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Strong rupee may reduce imported radial prices by 5%
Our Bureau
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Imports rise to 45,000/month during March-April
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Bangalore
May 2
The rupee appreciation by six to seven per cent in the last eight weeks against the dollar is expected to bring down the price of imported radial tyres by Rs 600 to 800. The reduction in the price by about four to five per cent comes soon after the reduction in the peak import duty announced in the current Budget. This has come as a windfall to the freight truck operators.
The rupee appreciation and peak-duty reduction has helped in not only bringing down the price but will also bring radial tyres usage within the reach of owners with a smaller fleet of five to six trucks, said the All India Tyre Dealers Federation (AITDF).
Now, a pair of truck/bus tyres will cost Rs 20,700 in comparison to its price of Rs 21,500 in February 2007. The freight truck operators had been reeling under volatility in the diesel price and frequent increase in the price of tyres in the last two years.
The two key inputs, which together account for more than 80 per cent of the operating cost, had adversely affected the freight operators business. However, with a semblance of stability in the diesel price in the last one year, and the stronger rupee and import duty reduction, the trade expects to improve its business in the long run.
Relief impetus
The Federation said the supply of radial tyres would get further fillip with the recent reliefs. Import of radial tyres has gone up three-fold to 45,000 per month during March-April this year, compared to 15,000 for the same period last year.
The Indian commercial vehicle tyre market is dominated by the cross-ply Nylon fabric truck/bus tyres.
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