Indian Tyremakers Pass On Excise Duty Cut

A number of Indian manufacturers have lowered domestic market prices following a lowering of the excise duty charged upon tyres. The Indian government announced on February 24 it would reduce the excise on a range of consumer products from ten per cent to eight per cent in order to stimulate demand and boost the economy.

Apollo Tyres is passing on the benefit of the lower excise duty as of February 25, 2009 on all its replacement market commercial radial and cross ply tyres. “We should all support this proactive move by the government, which will boost the manufacturing as well as other sectors,” said Onkar S Kanwar, Apollo Tyres Ltd chairman and managing director. “We, on our part, will be passing on this reduction to our customers.”

JK Tyre & Industries has cut truck tyre prices up to 1.5 per cent, the third price reduction the company has announced within a three-month period. Ceat Ltd has also announced price reductions, while as of February 25 MRF has yet to make a decision regarding cuts.