Is the tyre price hike justified?

OUR BUREAU | Updated on November 17, 2017 Published on November 06, 2011

A few leading domestic tyre manufacturers have announced hike in the prices of passenger car radials, and other manufacturers too will follow suit.

The hike has been announced at a time when the raw material prices have virtually remained unchanged for long. Between January and June this year, there was 15-20 per cent hike in the prices of tyres for commercial vehicles, passenger cars, farm vehicles and two- and three-wheelers.

Drop in imports

The latest round of price increase, it is felt, was announced by tyre manufacturers to take advantage of the apparent shortage of tyres. The shortage is believed to have been caused by a 60 per cent drop in imports due to anti-dumping duty and various non-tariff barriers. The delay in issue of the mandatory quality certificate according to the BIS is the most important of the barriers.

It is learnt that 24 international firms are ready to export tyres to India. But they are awaiting the certificates. Tyre dealers complain that the Government has been sitting on their demand for scrutiny by Tariff Commission of any proposal for tyre price hike before the announcement is made by the manufacturers.

Published on November 06, 2011
This article is closed for comments.
Please Email the Editor