KOCHI: The tyre dealers have voiced concern at the tyre prices remaining high despite a drop in rubber prices and have urged the government to intervene in the matter to protect the interests of tyre trade and road transporters.
The All India Tyre Dealers’ Federation said two years ago the tyre makers hiked tyre prices by 26 to 30% in all categories of tyres, rather than raising the rates selectively on some categories of tyres, when the natural rubber prices touched Rs 240 per kg mark. The tyre makers benefitted from the higher prices. The first quarter results in 2013 saw most of the domestic tyre manufacturers posting good results.
The rubber prices have dropped to Rs 167.50 per kg now. Though the price of the main raw material has come down it has not been reflected in the end product prices. AITDF convenorS P Singh said this has resulted in undue increase in capital investment of tyre dealers and higher risk in their credit sales to the commercial vehicle owners.
The OEM tyre segment in medium and heavy commercial vehicle sales, passenger car sales and truck rentals have been showing a negative trend in the first two quarters. The tyre replacement market, which has been doing comparatively better, has been denied the benefit of steep drop in rubber prices through price cuts.
The fall in rupee, meanwhile, has led to tyre imports becoming costlier paving the way for undue protection to handful of domestic tyre manufacturers. As a result the tyre prices continue to remain high, S P Singh said in a statement.
Source: India Times
