By Oliver Hall
Two leading tyres manufacturers in India have announced they will raise prices to offset the surge in raw material costs.
Apollo will put its tyres prices up by 5-10%, while JK Tyre will raise prices of its passenger car tyres between 4-6% from 21st December.
The executives of the two companies broke the news to the Dow Jones Newswires this morning after the cost of rubber has climbed faster in recent weeks.
Prices of natural rubber – which make up 40% of the total spend on raw materials for manufacturing tyres – have climbed by about 30% in the past two weeks, according to Apollo Chief Financial Officer Sunam Sarkar.
He said: “They (rubber prices) have been rising in the past few months, but have shot up dramatically in the past few weeks.”
In India, two other tyres makers MRF and Ceat confirmed they are yet to decide on whether to introduce price rises.
MRF raised tyre prices 3%-4% for cars, two-wheelers and tractors in November, but executive vice president Koshy Verghese said: “There is still a cost push because rubber prices are high. However, we haven’t decided how to handle the cost-push.”
The announcement follows similar price hikes in the US where global tyre giants, including Bridgestone, Continental and Goodyear, have reacted to rising costs.