CEAT reduces tyre prices due to lower input prices

Mumbai, Sep 20: CEAT Tyres, India's leading tyre manufacturer, today announced that it would pass on the benefits of the decrease in prices of key input commodities, including Natural Rubber&Crude to the customers, in the form of a four to five per cent drop in its tyre prices.

Increased volume in tyres resulting from enhanced automobile production and the continuing pick-up in the replacement tyre market, has also contributed to CEAT's decision, a press release by the company said.

CEAT has taken a leadership stance in the Indian tyre industry by becoming the first tyre manufacturer to take a decision to reduce its prices and pass on the benefits to its consumers. This reward to loyal customers of CEAT will come into effect from today - September 20, 2006.

CEAT Managing Director Paras K Chaudhary said, ''We believe that reduction in prices will benefit our truck, bus and LCV consumers and we are happy to pass on the benefits to our consumers through this price reduction. We expect to gain long-term customer loyalty through this move.'' Over the last 4 months, the tyre industry has seen fluctuating trends in the prices of raw materials. The prices of natural rubber, which had shot up by a whooping 30 per cent around June this year have relatively reduced. Also, the prices of crude oil, which touched record levels of USD 78.40 a barrel, have also subsided to USD 60.57 levels. Finally, replacement of natural rubber with synthetic rubber has touched 15 per cent, which has further reduced input prices.

CEAT, a major player in the Indian Tyre market is uniquely present across all segments of the tyre market and has ISO 9000 approved manufacturing facilities at Mumbai and Nashik.

UNI