Goodyear India to increase its PCR tyre rates to 2-4%

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Goodyear India to increase its PCR tyre rates to 2-4%

Tyre manufacturers continue to battle input cost inflation with price increases, but the continued surge in raw material prices is making it tough for companies to avoid a margin compression due to this Goodyear India has increased its Passenger car tyre prices to 2 to 4% which will take effect from December 1.

Goodyear tyre company recently completed its 100 years in India in 2022. It has two plants, one each in Ballabgarh and Aurangabad. In the passenger car segment, Goodyear supplies tyres to many of the leading OEMs in India and has been a pioneer in introducing tubeless radial tyres in the market.  Goodyear is a leading brand in the farm segment that supplies all major tractor companies.

For the sector, raw material consumption cost has risen by more than 5% sequentially so far in 2022. Companies have raised prices by 12-15% so far in this financial year.
The Russia-Ukraine war and the Dollar surge are the factors that mainly contributed to inflation in India and the world.

“Our analysis suggests that to maintain healthy margins, tyre companies would have to further hike prices in the replacement segment by 6-8%. As the price hike lags RM cost inflation, we believe that 1QFY23 margins are likely to be affected (with a quarter’s lag) while 4QFY22 margins are expected to remain at 3Q level,” said the JM Financial report dated 8 March.

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