At Deldo they are expecting a shortage of tires

One of the exhibitors at The Tire Cologne exhibition was Deldo, a Belgium-based company that is one of the largest wholesale companies for tire sales in Europe. The company's sales director, Tom Van Deyk, shared his insights on the current situation in the tire market.

"The situation is extremely complex," he noted. "We are seeing a significant increase in demand for budget tires, and this trend has been ongoing for several years. However, due to inflation, decreased purchasing power, and consumers' reluctance to spend large sums of money, the popularity of economy-class tires has increased dramatically. At the same time, the quality of tires in this category has improved significantly, making them an attractive option in terms of price and quality, and narrowing the gap between them and premium brand tires."

According to Van Deyk, demand is so high that Deldo is unable to meet it, and the company is "forced to disappoint customers who have to settle for less product than they would like." "As for our private brands Imperial, Minerva, and Tristar, we have even banned our sales representatives from signing new agreements. Demand is so high that we cannot meet it, so we have become victims of our own success," he added.

Last year, problems with tire supplies from Asia began due to Houthi attacks on cargo ships in the Suez Canal. "Even today, the attacks are still forcing ships to go around Africa, which extends the journey by two weeks, and the return journey by another two weeks," says Van Deyk. "This is a serious problem, as delivery times are increasing and there is a shortage of containers in both Asia and Europe. The difficulties will persist for the next four to six months. Container prices have risen from $2,000 to $7,000, and now they are talking about $10,000. These conditions have a strong impact on the final cost of tires, but even if you accept them, it can be extremely difficult to get containers. The next winter season will be a test for everyone, as the combination of high demand, product shortages, and price increases means that no one will have the necessary number of tires."

How does Deldo solve this problem? "We work with our partners," noted Van Deyk. "We have very close cooperation with factories, and it is clear that thanks to our private brands, Deldo has an advantage over its competitors. We make decisions ourselves. Now we are increasing production on our partners' facilities, and the expected growth is 10-15%, and we are also working with other factories where we already produce certain tire sizes."

Regarding the products the company intends to focus on, Van Deyk replied: "Over the past 10-15 years, we have actively developed the Imperial, Minerva, and Tristar brands, and over the past two years, we have significantly invested in promoting the Atlas, Fortuna, and Superia brands. It's enough to say that we have released new all-season tires that will soon be available in 160 sizes, and we have also improved the Euro-marking ratings of our summer and winter tires. In addition, we are releasing new sizes, with about 500 for each brand. While the development of Imperial, Minerva, and Tristar is already in full swing, the promotion of Atlas, Fortuna, and Superia is just beginning, and companies that need affordable tires with good quality and a wide range of sizes already know about them."