Major tyre manufacturers like JK Tyre and Ceat Ltd on Tuesday said they would go for a price hike of up to five per cent from May 1 to offset an increase in input costs due to the rise in natural rubber prices.
The companies, however, said the hike may not be sufficient to cover the deficit and there is a likelihood of a further increase in the months to come.
“We will increase prices across product categories by 3-5 per cent from May 1,” JK Tyre and Industries Director (Marketing) A.S. Mehta told PTI.
He said the continuous rise in natural rubber prices in national and international markets in the past few months has put a huge burden on the tyre manufacturers.
“The 3-5 per cent hike will only partially offset it. We may have to undertake further rounds of price increases in the next month or two,” Mr. Mehta said.
Similarly, Ceat Ltd also said it will be increasing the price of its products. “We have intimated our dealers about undertaking a hike of 3-3.5 per cent from May 1. Ideally, we need around a 10 per cent rise to offset input costs, but that is something which is not viable,” Ceat Tyres Managing Director Paras Chowdhary said, hinting at further upward movement in the months to come.
Most of the tyre players had carried out a similar exercise in January, when prices were increased by 2-4 per cent. Apollo Tyre had hiked prices across all product categories by a similar percentage earlier this month.