Ceat, the RPG Enterprises tyre flagship has raised its tyres prices by 2-2.5 percent across categories. The company is expecting an improvement in margins from September quarter due to a fall in prices of rubber. However, the company has no plans to raise tyre prices further.
The fall in rubber prices should benefit the company from Q2, but it will reflect clearly in the Q3 as the company keep inventory of 2-3 weeks. Natural rubber makes up more than 40% of the cost of a tyre and its prices have fallen 13% from its peak of Rs 24,300 per 100 kg struck on April 5.
Ceat is among the best tyre manufacturers in India. Besides tyres, the company also manufactures and markets tubes and flaps. It manufactures a wide range of tyres for two-wheelers, three-wheelers, four-wheelers, tractors and tippers and trucks.
