With the continuous increase in raw material prices and increase in the price of domestic natural rubber, tyre makers are expecting to hike prices on its product offerings.

An increase in tyre prices is expected to be in the range of 2 to 5 per cent on select tyre models.

“We are expecting the raw material prices to go up to 5 to 6 per cent during the quarter as compared to quarter 1. The increase in the prices of natural rubber is because of the increase in freight and imports. Transit time has gone up significantly in imports which has created availability concerns. This has led to the local natural rubber prices sold at a premium to international prices,” said Kumar Subbiah, CFO of CEAT Ltd to businessline. 

Earlier, companies had taken price increases in select categories during Q1 FY25 .

CEAT saw price increase of 1 to 2 per cent in select categories, Subbiah said. “However, that does not help us to recover the increased cost. We would be looking at more increases in due course of time,” he added. 

“We could manage earlier because of inventories but we are seeing an impact this quarter. We have taken a price increase earlier and are working on overall growth in the output market. The prices depend on the global demand, overall weather conditions are good and the production of natural rubber manufacturing is better. Crude is also to be watched on. If the raw material prices go up further then we will have to take price increases,” Anuj Kathuria, President (India), JK Tyre & Industries told businessline 

Lowering impact

“Presently the raw materials are at a very high level and freight has paid its role. We look forward to correction and dip in the prices of raw materials with the availability of containers and decrease in the Red Sea impact over a couple of months,” added Subbiah. 

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