JOHOR BARU: Tyre dealers in Johor and possibly in other states are facing challenges in doing business after claims emerged that some businesses are involved in a price war to gain more sales, says an association chief.
Johor Tyre Dealers Association chairman Desmond Kew Tong Yee said some dealers are lowering the price of tyres in a attempt to undercut one another to gain more sales.
This has created an unhealthy competition within the industry, he added.
“For example, when I sell my tyres at RM100 each and another dealer sells them at RM90, I slash my price to RM80 to stay ahead.
“This practice is currently happening in Johor ... It is not good for the industry.
“Besides the price war, some dealers are also competing among themselves on who can sell ‘fresh’ tyres to their customers, which means some of them are selling tyres produced within this year,” he said in an interview.
He added that this behaviour could lead consumers into believing that newer tyres are the better choice, especially when prices are much lower.
Kew said tyres would go into a “stable” state about eight to 12 months after production.
“Simply put, those looking to install new tyres this year should choose those produced last year as they are deemed to be the most durable because they have gone through the stabilising period.
“Tyre dealers should be more responsible and convey the right message to consumers instead of doing things that may be harmful to others,” he added.
Meanwhile, Malaysia Association of Tyre Retreaders and Dealers Society president Goh Kiang Weng said purchasing tyres is not like choosing fruit and vegetables.
“Unlike food where we usually want the freshest items, tyres are seen differently.
“As tyres are made of rubber and other chemical components, it usually takes up to a year for them to set and harden after production.
“This helps to give the tyres a longer lifespan and provides them with more grip when turning the corner on roads,” he said.
He warned that new tyres that do not go through the stabilising period may turn out to be softer and their treads are prone to wearing out sooner.
Goh said that many dealers do not take time to explain this to their customers.
“Ultimately, it’s up to the consumer to decide on the products they want,” he said.
Asked whether the tyre price war is also happening in other states, Goh said he believes so.
