CEAT ups tyre prices by 2 to 10%

CEAT has increased prices of its products across various categories by 2 to 10 pr cent, citing increasing input costs.

The product range affected by the hike includes trucks, light trucks, passenger cars and utility vehicles, a company statement said.

"A price hike was essential to meet the manufacturing cost which had shot up. This will enable us to stay committed to enhancing the quality of our products and upgrading our technologies," CEAT Vice-President Marketing and Sales Arnab Banerjee said.

Subsequent to the hike in truck tyres by 6 to 9 per cent, light truck by 6 to 10 per cent truck tyres prices have risen by Rs 1,000 to Rs 1,500 per pair, the statement said.

A marginal hike in car tyres by 3 to 6 per cent, will result in an increase of Rs 100 to Rs 200 per pair of car tyres.

The car and jeep radial has been increased by 2 to 4 per cent, it said.

Recent months have seen the continuing trend of steep hike in the prices of raw materials, which account for over 70 per cent of the production cost of tyres, it said.

The price of natural rubber has increased to Rs 120 per kg from Rs 90 per kg in May, a 30 per cent jump.

Besides rubber, carbon black -- another key raw material -- has seen 25 per cent price escalation.

The company said input costs have seen a 10 to 12 per cent increase in its manufacturing prices in the past one year.

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