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Falling demand for automobiles have led to a demand slump in the tyre market as well. A few tyre manufacturers have cut prices of their products in order to attract consumers.
Apollo Tyres, one of India's biggest tyre makers, have made a cut of 0-2% in the replacement market. No price changes have to made to the demand from vehicle manufacturers.
A spokesperson for the Delhi-based Apollo Tyres confirmed the price cut. The domestic replacement segment constitutes about 40% of the overall demand.
Apollo is currently present in the commercial vehicle segment as also in the passenger vehicle segment. Following this move other tyre producers are expected to follow suit.
The price cut comes at a time when domestic rubber prices are higher than even international rubber prices indicating a sharp crunch in supplies of natural rubber.
Automotive Tyre Manufacturers Association (ATMA), the apex body of tyre makers in India on Wednesday urged the Rubber Board to intervene for resolving the supply crunch in domestic natural rubber market. Present RSS 4 prices are ruling at Rs. 162 per kg, while international prices are lower at Rs 157 and Rs 146 for SMR 20 (Standard Malaysian Rubber)
