Fleets facing unprecedented tyre inflation

Rising tyre costs are putting fleet managers under more strain than ever.

According to i247 Group, tyre prices will continue to rise, probably by double-digits, due to increased manufacturing costs and the switch to electric vehicles.

David Legg, Director of Tyres, i247 Group, a leading outsourced driver support and asset management provider, said: “The price escalation is substantial and we’re seeing two principal reasons for this. We’ve seen manufacturer price increases due to cost rises across materials, logistics, labour and fuel.

“These increases are then coupled with a significant change in the fleet mix where we’re seeing larger rim sizes and new, more expensive tyre technology to accommodate an increasing number of SUVs and electric vehicles.”

For example, it found a 246% increase in like-for-like tyre fit between a traditional Volkswagen Golf company car and its electric equivalent. Meanwhile, the popularity of SUVs with ever-increasing rim sizes is adding further inflationary pressure.

i247 Group adds that upstream cost rises are also having an impact, such as a rise in raw materials due to rubber shortages, while transportation costs – from escalating container shipping charges to diesel at record levels – are all adding to the price pressures.

Legg said: “We need fleet managers and drivers to be aware of the cost hikes we’re seeing. The challenges in both tyre and staff supply mean that it’s critical to book your tyre changes in advance to ensure your requirements can be managed as efficiently as possible. At i247 Group we’re watching the situation closely and advising our customers on cost-reducing actions and tyre policy changes.”