Second Round of Indian Price Hikes Proposed

Another hike in India’s tyre prices looks likely, in hot pursuit of last week’s initial 2-5 per cent increase (as reported on 6 June). News Sources report that the hike will be at the increased rate of 5-7 per cent, and will apply to all ranges, with rubber and crude oil prices maintaining record highs.

Speaking to journalists, AS Mehta, the marketing director for JK Tyres and Industries, commented on the export of India’s rubber, suggesting that the 20 per cent duty on imported rubber be cut to compensate for the lack of available domestic product.

The cost of this is particularly acute, since Chinese tyre makers can import goods with a comparatively low duty of 8.6 per cent. As previously reported, India has leapt from ninth into third position in countries importing Chinese tyres.