Indian tire manufacturer JK Tyre & Industries intends to raise the price of its products by 11–13% by the end of the first half of the 2027 fiscal year. This decision was made to compensate for rising raw material costs, placing the company among competitors passing on increased expenses to consumers.
Reasons for the price increase
The price hike reflects general pressure in the auto parts sector. The rise in oil prices linked to the Middle East conflict has led to an increase in the cost of energy sources, freight, and oil-based raw materials.
Company management comments
Sanjiv Aggarwal, CFO of JK Tyre, told Reuters on Wednesday that raw material prices have risen significantly, increasing by almost more than 20%. He noted that this has affected the company's operations in the current quarter, citing tensions in West Asia, transportation disruptions, and supply chain constraints.
Pricing policy history
Previously, in May, the company announced plans to increase prices by 5–6%. Sanjiv Aggarwal also specified that JK Tyre had already implemented monthly price increases in the first quarter, with a small portion of the planned increase realized in June, and the remainder expected in the coming months.
Competitive environment and demand
This move brings JK Tyre in line with the actions of competitors such as Apollo Tyres and CEAT, who have also raised prices. Major Indian automakers have also passed on costs to their customers. Industry data published earlier this month showed a 21.8% growth in vehicle sales in June, indicating high demand for both passenger and commercial vehicles, giving tire manufacturers more opportunities to pass on increased costs.