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Apollo Tyres Will Become Expensive Soon!
He added that the prices of bias commercial vehicle tyres is to increase by 3% and the rise for tyres of truck and buses will be by 6% from the Q1 of the new fiscal. Already the company had increased the price of tyres for passenger cars by 3% which will be again hiked by another 3%, he said. As of now, the cost of the tyres from the company is in the range of Rs2150-Rs12500 each; the cost of radial tyre for truck and bus is from Rs16900-Rs20200. The rise is the result of the increase in the raw materials by 35-36% from the earlier 16-17%.
Another major factor for the rise, he said, is the severe competition in the domestic market which made a break for the company to effect the rise of 3%. The global market of tyre has seen the rise, as done by Bridgestone and Michelin, by 8-12% as Goodyear effected the rise by 15%. Hence the domestic market too followed the suit. Due to the price retention, the company faced a loss in the margin during the current FY- from 16.5% to 10.5%in the Q3. He exclaimed that the index has come down to worry about the ending quarter of this fiscal.
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