"Why do tires cost so much these days?"
Many people get sticker shock when they buy tires these days.

Because our Motor Works, Inc. clients deserve a clear explanation, we investigated on our own and found some interesting (and somewhat disappointing) data found on the Bureau of Labor Statistics website as well as the Tire & Rim Association. It seems that tire prices have risen 68% since 2001. These increases seem to be driven by three factors:

A tariff on tires from China
At the end of September 2009, the government imposed a 35% tariff on the price of tires imported from China. This was in response to a rapid rise in Chinese tire imports, from 27 million in 2006 to 46 million two years later . The tariff was good for a couple of domestic manufacturers, but most companies are building tires all over the world these days . Tire prices started rising dramatically as soon as the tariff began.

The rising price of rubber
Demand for rubber has met or exceeded supplies for the past 3 years, decreasing stockpiles 6 percent. Rubber futures prices continue to rise around 10% a year. See the Producer Price Index for Rubber.

The proliferation of tire types and sizes
Tire manufacturers and automakers have created a kind of monster where we now have a different size tire for almost every car. According to the Tire & Rim Association, in 1977, 10 tire sizes covered 89 percent of the market. From 2003 to 2008, the number of tire sizes increased 42 percent to 519 sizes for cars and light trucks. Drivers’ preferences for large, high-performance, low-profile tires have prompted a profusion of tire sizes, while reducing the mileage lifespan increasing their costs. Vehicle designs now employ larger diameter tires, not the old 14 or 15-inch but a 17- and 18-inch tires, even on smaller and mid-sized sedans and SUVs. These tires have higher speed ratings and lower mileage ratings, which not only means they’ll cost more but also need replacement more often.

If ever there was a time where performing regular, routine proper maintenance helps you keep your costs down, it would be now. We at Motor Works, Inc., inspect your tire condition and pressures every time you visit. We are doing our best to hold the line on these increasing costs. An educated client makes better decisions.

Thanks to Mike Winokur, Operations Manager at Motor Works, Inc for his in-depth investigative work on this subject. We have found these conditions to be true for the Honda, Acura, Toyota, Lexus and Scion vehicles that make up our Motor Works clientele.