• Total volume performance went down by 20%
  • Overall new tyres decline by 26%
  • Services volumes shed by 18%
  • However, volumes for premium tyres grew by 36%

Harare- Largest distributor and retailer of new tyres and tubes for the automotive industry in Zimbabwe, National Tyre Services registered a 20% decline in total volume performance to 41 376 for the first quarter ended 31 June 2022 from 51 855 recorded last year during the same period as foreign currency scarcity and power blackouts continued to define the local operating environment. 

Overall new tyre sales volumes declined by 26% compared to the same period in 2021 due to foreign currency inadequacies affecting the importation of tyres from China and India.

 Services volumes decreased by 18% as power outages affected branch operations during the period under review.

The provision of sufficient electricity by the power utility, ZESA remained a nightmare during the period due to ageing power plants at Hwange Thermal Power Station and recurrent technical faults at Kariba Power Station. 

The power crisis was also exacerbated by the scarcity of foreign currency as ZESA failed to clear the debt owed to Eskom of South Africa and Mozambique.

However, growth was realised in premium new tyres and retreading volumes during the period under review, premised on the availability of market-driven products.

 Retreading volumes increased by 6% compared to the same period last year as the Company continued to offer value-added services to support retreading customers while sales volumes for premium tyres grew by 36% ahead of 2021’s first quarter. 

“National Tyre Services is implementing effective strategies to serve the premium tyre market segment,” the Company said in a trading update.

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