres from China and India.

However, during the period under review the company noted growth in premium tyres and retreading volumes premised on availability of market driven products.

“Retreading volumes increased by percent when compared to the same period last year, as the company continues to offer value-added services to support retreading customers,” it said.

foreign currency

“Volumes for premium tyres grew by 36 percent during the period under review when compared to Q1 2021/2023.”

The company said 8 786 new tyres were sold during the period compared to 11 952 in the corresponding period last year while 3 479 retreaded tyres were sold compared to 3 267 in the same period last year.

Also, services volumes for the period decreased by 18 percent compared to the same period last year, as power outages affected branch operations.

Despite the challenges, the tyre company said it was optimistic that measures being implemented by the Government will stabilise the local currency and build market confidence going forward.-chronice.l.zw