Demonetization a boon for local tyre manufacturers says Vivek Kamra of JK Tyre
In an exclusive interview with one of the leading business news magazine Vivek Kamra, President – JK Tyre & Industries, India said that JK has passed on most of the benefit of price drop in rubber prices to the consumer. Kamra also said that demonetization in India has had a big positive effect on the business of local tyre manufacturers in the country.
Kamra said, “We are seeing farm and two wheeler come back not as fast as one would like it to be but we are seeing demand coming back okay and in commercial vehicles the cashless economy has actually helped local tyre companies substantially. The last two months have seen record sales for a lot of the truck radial tyre companies who have the product basket. So we have seen record sales in the replacement market in commercial vehicles”.
In response to question asked about 50% drop in rubber prices and consumer not getting any direct benefit from the same, Kamra clarified, “2015-2016 did see tyre prices going down when rubber prices went down further. In fact, the lowest rubber prices reach were in Jan this year, Jan-Feb last calendar year. So we have passed on most of the drop in rubber prices to consumers and a lot of our prices to OEs are indexed so it does get passed on in any case and 40-50% of tyre supplies are to OEMs”.
To read the full interview visit: www.economictimes.indiatimes.com