Retreading Business spoke with Santiago Avellán, President of ANRE Ecuador (the Ecuadorian Tyre Retreading Association), who shared his insights into the opportunities and challenges confronting the retreading sector in Ecuador, as well as ANRE’s strategic priorities for the forthcoming year.
Significant Challenges in Retreading
This year presents significant challenges for Ecuador’s tyre retreading industry, driven by three key factors that influence the sector’s outlook. One of the most pressing issues is the growth of the informal sector, which now accounts for approximately 30% of the market. The rise of unregulated tyre products, although often appealing due to their lower prices, poses serious safety risks that many hauliers remain unaware of. In addition to safety concerns, these products incur hidden long-term costs linked to reduced durability and performance. A lack of enforcement from regulatory authorities has facilitated the expansion of this segment, placing formal businesses—those that comply with strict quality and safety standards—at a competitive disadvantage.
Another major issue affecting the industry is the impact of Ecuador’s foreign exchange tax (ISD). The government has recently revised its tariff regulations to boost tax revenues, removing exemptions for several categories of goods. Retreaded tyres were among the items excluded from the 5% ISD exemption, resulting in increased production costs and diminished competitiveness of retreaded tyres compared to cheaper, new tyres imported from Asia. ANRE Ecuador is actively involved in negotiations with the government to reinstate these raw materials on the list of exemptions to restore price competitiveness and safeguard the viability of the domestic retreading industry.
Economic instability and road insecurity represent additional obstacles for the transport sector, particularly affecting small and medium-sized fleets and independent truck owners (hombre-camión). Financial pressures continue to mount, impacting cash flow and disrupting the payment chain between transporters, tyre suppliers, and retreaders. These economic difficulties threaten the sector’s stability, making it even more crucial to strengthen support for formal businesses.
In response to these challenges, ANRE Ecuador has outlined a series of actions for 2025 aimed at protecting and strengthening the retreading industry. A key priority is combating informality through awareness campaigns and closer collaboration with regulatory authorities. By educating transporters on the risks and long-term costs associated with unregulated tyres, ANRE hopes to promote higher safety standards while supporting the formal sector.
Equally important is the effort to secure the reinstatement of retreaded tyres in the ISD exemption list. This move would help reduce production costs and improve competitiveness against imported alternatives. Advocacy with government officials remains a critical aspect of ANRE’s strategy for the year.
Beyond regulatory efforts, ANRE Ecuador also emphasises enhancing financial education within the transport sector. By training hauliers in improved financial management practices, the association aims to stabilise the industry’s payment chain, reducing default risks and promoting long-term sustainability for transporters and tyre retreaders.
For ANRE Ecuador, 2025 represents a crucial opportunity to strengthen the country’s retreading industry through formalisation, policy advocacy, and capacity-building initiatives. By tackling these challenges head-on, the sector can continue to play a vital role in Ecuador’s transport economy while advancing safety, sustainability, and economic resilience.
