Ascribe rise to spiralling cost of rubber
TYRE COMPANIES MICHELIN, JK Tyre and Ceat have hiked the prices of their products across categories by two to four per cent from July to offset surging rubber prices.
Michelin had already raised the prices of their products by four per cent in May. This innovator of radial tyres entered India in 2005. However, the prevalence of radials in India is still below 15 per cent compared to the nylon segment. Michelin expects the segment to reach 50 per cent of the total tyre market by 2020.
JK Tyre & Industries also hiked the price of tyres by two to three per cent across categories, but said they may keep them at the present level.
Ceat also raised the prices of its tyres by 2-2.5 per cent and expected its margins to improve from September quarter due to a fall in the price of rubber. They have no plans to raise tyre prices further.
