Expensive Tyres At Apollo and Bridgestone

By By: Vicky.in

Published: Tuesday, December 28, 2010, 16:32 [IST]

The entire 2010 saw the prices of rubber fluctuating and the import duties too threatened the price of rubber products, especially the tyres. Currently the government has slashed the import duty on the rubber but the tyre companies are in the mindset to increase the price. By the waive, the slash in the import duty was from 20% to 7.5% applicable to shipments of 40000tonnes till March 2011.

The price of tyre at a kg stood at Rs207. But this does not prevent Apollo from raising its price, said its Chief Financial Officer. The company wants to increase the margins by increasing the price of its products. He said the rise will be based on the reduction of the import duty but hinted that the price will reduce over the months.

Apollo had increased its price of products this by 10-12% from the earlier rise of 3-3.5% made in July this year. This came despite the call for rise by the tyre companies to increase the price by 25% quoting the input cost rise. The rise is not constrained to Apollo alone but another major tyre maker Bridgestone effected the rise by 2% this month. The company"s MD said the rise became inevitable after the rise in input costs and the future rise will also be based on the rise in input cost, he added.

Article Published On: Tuesday, December 28, 2010, 15:39 [IST]

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