Mumbai: Tyre maker JK Tyre & Industries Ltd will increase tyre prices by 3-5% in December to battle high input costs, a top official said on Tuesday.
“Rubber prices are troubling everybody. We have not yet increased, but we will have to. It will be anywhere in the range of 3-5%. We will be able to finalise later this month,” A.S. Mehta, director-marketing told Reuters.
Rubber prices, which make up nearly 60% of the cost of tyres, has been rising steadily in the past. They have shot up nearly 24% in Oct-Dec putting pressure on the margins of tyre makers.
Separately, the firm will raise its car radial capacity by 11% at a plant in Gwalior to 5 million tyres, Mehta said.
The firm has completed expanding truck radial capacity to 800,000 units from about 370,000 units in October at an investment of Rs3.15 billion.