Tyre Prices Rise As Costlier Crude Pinches Manufacturers
Tyre prices have risen across India as manufacturers deal with an increase in input prices and a weaker rupee, according to BloombergQuint's survey of dealers across 6 cities.
MRF, Ceat Ltd., Apollo Tyres Ltd. and JK Tyre Industries Ltd. have all raised prices in the range of 2.5-3 percent.
Brent crude hit $75 per barrel mark last month, its highest level since November 2014. Oil and its linked derivatives such as carbon black form an integral part of a tyre company's raw material basket. In addition, a weaker rupee means imports become more expensive.
The increase in tyre prices comes at a time when both natural and synthetic rubber prices have remained largely stable at lower levels. MRF has increased the prices of tyres used by commercial vehicles by Rs 300-500 per tyre, effective May 5, according to one dealers surveyed by BloombergQuint.
MRF Ltd., India's largest tyre maker by market value, highlighted the risk of rising commodity costs in a press release accompanying its earnings for the quarter ended March.
Escalation in the cost of crude based inputs remains a concern and will add pressure to the bottom-line. At the same time the competitive intensity in the industry continues to remain at fever-pitch due to anticipated ‘on—streaming' of several Greenfield and Brownfield capacities by many players in the months ahead.MRF Press Release
With auto sales in top gear and a shortage of carbon black in the domestic market, dealers suggest there may be room for further price hikes in the second quarter of this financial year.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
