Indian Tyre Companies to Cut Prices from 1 March
Some of India’s leading tyre manufacturers including MRF and Ceat will cut prices by between 1 and 2 per cent. According to local news sources, the news follows a proposal from India’s finance minister to introduce a two percentage point cut in duty as part of the 2008/09 budget in order to boost manufacturing. As a result, Indian manufacturers are queuing up to be seen to pass on the benefit to their customers.
“We will be passing on the entire duty cut,” K.J. Rao Chief Financial Officer at Ceat was quoted as saying. Koshy Verghese, MRF’s executive vice president commented also gave details of a 1 per cent-plus price cut on its truck products. In 2007 MRF Ltd. was reportedly the Indian market leader (22% market share;) followed closely by Apollo Tyres Ltd. (21%); JK Tyre & Industries Ltd (18%); and Ceat Ltd. (13%).