Jk Tyres products to get a 5 per cent hike from January, 2011

The Indian auto market will experience a price hike in its auto mobiles by January 2011. As per the auto giants the increase in the cost of the cars is because of the continuous rise in the raw materials and cost production. But now the ancillary auto industry such as the tyre makers, and others are facing the price hike too in the raw material cost.

As per the reports from the auto industry, the well known tyre brand in India, JK Tyres is planning to raise the prices of its tyres. The hike is expected to be almost five per cent. The price hike will be in effect from the beginning of the next year due to the constant upsurge in the price of the raw materials, specially in the cost of natural rubber. As per the report, Raghupati Singhania, the Vice Chairman and the Managing Director of JK Tyres and Industries, the tyre company plans to raise the price of its products by four to five per cent from next year in January to curb the hike in the price of the raw materials. He added that, natural rubber prices are accelerating and if the prices will keep on increasing the tyre makers will be forced to revise the price again. He further said that, the increase in prices will be in both car radial and truck tyres.

As per the reports, JK tyres is planning to increase the installed capacity of the commercial car radial tyres from 8 lakh tyres to 1.6 million tyres every year. The company plans to increase the capacity by the mid of the coming financial year. The tyre manufacturer also expects to raise the passenger car radial tyre from 4.5 million to 5.5 million by December, 2011.

As per Mr Singhania, the company's passenger car radial tyre manufacturing capacity will increase from the current 4.5 million to 5.5 million by the end of 2011. It was also heard that JK Tyres and Industries, is expected to put in Rs 1,500 crore to start a new production facility close by Chennai in Tamil Nadu. As per the plans, it will start manufacturing by the second half of 2011.

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