Tyre Firms to Hike Prices Afresh

Indian tyre manufacturers are set to increase prices following further increase in rubber prices. The recent most recent hike is said to be 1.5-2 per cent, according to India’s Business Line newspaper.

Over the last 13 months, tyre prices have gone up by 15 per cent for the OE segment, and 7 to 8 per cent for the replacement market, which mostly comprises truck tyres.

During the same period, the price of natural rubber surged by 58 per cent from 52 rupees/kilo in January 2005 to 82 rupees/kilo at the beginning of February. However, manufacturers said the impact on the bottom line would be minimal, as the increase was being passed on to customers through regular price hikes.

In this respect the manufacturers seem to have been focusing their attentions on the export markets. A K Kinra, finance director of J K Industries, told the newspaper: “Apart from the local demand for tyres, the export market was also turning out to be very lucrative – in terms of price realisations.” In the last two years, domestic price realisations have moved up by 12 per cent, while it has increased by 20 per cent in the export market, he added.