This will seriously impact the overall performance and profitability of the Indian tyre industry, said Rajiv Budhraja, director general of Automotive Tyre Manufacturer's Association.
Besides the price appreciation, supply crunch is another serious issue faced by the industry. Even at the record high price tags, rubber is not available in the market, which is affecting the production of tyres.
Talking to Business Standard, he said that the price of synthetic rubber is also on the rise, making the situation more complex. The industry will definitely evolve a strategy to tide over the situation which may include enhancing imports.
The industry has to enhance the availability of rubber since it is a major concern of the rubber-based industries rather than the sharp appreciation in prices. We are open to all options including enhancing import, he added.