Tyre Manufacturers Implement Price Hikes Amid Rising Crude Costs

Tyre manufacturers in India have initiated their first price increases since the Iran war began, citing sustained crude oil price rises as the key driver. The hikes primarily target the aftermarket segment, leaving original equipment manufacturers (OEMs) largely unaffected for now.

Crude-Linked Costs Push Tyre Prices Higher

Crude derivatives make up nearly 60–70 percent of tyre production costs. Key raw materials such as synthetic rubber, carbon black, processing oils, and tyre cord fabrics are all crude-based, making tyre manufacturers highly sensitive to oil price fluctuations.

Anshuman Singhania, Managing Director of JK Tyre & Industries, stated the company has implemented selective price adjustments of 2–3 percent across product categories. CEAT Ltd and Balkrishna Industries have also announced similar hikes, with export prices increasing up to 5 percent.

Industry executives suggest that these initial increases are partial. “Passing cost increases to consumers happens gradually. A 10 percent hike is likely needed but will be implemented in phases over several months,” said a senior tyre industry executive.

Supply Chain and Export Pressures

Tyre manufacturers are also grappling with shipping disruptions that impact imports of natural rubber, synthetic rubber, chemicals, cord fabric, and other petrochemical derivatives. Elevated freight costs and delayed shipments are adding pressure to both domestic and export markets.

India exports approximately $250–260 million worth of tyres annually to West Asia, a region now facing geopolitical uncertainty. Logistics costs and transit times for shipments to Europe, the U.S., and Africa are also expected to rise.

Vehicle Price Hikes Compound the Effect

The tyre price increases follow similar moves by automakers. Tata Motors, JSW MG Motor India, Honda Cars India, and market leader Maruti Suzuki have raised vehicle prices between 0.5–2 percent. Luxury brands such as Mercedes-Benz India, BMW India, and Audi India have implemented approximately 2 percent hikes, some marking their second increase this year.

Market analysts warn that the combined impact of rising tyre and vehicle prices could suppress demand in the months ahead, particularly if crude oil prices remain elevated.