After the steel costs and interest rates, it’s the tyre industry that intends to hike its prices. Car industry in India is already facing tough times. Although there had been budget sops for the small cars but things have not been looking to so bright.
Car makers have been forced to hike their car prices to keep up the manufacturing costs. However, the market conditions, increasing inflation has made it tough to take a bite. Now the trye makers have announced that they shall be increasing the prices.
Indian Tyre makers have announced that they are likely to hike their prices in next 2 months to combat the rise in rubber prices. Major tyre makers like JK tyres and Ceat had already increased their prices by 5% earlier this month while it was only 2% for MRF.
Rubber prices constitute 60% of the manufacturing cost while making tyres. These have risen by nearly by 22% this year. This has forced the tyre makers to review their pricing strategies and keep up their manufacturing costs.
"We are hoping that in one to two months prices will have a sobering impact but if that does not happen, we will have to go up again, there is no choice", says Paras Chowdhary, Ceat's MD.
