Tyre companies are significant part of the auto industries. It had been facing tough times since past few months but that seems to be easing a little. The tyre companies have reduced their prices for the second time in a month.
"We have reduced prices of truck tyres by Rs 400 in January in view of lowering of rubber prices. This is further to the price cut last month and is expected to boost demand," JK Tyres & Industries, president Arun K Bajoria said.
Tyre makers have reduced up to Rs. 1500 on trucks and buses and up to Rs. 500 on passenger vehicles. Earlier they had reduced their prices owing to the 4 percent reduction in CENVAT by the central government. Now the companies have again reduced their product prices due to the softening in prices of the raw materials.
Apollo Tyres Ltd , Chief, India Operations Satish Sharma, said, "The demand situation continues to remain extremely challenging. Off-take from manufacturers' remains weak. However, we hope that a reduction in prices will see some resurgence in the aftermarket."
Apollo, JK, MRF, Birla, Ceat, etc. have passed on their input cost savings to the customers by reducing their prices by 3-5 percent. There has been significant decline in the prices of natural rubber, crude oil, synthetic rubber, carbon black, nylon tyre cord and rubber chemicals which are essential ingredients for the tyre makers.