Apollo, MRF Lower Indian Market Prices

Indian market prices for Apollo Tyres’ products are set to drop by three to five per cent as of January 15, the company reports. The company has not made clear, however, whether these price reductions will be extended to tyres sold in export markets.

Prices have been revised in keeping with a softening of key raw material prices since September 2008, Apollo says. The company adds that since December the cost of both crude oil and natural rubber have resumed their upward trend, and the benefit of lower raw material prices is yet to be felt in the company’s bottom line. Despite this, Apollo states it has decided to take a proactive step in lowering prices for consumers.

“The demand situation continues to remain extremely challenging,” comments Satish Sharma, chief, India Operations, Apollo Tyres Ltd. “Offtake from OEM remains weak. However we hope that a lower price point will see some resurgence in the aftermarket.”

Prices for truck tyres manufactured by MRF Ltd have also been downwardly revised. The company said in a statement that lower prices had been made possible “due to a downward trend in the price of natural rubber.”