Indian tyre major Ceat has increased tyre prices by 2 to 2.5 per cent. Ceat, which is India's fourth-largest tyre manufacturer has said increased rubber prices along with other raw materials had resulted in the price hike. Recent reduction in rubber prices might come as a sweetener to Ceat. It is now expecting margins to improve the quarter ending September.
Anant Goenka, Ceat's deputy managing director said: “Rubber prices have come down from its peak. It should benefit us from Q2, but it will reflect clearly in the Q3 as we keep inventory of 2-3 weeks." The price hike will be effective across all Ceat tyres.
Ceat does not intend to increase tyre prices any further. Prices of natural rubber which had shot up astronomically has dropped 13 per cent from Rs24,300 per 100kg.