MRF hits record high; Ceat, JK, Apollo Tyres rally up to 6%; here's why

Tyre companies' share price today

Shares of tyre makers MRF, Ceat, JK Tyres and Apollo Tyres rallied by up to 6 per cent on the BSE in Tuesday's intra-day trade after automobile companies reported healthy sales numbers and on the expectation of replacement demand.

 

MRF hit a record high of ₹1,54,238.70, surging 6 per cent in intra-day trade. The stock surpassed its previous high of ₹1,53,000, which it touched on July 17, 2025. Shares of JK Tyre also soared 6 per cent to ₹352.90, while Apollo Tyres (₹491.80) and Ceat (₹3,550) rallied 5 per cent each. 

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What's driving the rally in tyre stocks?

In the two-wheeler (2-W) space, TVS Motors continued with its healthy growth of 30 per cent in the month of August 2025. While Eicher Motors (Royal Enfield) has outperformed its peers, reported healthy growth with the highest ever sales, Bajaj Auto posted a steady show during the month. 

 

In the commercial vehicle (CV) segment, the market leader, Tata Motors, reported healthy CV volumes up 10 per cent year-on-year (Y-o-Y), while Ashok Leyland volumes were also up by 5.4 per cent Y-o-Y. Volumes at the VECV arm of Eicher Motors continued to grow with 9.5 per cent Y-o-Y growth at 72,000 units.

 

Kotak Institutional Equities believes multiple government initiatives, including potential Goods and Services Tax (GST) cuts, will drive auto demand. A shift to 18 per cent GST (across most segments) could reduce on-road prices by 3-8 per cent across 2Ws, PVs, CVs and tractors, which may stimulate volumes.   

Domestic auto ancillaries are set to benefit through higher original equipment manufacturer (OEM) demand, strong replacement volumes and operating leverage. Tyre makers also gain from replacement demand (except Balkrishna Industries due to higher global exposure), while battery companies may also benefit due to an uptick in OEM, replacement and industrial demand, the brokerage firm said.

 

Looking ahead, Apollo Tyres anticipates a stronger topline growth in both India and Europe. In India, this growth is likely to be led by the replacement segment. Regarding the demand outlook, the company expects the demand momentum to improve in the second half of the fiscal year.   ALSO READ: MobiKwik shares surge 15% after ADIA block deal; details inside 

Moving on to the raw material outlook, Apollo Tyres in its Q1 results earnings conference call said the company expects the raw material cost to be slightly lower in Q2 vis-a-vis the current levels; however, with a bit of uncertainty given on the exchange rates that are currently prevailing.

 

With the upcoming festive season, coupled with the benefits of the recent repo rate cuts and favourable monsoon conditions, JK Tyre expect the consumer sentiments to improve further. In FY26, the Indian tyre industry is expected to achieve 7 per cent to 8 per cent growth on the back of strong domestic replacement demand despite muted original equipment (OE) offtakes. Premiumization continues to play a pivotal role in improving realisations, the company said. 

  ALSO READ: MobiKwik shares surge 15% after ADIA block deal; details inside