Another car component to become costly – Know why!
Running and owning an automobile is a costly affair. With petrol and diesel prices reaching record highs not-so-long-ago, the consumer thought that it was the maximum they had to bear. However, another component is now going to cost you more, and that is a new set of tyres. Prices of new tyres are being hiked, and in this article, we will discuss the increase in tyre price and how it will affect you.
Why the hike?
The main reason behind the rise is the increase in the cost of raw materials. The cost of raw materials has shot up by a margin of around 25%. However, another reason is the restrictions on importing of rubber, due to which the supply has been affected. The restrictions were put up in August last year, and have been continuing since. The restrictions delay have increased the delivery times making the supply slow.
Both these reasons come together to increase the final prices. But this is not the last hike. The tyre manufacturing companies cannot directly increase the price by a big margin to compensate for the above-mentioned reasons. So, the prices are hiked gradually. This means the prices will again rise in order for the companies to earn a healthy profit.
Also, the industry earns the major chunk through the tyre replacement market and some chunk through sales to the automobile manufacturing companies.
How will it affect you? 
The consumers looking for a new set will now have to pay an extra of up to Rs 2000 per pair for the regular tyres, and up to Rs 6000 per pair for luxury car tyres. The prices will further increase, as already mentioned above. The supply constraints have also resulted in the unavailability of products from some known tyre brands.
For instance, the bike tyre industry is facing a shortage of tyres like Metzeler, Continental TKC and Timsun. Similar to the bike tyre industry, the car tyres industry is also seeing a shortage of tyres from some brands.
Earlier, Michelin had also declared that they have put a hold on four-wheeler tyre supply to India due to the difficult laws. The company has put a hold until a further update from the government.
This was our information on the increasing tyre price. Join our new WhatsApp update list by clicking here. For more such content stay subscribed to the Motoroctane Youtube, Google NEWS, Facebook and Twitter. We also have a paid car consultancy service for all your doubts – Know more before one of your largest investment.
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