Will The New EU Tyre Labels Affect Prices?
There has been some discussion whether or not the introduction of the new EU tyre labelling in November will affect pricing for consumers. As we get closer to the day the labels are required by law, it is looking like the current three tier pricing model won’t last long.
With in excess of 200 tyre brands estimated to be on sale in the United Kingdom, there is a wide range of prices and a lot of competition between the brands. The highest priced car tyres are approximately 60% more expensive than the average tyre, but all that could be about to change. The tyre labels add a new level because budget tyres can potentially achieve comparative results with premium brands.
Obviously the tyre labels only cover three aspects of the tyre’s performance and generally premium tyres will perform better in a variety of other performance indicators. However as these labels will be the most visible points, it may be that budget tyres feel justified in charging a bit more, while premium brands might feel pressured into reducing their prices.