Apollo Tyres to increase prices

Apollo Tyres revealed that it will raise the price of its tyres from April by 6 per cent due to the increase in the raw material cost. If there won't be increase in the cost of the tyres, the tyre industry could face heavy loss. Apollo suggests that an increment of minimal 10 per cent is required in its products.

Satish Sharma, Chief (India Operations) at Apollo Tyres said that from the month of April the company will raise the prices of its products. This is happening because of the bizarre increase in the price of the raw materials. He added that from the next financial year's first quarter the commercial automobile tyre will raise up to 3 per cent while bus and truck tyre prices will go up by 6 per cent.

When asked about the passenger car tyres he said that in February the prices of the passenger car tyres were raised by 3 per cent and again it will shoot up by 3 per cent.

Passenger car tyre prices are different as it starts from Rs 2,150 to Rs 12,500 for per unit. While the rates for the radial tyres of the commercial vehicles truck and bus begins from Rs 16,900 to Rs 20,200.

If looking at the present situation in the current financial year the prices of raw materials have raised by 35 to 36 per cent wherein the tyre company raised it only by 16 to 17 per cent prices of its products.

The Indian tyre industry at present is in a stringent position due to fierce competition and market pressures it is not increasing the rates by more than three per cent.

If looking at the international tyre market Bridgestone and Michelin raised the prices up to 8 to 12 per cent, Goodyear increased it by 15 per cent. India is growing in auto industry and is not left behind with the effect of increasing raw material prices.

Apollo Tyres profit margins have squeezed in the present fiscal, for this year in the third quarter it has grown by 10.5 per cent against last year same time which was 16.5 per cent.

At present on natural rubber, 20 per cent of the import duty is levied on the other hand on finished tyres it is 10 per cent. It will be beneficial for the tyre makers if government takes away the taxes and makes it duty free.

Read More on : Audi R8 review