Tyre firms are gearing up for a price war after a new entrant promised 10% savings for fleets.

Tyreserve, which launched this month, will be chasing sales from market leaders Kwik-Fit, ATS Euromaster and National Tyres and Autocare. It follows General Motors' launch of Fit4Fleet.

Managing director David Goodyear said: “The virtual duopoly that Kwik-Fit and ATS enjoy has become a little too cosy. We want to shake the market up.

“Make no mistake, this year will see tyre savings for fleets through increased competition in the market and we have taken the lead,” he added.

Tyreserve, which has a network of 650 independent outlets supported by 200 mobile units, claims it can save fleets 10% on tyre costs over 12 months by using the internet to reduce overheads. The Coventry-based firm's website – www.tyreserve.com – allows fleets to book jobs, track payments and review their accounts.