Raw material costs push up Indian tyre prices

Rising raw material costs have led to Indian tyre manufacturers raising prices by up to two per cent this month, according to the country’s Automotive Tyre Manufacturers’ Association. Natural rubber prices rose by 40 per cent over the past year, and synthetic rubber prices by 50 per cent. Unexpectedly high demand from the tyre industry – which uses more than half of the rubber produced in India – and heavy rainfall affecting rubber tapping have contributed to the increase in costs, part of which has been passed on in higher tyre prices.