Mumbai: JK Tyre & Industries has last week increased prices of tyres 2-3% across categories, but may hold at the present level for now as rubber has softened of late, a senior official said.
“July is going to be a tough month and the sentiments are that rubber has fallen. So it will be difficult to convince the market (of a further raise),” said A. S. Mehta, director-marketing at JK Tyre.
Mehta said the company would be in a better position to decide on future pricing in the next 10-15 days, after assessing market conditions.
In June, rubber prices fell more than 6% and demand for commercial vehicle tyres is usually low in July and August due to the monsoon.
Natural rubber makes up more than 40% of the cost of a tyre and its prices are up 1.7% this year.
JK Tyre shares provisionally ended 1.28% lower at Rs100.3 in a firm Mumbai market.