High Import Tariff Behind Rise in Production Cost, Price of Tires

One of the reasons behind the high tire production cost is the high tariff levied on imported raw materials, which also impacts tire price, a spokesman for the Iranian Tire Industry Association.
“The Ministry of Industries, Mining and Trade should apply the policy of reducing the import tariff on tire raw materials as it can noticeably curb the increase in customs exchange rate and production costs,” Mostafa Tanha was quoted as saying by Khabar Khodro.
“As about 70% of the final price of a tire include the cost of imported raw materials, a 5.5-fold increase in the customs exchange rate enforced on the import of raw materials will greatly impact the price of rubber.”
Tanha added that a 57% increase in labor costs and rising energy bills in factories is also expected to have a big impact on tire production cost and prices.