Tyre maker Michelin announced that it will raise the prices of its tyres by 2%-4% on account of high input cost. It said that the increased price will be applicable to all the commercial light truck, truck and bus segment in the Africa, India & Middle East region.
The company has also planned a 2.5% hike in the passenger car segment as well. The highest hike, however, will be in the SUV segment – up to 4%. Looking at the recent trends in India people are inclined toward buying SUVs and as a result tyres like Michelin LXT Force and Latitude Sport 3 are always in demand.
The company also stated that the price revision “addresses an increase in the cost of raw materials, such as natural rubber, and other market factors,” and will be effective from September 2019. Increased prices will be reflective of all Michelin Group brands.
Prices of Indian rubber sheet stands at Rs 145 per kg, which is Rs 40 higher than the sheet variety in the foreign market. Besides, heavy rains have affected tapping in Kerala which has caused a shortage of supply.