The End of the Spare Tire: Cost-Cutting Measures by Car Manufacturers.

According to Carscoops, a Tesla electric car owner recently complained about the inconvenience caused by the absence of a spare tire in their vehicle.

In a post on Reddit, the owner shared their experience of dealing with multiple tire issues and realizing that the provided tire repair kit was not as effective as expected. As a result, they decided to add a spare tire to the trunk, even though the Tesla was not initially designed with space for one.

Eliminating the spare tire is one of the cost-cutting measures chosen by automakers, which helps reduce the selling price of the vehicle.

Eliminating Spare Tires to Cut Costs

A survey conducted by the American Automobile Association (AAA) found that the percentage of new cars sold in the US without a spare tire increased from 5% in 2006 to 36% in 2015. Similarly, India’s motor vehicle regulations no longer mandate the inclusion of a spare tire.

Purchasers of the Tesla Model 3, Kia EV6, or BMW iX3 will not find a spare tire in their vehicles. Instead, these cars come equipped with a tire repair kit or run-flat tires, which can allow for an additional 50 miles of driving even when completely deflated.

Run-flat tires are also offered as an alternative to spare tires in most luxury car models, such as the Porsche Macan and Mercedes-Benz S-Class.

The use of run-flat tires eliminates the need for a spare tire. Illustration: Boi Ha.

While automakers often justify the removal of spare tires by citing weight reduction, performance optimization, or the need for more space for batteries (in electric vehicles), cost-cutting is also a significant factor.

According to an estimate by LA Times, providing a spare tire and the necessary tools for tire changes in case of emergencies can add $100-$300 to the cost of a vehicle, depending on the model.

On the other hand, providing customers with a tire repair kit is significantly cheaper. For example, the official Tesla tire repair kit, which includes an inflator and sealant, can be purchased online for $60-$80.

However, the elimination of spare tires does not necessarily result in lower car prices for consumers. This practice primarily benefits the manufacturers by reducing production and assembly costs.

The absence of a spare tire at the rear is a notable change in the 2020 Ford EcoSport, which was previously available in Vietnam. Image: Ford.

In Vietnam, automakers do not typically offer options for including or excluding a spare tire for each model. For instance, when Ford EcoSport underwent a facelift and was reintroduced in 2020 without a spare tire, the price difference between the old and new models did not seem to be significantly affected by this change.

Local Assembly and Downgraded Equipment

When the Skoda Kushaq made its debut at the VMS 2024 exhibition and was confirmed for imminent release in Vietnam as a locally assembled model, many anticipated that this European SUV would be competitively priced.

Unlike the Volkswagen T-Cross, which was previously priced over 1 billion VND, the Skoda Kushaq entered the Vietnamese market in the B-segment SUV category with a starting price of 599 million VND. This price point rivals many Korean and Japanese models in the same segment and is more accessible than another European SUV, the Peugeot 2008 (starting at 829 million VND), and significantly more affordable than the imported Japanese Subaru Crosstrek, priced from 1,098 billion VND.

The Skoda Kushaq is a European SUV with a starting price of under 600 million VND. Image: TC Motor.

Local assembly is believed to be the primary reason for the Skoda Kushaq’s competitive pricing. Previously, Skoda’s older SUV models, the Karoq and Kodiaq, were introduced to Vietnamese customers as fully imported vehicles from Europe and were priced in the billions.

Another notable example is the Suzuki Swift, which recently returned to the Vietnamese market with a change in its country of origin from Thailand to Japan. Despite predictions of a significant price increase due to the higher import tax on Japanese cars (45%) compared to those from Southeast Asian countries (currently tax-exempt), the new Suzuki Swift is priced at only 569 million VND for the single-tone color version and 577 million VND for the two-tone color version. This represents only a slight increase from the previous model’s price of around 560 million VND.

The new Suzuki Swift’s price increase is minimal despite the switch to Japanese imports. Image: Dan Thanh.

Regarding the new Suzuki Swift’s pricing, experts attribute it mainly to the use of the Z12E 1.2L MHEV engine, which is not overly expensive, allowing Suzuki to offer the Swift at an attractive price point despite the higher import tax from Japan. While customers eagerly await the availability of Swift models with larger 1.4L or 1.6L engines, as offered in other international markets, the introduction of these engine options would likely result in a higher starting price than the current 569 million VND.

To offer more affordable versions of their models, automakers may also opt to reduce or downgrade equipment, or offer manual transmission instead of automatic. Examples of this strategy include the MG G50 with a manual transmission option, the Omoda C5 Luxury, and the Isuzu mu-X B7.

The Geely Coolray Standard version follows a similar approach, featuring fabric upholstery instead of leather and omitting front sensors. Additionally, by introducing older generations of the Coolray instead of the recently upgraded model in Malaysia, Geely has been able to maintain competitive pricing in Vietnam. It remains to be seen when the upgraded Geely Coolray will be released in Vietnam, but a significant price shift is expected once the Geely-Tasco factory is operational.

In summary, automakers employ various strategies to reduce costs during the production and assembly of vehicles or specific models. However, customers do not always benefit from these measures, as illustrated by the inconvenience caused by the absence of spare tires.

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