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Tyre companies seem to be raising or planning to raise product prices. There are three reasons given -- the rupee's heavy depreciation, the recent sharp rise in the price of natural rubber (NR) and increases in the prices of other raw materials, such as chemicals and synthetic rubber. Michelin and Bridgestone have already announced a rise in prices.
Satish Sharma, chief, India operations, Apollo Tyres, told Business Standard the environment definitely called for a rise in prices. "We are studying the situation," he said.
Most companies also plan to enhance their inventory of imported rubber, as the price is Rs 40/kg less in international markets. The problem here is the rise in the dollar, compared to the rupee. Which is another reason for them to consider a rise in tyre prices.
