Tyre Prices to Go Up: O S Kanwar

(India/Rubber Asia) Indian tyre prices are likely to go up by 4 to 5 per cent in the coming days, according to Mr. Onkar S Kanwar, chairman of Apollo Tyres Ltd. Rocketing prices of raw materials such as natural rubber, carbon black and other petroleum products, plus the existing duty structure which impacts the profitability of companies are the reasons for the impending tyre prices hike, he says.

Tyre makers are trying to tide over the problem by enhancing productivity and reducing costs. However, they are forced to pass on a part of the burden to consumers, says Mr Kanwar.

According to him, the government has to look into the inverted duty structure and reduce the duty of natural rubber and increase the duty of the finished products.

Apollo Tyres is planning to make 4,000 to 5,000 million rupees of investment, most likely in Hyderabad and Maharashtra, in the coming days, according to the chairman.