The on-going boom in the Indian car market has also bought a slew of price increases from auto-component makers. Domestic tyre makers have indicated that they would be increasing prices by up to 4 per cent this month, citing rising costs of natural rubber and a high demand from the booming automobile industry.
Chennai-based MRF Ltd has already raised prices by 2.5-4 per cent from August 31 onwards, while Apollo Tyres has announced an increase which is yet to be implemented.
Ceat and J K Tyre are also expected to follow suit. A S Mehta, Marketing Director, JK Tyre, said, “We’re watching the market. The increase should be around two-four per cent as well.” However, Apollo Tyres seems to be watching the trend before deciding on a price hike.
Since January this year, car tyre makers have already raised prices by 10-14 per cent in four stages. A hike in March was due to the increase in excise duties, while the others were on the back of rising natural rubber costs.
According to Rubber Board, the monthly average natural rubber (RSS-4) prices have gone up 75 per cent year-on-year in August to Rs 179.52 a kg. Around the same time last year, the prices were at Rs 102.50 a kg. From Rs 137.72 a kg in January, rubber prices reached a high of Rs 182.15 in July.