Silverstone, UK – The UK referendum decision to exit the European Union in June has not had a major, direct impact on the UK tire market, according to Chris Logan, national accounts manager at UK distributor Stapleton’s Tyre Services.
UK tire prices up 5% since Brexit
“In terms of the overall UK market, there has been very little impact from Brexit and we are not expecting to see anything ongoing,” Logan said at a 31 Aug launch event for a new Maxxis tire at Silverstone race track.
But, he added that the devaluation of sterling following the Brexit vote had led to prices are going up generally across the tire industry. “Between now and three months ago we are probably seeing an estimated 5-percent difference in prices, purely on currency.
"That is [comparing pricing] pre-Brexit to now and coming months.”
Tire-pricing, both in the Eurozone and the UK, is closely linked to currency exchange rates against the US dollar, noted Derek McMartin, managing director of Maxxis, speaking at the same event.
“European brands will trade in Euros in Europe, but whatever happens the raw materials they buy will be in dollars, which will always be the benchmark here,” he explained.
At Silverstone, Maxxis launched the Premitra HP5 as a new flagship passenger car tire for the European market, and its first tire to sport a full-silica tread compound.
“With the cost of tires in general rising, the passenger car market is calling out for a tire that performs as you would expect a premium brand tire to but offers consumers a more value-for-money price point,” said the Maxxis MD.