JK Tyre Plans 11-13 % Price Hikes By FY27 H1
JK Tyre & Industries wants to raise tyre prices by 11 per cent to 13 per cent by the end of the first half of fiscal 2027. They want to offset higher input costs.The company's Chief Financial Officer, Sanjeev Aggarwal, said raw material prices have gone up by 20 per cent. This is because oil prices are higher, which has increased the cost of petroleum-based inputs, energy, and freight.Key materials such as rubber, synthetic rubber, carbon black, and steel account for about two-thirds of JK Tyre's expenses. This makes the cost surge particularly significant for JK Tyre. JK Tyre has been increasing prices every month during the quarter. They have already implemented a portion of the planned increase in June. The remainder will be implemented in the coming months.
JK Tyre had earlier planned a price rise of about 5 per cent to 6 per cent. They have revised their plans because input costs have increased more than expected. The tyre maker supplies leading car manufacturers like Maruti Suzuki India and Tata Motors. They are doing what their competitors are doing.
The competitors have also raised prices. Vehicle manufacturers are passing on costs to customers. Vehicle sales grew strongly in June. This is across passenger and commercial segments. This has given tyre companies room to adjust prices. They can do this without affecting demand.
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