Ceat And Apollo Tyres To Hike Prices Of Tyres

To combat the surge in raw material costs, both Ceat and Apollo Tyres have decided to hike the price of their products. This move comes primarily because prices of key components like natural rubber have escalated significantly. Coupled with the fact that the value of the rupee has depreciated against the US Dollar, it has become essential to hike its products' prices.

Speaking to Acko Drive about the same, Kumar Subbiah, Chief Financial Officer & Executive Director Ceat Limited said, "The Crude prices are currently in the range of 83-84$ and hovered largely around 88$ to 90$ in the last 3 months which is an increase of around 6% to 8% higher than previous quarter."

This move was also influenced by the soaring price of crude derivatives, like synthetic rubber and nylon fabric. Both of these are integral components used in tyre production. "Natural rubber prices have moved up from Rs150 per kg to Rs 180 per kg in the last 5 months. Further Rupee has also depreciated to 83.5 to a US Dollar from 83 in the last one month. Specifically, Natural Rubber and crude derivatives like synthetic rubber/ Nylon Fabric prices have moved up," added Subbiah.

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The price hike is another stark reminder of the challenges faced by the companies in this volatile financial situation. Furthermore, with Ceat and Apollo initiating this price hike, the chances of other manufacturers, like Maxxis Tyres and Reise Moto, following the same suit will now be a high possibility.