Tyre-prices advance faster than the tyres!

Owing to steep increase in input costs, Indian tyre major Ceat has increased its product prices by 2-10%. This price increase spans throughout the product range, with light truck tyres recording the maximum of 6-10% hike. The car radial prices will witness a marginal increase of 3-6%, which works out to about Rs.100 per pair. The price hike was inevitable, as the raw materials accounting for nearly 70% of the manufacturing costs, have shown an upward price trend for the past few months. In the last one year itself, the manufacturing costs have gone up by 10-12% due to the rising input costs. Though, passenger car tyre prices may not be an issue of concern, the Rs.1,000 hike in truck tyre prices is likely to cause resentment among truck owners.

For complete IIPM article click here

Source:- IIPM Editorial, 2006,

Editor:- Prof. Arindam Chaudhuri