Mumbai: Tyre makers MRF and Ceat will cut prices by about 1-2% after the union finance minister proposed to reduce a duty in the budget 2008/09 to boost manufacturing, officials said.
“We will be passing on the entire duty cut,” K.J. Rao Chief Financial Officer at Ceat said. “We are working on the exact quantum.” The cut will be effective from Saturday, he said.
Finance minister Palaniappan Chidambaram on Friday proposed a cut in the general CENVAT rate on all goods from 16% to 14%.
Koshy Verghese, MRF’s executive vice president, also said the company will cut prices from Saturday. “It should be about 150-175 rupees for a truck tyre, roughly over a percent.”
Officials at rival firms Apollo Tyres and JK Tyre & Industries could not be immediately reached.