Kochi (Kerala): Indian tyremakers are planning to raise prices if the rupee continues to depreciate against the dollar, Vikram Malhotra, vice president (marketing & sales) of JK Tyre & Industries Ltd said.
Nearly 15% fall in rupee against the dollar over the past two months has been putting pressure on trye companies' margins as the raw material costs have risen, Malhotra said after the inauguration of fifth steel wheels showroom of the company in Kochi.
"Since there is a slowdown in demand we have to see how much of the increase in cost can be passed on to the customers," he added.
The company's cost of imports has increased due to high prices of raw materials, which comprise almost 85% of the cost of the tyre, and rupee depreciation.
Malhotra further said that euro zone crisis has not impacted the exports of the company, as Europe is a not a big buyer. JK Tyre is eying South America and Africa markets for exports.
Meanwhile, the Competition Commission of India (CCI) is examining the tyre makers for cartelization and the matter is expected to be finalized in about a week to 10 days, R Prasad, member of CCI told CNBC-TV18 Thursday.
Shares of JK Tyre closed at Rs 93.5, down 3.56%, on the Bombay Stock Exchange Thursday.