JK Industries to hike tyre price by 8% from June 1

The last increase in tyre price by the company was effected in April when the prices went up by 2-3 per cent.

"In the last year and half, price of natural rubber has almost doubled to Rs 103 a kg. Price of crude oil is also on the rise. Even with this increase in price of the output, the cost escalation is left uncovered up to 5-6 per cent," said Kalyan K Paul, marketing director of the company.

Prior to the price hike, the average cost of a pair of truck tyres was between Rs 18,000 and Rs 22,000, while a pair of car tyres was for Rs 2,500.

Paul said in a move to make the company a trans-national tyre company, JK Industries will place greater thrust on the exports of its car tyres.

"A target of 45,000 tyres per month of exports has been set for the current financial year. Talks are on with major automobile manufacturing companies in Europe and South East Asia," he said.

The company recently increased its capacity to make passenger car tyres in Madhya Pradesh to 3.9 lakh units a month from the earlier level of 2.8 lakh units.

JK Industries is the second largest cross-ply (non-radial) truck tyre maker in the country with a market share in the replacement market at 22 per cent. The market leader Apollo Tyres has a 26 per cent market share.

In the passenger car market, JK Industries again hold the number two position with a 21 per cent market share, while market leader Bridgestone has a 23 per cent share.

"By the next financial year, we plan to emerge as the largest car tyre maker in the country," Paul said.