JK Tyre to Up Prices

According to JK Tyres’ CFO, A K Kinra, a 7 – 8 per cent price increase should offset increased rubber costs. “The increase in the cost is very high. There is no way the tyre industry can sustain on its own, so to take care of that cost increase, it has to go for a price increase. That has compelled us to increase tyre prices also,” Mr Kinra told India television news sources.

“In Malaysia, rubber prices have gone up as much as about 85 per cent in one year. I think the same phenomenon is happening in India. Rubber constitutes as much as one-third of the cost of raw materials. If that is the component of rubber in a cost of a tyre, and if this is the cost increase, then the impact on the selling prices will have to be there correspondingly,” he continued.