The All India Tyre Dealers' Federation has sought a 17-22 per cent cut in tyre prices from the tyre majors like Apollo, JK, MRF and Ceat.
In a letter to the Prime Minister Manmohan Singh and UPA Chairman Sonia Gandhi seeking their intervention, the federation has claimed that “tyre majors are indiscriminately jacking up prices even when the raw material prices have nosedived to the bottom”.
The federation has pointed out that natural rubber prices have fallen by 46 per cent to Rs 85 per kg since October, but these companies have hiked prices by 2 per cent in the last two weeks. Tyre prices had been jacked up by 15-20 per cent during March-August period for all categories, the letter said.
“High tyre prices lead to increased capital investment and low rate of return for tyre dealers,” the federation said.