Tyre dealers voice concern over price hikes

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Kolkata, June 1

Tyre dealers will meet the Union Industry Secretary, Mr Ajay Shankar, on Monday opposing "indiscriminate tyre price hikes by domestic tyre majors".

In a press release issued on Saturday, All India Tyre Dealers Federation (AITDF) said that having increased tyre prices by 17-25 per cent in 2006-07 and 8-10 per cent in 2007-08, the domestic tyre majors have again increased tyre price by 4.8-5.2 per cent in April 2008.

The price rises were effected citing rise in raw material cost, especially the cost of natural rubber. However, "the financial results of all major tyre companies during the last fiscal indicate a drop in raw material costs leading to increase in profits by 110-225 per cent," the release adds.

Alleging that such indiscriminate price increases are adding to the inflationary pressure by increasing the cost of transportation, AITDF said that during its meeting on Monday the federation would seek (i) abolition of custom duty on import of truck-bus radial tyres and tubes, (ii) restriction on export of tyres for commercial vehicles till the situation in domestic market eases, as Indian tyre industry is operating at full capacity and (iii) roll back of domestic tyre prices to January 2008 level.

Taken from Business Line

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