J K Tyres to reduce prices

J K Tyres today announced a reduction in prices after the reduction in Cenvat duty from 16% to 14% in Budget 2008 yesterday.

The company has reduced the prices of car tyres between Rs 20 and Rs 40 and heavy vehicles' tyres between Rs 150 and Rs 170.

A S Mehta, marketing director, J K Tyre, said: "Contrary to reports attributing a price cartel among tyre manufacturers to fix prices and despite a price hike of raw materials of over 47% since 2003, tyre prices have been raised only by 35.5 % during the same period."

"We fix prices over a quarter period. So, price dips or rises can only be fixed at the end of the quarter," Mehta added.

The company had raised prices in February by 1.75% while the price of raw materials rose by 5% during the last quarter.