According to a report by Nanyang, tyre and battery prices in Malaysia are expected to go up in 2017, with imported new and reconditioned tyres (except those from China) said to be priced between 5-10% more than before. Meanwhile, the price of tyres from China will be hiked by more than 10%.
One of the reasons behind the hike, said Wu Suxing, president of the Johor State Tyre Dealers Association, is due to increasing price of raw materials, particularly the SMR20 (Standard Malaysian Rubber) rubber.
In January, the average price of SMR20 (data from the Malaysian Rubber Board) was 466.89 sen/KG, but has since progressively increased to an average of 837.89 sen/KG in December. The depreciating Malaysian ringgit is also cited as a factor for the tyre price hike.
Among the brands that sell imported tyres in Malaysia include Bridgestone, Michelin, Falken and Yokohama, while other companies such as Goodyear, Toyo, Silverstone and Continental have local factories here, as mentioned in the report.
Aside from tyres, the price of batteries is also expected to go up next year by up to 10%, due to not only the depreciating ringgit, but the soaring price of lead from US$1,800 (RM8,072) per metric tonne to about US$2,500 (RM11,211) per metric tonne.
Wu Suxing also mentioned that tyre/battery suppliers usually have an inventory that lasts for two months, so customers may still be able to purchase new tyres/batteries at current prices. He added that some suppliers might choose to absorb the price hike themselves.
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SMR20 Malaysian rubber? If Malaysian rubber price increase? Is it mean that those imported Michelin, Bridgetone, Falken and Yokohama is made from Malaysian SMR20 rubber?
Sorry ya i not really know about this. Just asking hehe.
Malaysian rubber prices have increased therefore the domestic cost of manufacturing tyres have also increased. At the same time, assuming global rubber prices have also increased, the depreciation of ringgit resulted in the increased cost of imported tyres. Either way, whether it’s imported or local made, tyres will be more expensive unless manufacturers absorb the cost.
Ha ha ha. There were idiots who said ringgit jatuh good for our exports. Well ringgit jatuh, see what happens to our goods….everything goes up.
The ringgit jatuh cause Mat Salleh has pulled all their money out of Malaysia. They now categorize us as Congo or Nigeria. A renegade country.
Until corruption is sorted out, ringgit will continue to slide. Everything will go up in price. Education, healthcare, food, car parts, books etc etc
Need to keep extra stock for usage…
Most likely yes. I know one european brand which uses Malaysian rubber in all their manufacturing plant worldwide. If not mistaken the next best rubber is from Indonesian.
Very poor reason to hike tyre prices. Taukehs tailos, last time rubber price rock bottom also no reduce price u increase profit summore.
No graph also can tell how much tyre price that time. And now u cry murder?
Now i know why communism is great. I am starting to love Mao even more
Agree with you bro
The tyres manufacturers are taking Malaysians for a ride. We still one of the largest rubber producers in the world. And why is our tyres still so expensive?
Most imported tyres are Made in Malaysia …..so how prices can go up? 90% of raw material is from Malaysia itself?
BN cronies said up price then BN ministry same have benefited so Win-win situation for cronies… so Rakyat lose all (end of story).
We EXPORT raw material and IMPORT finished products, nothing wrong with that, it is called global trading however I believe that the price increase, in this case, is more due to the depreciating ringgit than other factors suggesting that maintenance/ownership of vehicles will only get higher.
That’s seems to be the problem with Msia. We produce raw materials only to purchase processed products at higher price. Just like water we supply to Singapore.
If bolehland manufactured later say no quality. How?
Well, no matter use imported or local raw material, the price still increase.
Sudden Malaysia Rubber price increased?! It is because of MY currency drop, then oversea company quickly buy to keep stocks.
What else is expected from Malaysia? We are a country that only know how to increase price to increase profit. We don’t know how to improve productivity and efficiency. That is why, the more we ‘maju’ the more difficult our lives, because our cost of living is getting higher.
Proton should start selling 3-wheeler cars just to take advantage of increasing tyre price .
why proton only.. where perodua? they shall sell roda 2…
lol..have you seen car with only 2 tyres?
you must have watch a lot of mr. bean
What about local tyre Continental? It’s not imported and the rubber comes from msia. By right it should stay at same price.
check out the price in neighbor countries…from Thai to SG..now you see the lousy excuses…
Well malaysia u know prices never go down only up up and up
worry not, 1st Jan price of ron95\95 all would go down 50cents per litre!
Hahahaha…ya smr20 price are increase now. But at early year 2016 smr20 price decrease like hell until malaysian rubber industries effected. No price reducing for tyre. Capitalist business!
now drifting will cost more…. sucks…
No big deal. Just use Continental, Toyo or Goodyear tyres. They are very good brands already anyway
normal la…every year…1 JAN is a price hike day…it just slightly worst next 1 JAN…
“In January, the average price of SMR20 (data from the Malaysian Rubber Board) was 466.89 sen/KG, but has since progressively increased to an average of 837.89 sen/KG in December. The depreciating Malaysian ringgit is also cited as a factor for the tyre price hike.” The SMR20 hike most probably due to the weaken MYR as well.
Membebankan rakyat. Higher batts = more stalled cars on streets. Higher tyres = more accidents on roads. Somemore add gst on these items.
We replace our car tires every 20k/km or 2 years. We replace our car batteries every 18/24 months. That is part & parcel of maintaining our car.
That is the least of my concern bcos our daily bread, cooking oil, meat, fish, flour & basically all goods & services are escalating by the month if not weekly.
Brace yourself for tougher time ahead bcos there will be more up’s than down’s(price wise) not the economy. Our car sales are down, banks are closing down some branches & there are more bankruptcies than ever.
Sorry folks, 2 bore U all 4 reading bcos there is NOT enough space for the Negative that I will stop here. Happy reading & commenting folks.
good point!