Will tire makers raise prices this year? 9 companies weigh in

For the annual Mid-Year Tire Report, Tire Business reporters reached out to tire makers for their views on the latest industry trends, challenges and innovations emerging so far in 2023. The Mid-Year Report spans two issues (June 19 and July 17).

Here is an excerpt from what we gathered, along with links to the full-length stories.

After multiple tire price increases in the tire industry in 2022 — due largely from elevated supply and material costs — there was a sense that tire prices would settle in 2023. So far this year, they have.

We asked tire makers, "do you anticipate price increases this year?"

CEAT Specialty: "Following the COVID and post-COVID phase of increased material costs and unfavorable freight rates, we are presently back to normal material and freight rates. I expect the freight rates to remain at current levels for the next few quarters, thereby ensuring stability of prices," said Amit Tolani, chief executive of CEAT Specialty.

Continental Tire: "We do not currently foresee the environment supporting (or requiring) additional price increases," said Jochen Etzel, chief executive officer at Continental Tire the Americas.

Giti Tire USA: "Because of the factors with the economy, supply chains and regulations facing the industry, the prices of tires will inevitably go up at each level of the supply chain," said Kenny Lee, vice president of sales, consumer tire sales for Giti Tire USA.

Kenda Tire: "Kenda has approached pricing based on the outside market factors, which have been discussed related to overall supply and demand. Corporately, we have many programs in place to reduce costs and off-set outside factors, which allow us to price appropriately for our brand and product value. Across our product segments, Kenda has tried to limit pricing impact to our customers to provide them the best opportunity to recover margins above the industry average while providing the end-user with a high-performance product. As we move through 2023, we will continue to be cognizant of outside factors that may affect pricing and will respond appropriately in the best interest for both Kenda and its customers," said Brandon Stotsenburg, vice president, automotive, for Kenda Tire USA.

Kumho Tire: Kumho doesn't foresee price increases this year, Shawn Denlein, president of sales and marketing at Kumho, said, adding there will be "more realignment" in the industry as prices from outside influences — like supply and materials caused by the pandemic — subside.

"The market took a tremendous amount of increase over the supply-chain issue and all of the costs. So we saw a lot of price increases, on top of price increases," Denlein said. "I would expect to see more realignment throughout the year in certain segments and sizes."

Nokian Tyres: "We cannot share specifics about our pricing strategy, but we will continue adapting as dictated by costs and the needs of our customers," Tommi Heinonen, vice president, North America, for Nokian Tyres P.L.C.

Pirelli Tire North America Inc.: Pirelli recently increased prices in the U.S. in January, and according to Pirelli Tire North America Inc. CEO Claudio Zanardo, another price hike is likely soon for the Milan-based tire maker. “We are still working on it and adapting a little more,” Zanardo told Tire Business at a recent Pirelli event. “At this point, there is still inflation, and the demand is so high on our (large-diameter rim) products that we are trying to fulfill that demand.”

Prinx Chengshan Tire: "We anticipate stable pricing unless there is an increase in our logistics costs," Samuel Felberbaum, president of Los Angeles-based Prinx Chengshan Tire North America Inc.

Sentury Tire: "Sentury stays competitive the moment anything fluctuates in terms of pricing. As always, we work closely with our partners in the event of any price increases. Our goal is always to remain competitive, and we value our relationships with our partners," Nicholas Gutierrez, territory sales and marketing director at Sentury Tire USA.