Takashi: Indian tire makers are yet to offer these advantages. The fall in natural rubber prices has also been transferred to consumers.

Some admit they have transferred benefits on a small scale, but others say rising prices have prevented them from doing so.

Over the past year, natural rubber prices in the domestic market have fallen 34% to Rs 123 per kilogram, the lowest in the past five years. Prices fell in the international market due to oversupply and weak demand in China. During the same period, global rubber prices plunged 38%.

Since natural rubber is the main raw material for tires, the most important question is whether manufacturers will reduce tire prices. Satish Sharma, President, Asia Pacific, Middle East and North Africa, Apollo Tyres “In order to adapt to the changes in raw material prices and the competitive nature of our markets, we have made several small price reductions.”

The adjusted prices are not very visible due to the sluggish sales trend in the market. So far, the sales recovery has been limited to the passenger car and tire replacement sectors.

Demand in the agricultural sector, which grew last year, is also low. We are transferring the benefits to original equipment suppliers. Unfortunately, sales in this segment are on a downward trend, said an executive of a major tire company.

Tire makers have been importing rubber in large quantities since last year due to lack of supply in the domestic market and high quality of imported rubber. This year’s imports are expected to increase from 325,000 tons to 400,000 tons. The cost of imports has been lower than the domestic rubber prices as the price of rubber powder in the international market has gone below Rs 100 per kilogram.

Rising prices of other components used in tires is another reason why tire manufacturers are not able to convey all the benefits to consumers. The fall in rubber prices is cyclical. At the same time, prices of synthetic rubber, carbon black and butadiene, which are used to make rubber additives, have also risen, said Swaranjit Singh, director, tire materials, JK.