New Delhi, Apr 3 (UNI) JK Tyre today announced increase in tyre prices by a minimum 2 per cent citing escalation of raw material prices.
Even with this price increase, the cost to price lag still stands at around 6 per cent, the company said in a statement.
This differential will be offset through further price increase during May-June 2006.
''The demand position seems to be quite encouraging and therefore, the company's offer of increase is being absorbed by the market place,'' JK Tyre said.
A growing automobile industry in India has resulted in a surge in demand for tyres. However, the industry is going through a critical phase, with the increase in raw material prices.
The increase in rubber prices is creating a strain on the bottom line for all tyre manufacturers.