NTS enjoys high demand for tyres
NATIONAL Tyre Services (NTS) says positive developments in the domestic economy, including a bumper harvest anchored by a record grain output and slowing inflation, have spurred demand for tyres.
NTS, a Zimbabwe Stock Exchange (ZSE) listed company, is the largest distributor and retailer of new tyres and tubes for the automotive industry in Zimbabwe, with a national footprint of 14 retail outlets.
In an update for the quarter to June 30, 2021, company secretary Stewart Mandimika said the business was poised for further growth with the economy set to be opened fully once herd immunity is achieved on the back of speedily progressing vaccination programme.
“Notwithstanding the challenges of the Covid-19 pandemic there were notable improvements in the economy, which included good grain harvests and a drop in the consumer price index, for the fifth straight month to 106,6 percent in June 2021. These positive developments spurred demand for tyres,” Mandimika said.
He said during the period under review, the increasing number of Covid-19 pandemic cases resulted in the Government imposing another lockdown while cross-border and inter-city bus movement remains banned, which negatively affected a key market segment for the tyre business.
NTS also focuses on re- lugging tyres used in the agricultural and earthmoving sector and the procurement of truck tyres for the Zimbabwe transport industry.
Popular tyre brands sold by NTS include Dunlop, Firestone, Bridgestone, Yokohama, Pirel l i, Bandag, Regal and Comforser.
Mandimika said in the quarter under review, New tyre volumes increased significantly by 162 percent when compared to the same period last year, driven by stock availability and focused marketing initiatives.
“Overall unit performance grew by 163 percent during the period under review as the Company employed survival strategies under this coronavirus operating environment,” he said.
Mandimika said retreading volumes grew by 75 percent compared to the same period last year due to increasing demand from retreading customers.
He noted that trucking operations improved during the period under review compared to the same period last year as the Government imposed less restrictive measures to allow trucks to operate during the Covid-19 hit trading environment.
“A 160 percent growth in tube volumes was recorded in the period under review when compared to the prior period due to the high demand of tubes from the agriculture sector.”
Mandimika said availability of foreign currency to import stock remains key for sustainable business growth.
“Effective containment of the Covid pandemic will provide a conducive operating environment to promote volume growth, going forward,” he said, adding that the company remains optimistic that the budget will be achieved by the end of the trading year.