Federal Announces Further Price Increase

Federal & Hero brands have implemented a further price adjustment in advance of August 2008. The last price hike, which has only just been announced reportedly only offsets the increase of cost in the fourth quarter of 2007. Company representatives told T&A: “We are…forced to adopt up to 10 per cent for our product of Taiwan origin and 16 per cent for our Chinese made products. Cost hike of raw materials and energy is the deciding factor behind the price rises.” Federal blamed disproportionately fast labour cost increases for the 6 point higher hike on Chinese produced tyres.