Trucking News
latest truck news

Apollo Tyres Hikes Tyre Price by 3-5 Percent To Neutralise The Rising Cost

TNI || New Delhi || 18th Nov 2021

Endurance Rat

Apollo Tyres has announced that it will undergo a price hike of 3 to 5 per cent in the domestic market in the third quarter of this fiscal.

The reason for the price increase is attributed to rising commodity costs which, if continues to surge, will compel the tyre manufacturer to take another increase in the fourth quarter.

Switch Mobility To Ply 300 Electric Buses, Made by Ashok Leyland, In Bengaluru

Until September this year, the company had taken an average price increase of 9 per cent as per its Chairman and Managing Director, Neeraj Kanwar.

According to Gaurav Kumar, the CFO of the company, the price increase in this quarter will vary between 3-5 per cent across various segments.

Truck Tech Apprenticeship Program Launched By Navistar

He adds that in Q3 from Q2, a small cost push was expected on account of raw material. As for Q4, Apollo still has to see what will be the position of raw materials based on which the decision for a further enhancement in pricing will be taken.

To sustain, according to him, another 3-5 per cent of the increase is on the cards, but that will only happen if the raw materials are at current price levels.

Apollo Tyres notably had shown a decline of 59 per cent, with the net profit hovering at Rs. 89.65 crore as against Rs. 216 crore in the last fiscal, same month.

Musk Says True Test of Rivian Will Be High Production & Breakeven Cash Flow

Kumar adds that normalcy is returning to the country after a prolonged stretch of the pandemic, and the company is now witnessing a consistent improvement in the demand.

The truck tyres segment which was lagging behind has now shown some promise, however, the passenger car OEM continues to suffer due to a shortage of semiconductors.

Although the demand momentum is going strong, what has caused the reason to worry is raw material inflation and OEM disruptions when it comes to production.