Kottayam: Tire companies are reaping profits by raising prices uncontrollably even as farmers are reeling from falling rubber prices. Tires now cost up to 70 percent more than they did 12 years ago when rubber hit record prices. Tire prices have risen by up to eight percent despite falling rubber prices.
Small traders say tire companies are systematically raising prices without any benchmark. Tire prices have gone up seven times following Covid alone. Companies that tried to raise prices in an organized manner were fined heavily, but the current price hike is in the name of raw materials.
Fatigued rubber, bumpy tire
In 2011, the price of rubber was Rs. 248 per kg. 138 today. A bike tire that cost Rs 1,500 then costs Rs 2,500 today. Scooter tire price which was Rs 800 has become Rs 1,500. The price of a tire for vehicles like Innova has increased by Rs 3,000, while the price of heavy vehicle tires has increased from Rs 14,000 to over Rs 20,000. Besides, 28 percent tax and flood cess of Rs.
Math games
What is happening is unilateral tire price hike.
Hiding wages, taxes and fuel prices.
Government intervention for price control is ineffective.
“Due to increase in tire prices, sales and profits have decreased. Last December, the price was suddenly increased by eight percent. The price gap between the two has narrowed as China has also increased prices in line with Indian tire price hikes.
Tijin Parappally,
Small Tire Dealer
