Mumbai: Apollo Tyres Ltd has raised product prices across categories by 2-4 % to offset the surge in cost of rubber, a senior official said on Thursday.
“This is with effect from today, the quantum would vary acoss product lines,” Chief Financial Officer Sunam Sarkar told Reuters over the telephone adding that the hikes are effective from Thursday.
Spot price of the most traded RSS-4 (ribbed smoked sheet) rubber has hit a record high of Rs15,650 in Kottayam, Kerala, as per data compiled by the Rubber Board.
Natural rubber makes up over 40% of the total cost of a tyre.
Sarkar said a further round of price increase was required in coming months to combat the surge in costs.
Rival JK Tyre and Industries Ltd is also planning a price increase in the near term, A.S. Mehta, its director marketing, said.
“We have not yet revised. But we have to very soon,” he said.