JK Tyre plans 11%-13% price hikes by September-end

Synopsis

JK Tyre plans product price increases of eleven to thirteen percent. These hikes will occur by the first half of fiscal year twenty twenty-seven. Rising input costs, including petroleum-based materials, drive these planned price adjustments. Rivals Apollo Tyres and CEAT have also implemented similar price increases. Strong vehicle sales provide tyre makers room to pass on higher expenses.

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Indian tyre maker JK Tyre & Industries expects ​to raise product prices ​by 11%-13% by the end of the first ​half of fiscal 2027 to offset rising input costs, its finance chief said, joining rivals in passing on higher expenses to customers.

The hikes ‌reflect pressure across ⁠the ⁠auto-parts sector after an oil price rally linked to the Middle East ​conflict drove up the cost of petroleum-based inputs, energy and freight.

"Prices (of ​raw materials) have gone through the roof and for us, it went up by almost over 20%. So, that has ​impacted business in this quarter," JK Tyre ⁠CFO Sanjeev ‌Aggarwal told Reuters on Wednesday, citing West ​Asia tensions, ​transport disruption and supply-chain constraints.

The company, which ⁠counts leading car makers Maruti Suzuki India and Tata Motors among its customers, had said in May it planned a 5%-6% price increase.

Raw materials such as natural rubber, synthetic rubber, carbon black and steel make up about two-thirds of JK Tyre's expenses.

Aggarwal said JK Tyre had rolled out price increases every month in the ‌first quarter, with a small part of the planned rise implemented in June and the rest ​due in ​coming months.

The move ⁠brings it into line with rivals Apollo Tyres and CEAT, which have also raised prices. Top Indian car makers have also passed on costs to customers.

Industry data released earlier this month showed vehicle sales rose 21.8% in June, signalling strong demand across passenger and commercial vehicles and giving tyre makers more room to pass on higher costs.