Why are Tyre Stocks Gaining Today?

Indian tyre companies are experiencing a double boost – rising share prices and upcoming price hikes. Leading players like JK Tyre, Ceat, Apollo Tyres, and MRF witnessed significant gains on Monday (July 15), with some stocks surging over 13%. This impressive performance coincided with the Nifty reaching a new all-time high of 24,600.

JK Tyre emerged as the top gainer, climbing over 13%. Ceat and Apollo Tyres followed closely, with increases of 5.15% and 5%, respectively, while MRF rose by a solid 3%. This surge in share prices can be attributed, in part, to recent price hike announcements by major tyre manufacturers.

MRF, the industry leader, took the lead by announcing a price increase effective July 18th. Prices are set to rise across most segments, with truck tyres seeing a 2% increase, passenger car and radial tyres experiencing a 3-7% hike, and two-wheeler tyres remaining unaffected for now. This move marks MRF’s first price hike since a minor reduction in certain categories earlier this year. Notably, the overall blended increase is estimated to be around 2%, which still lags behind the significant cost increases witnessed in the past few months.

Other major players are following suit. Apollo Tyres has announced a 1% to 2.5% price increase across all categories except for the Farm and Vredestein ranges. Ceat is implementing a similar strategy, with a 1% to 2% increase planned for the SCV (Small Commercial Vehicle) and PCR/UVR (Passenger Car Radial/Utility Vehicle Radial) segments.

These price hikes are a welcome development for tyre companies grappling with rising input costs. Additionally, a recent channel check conducted by Emkay Global, a domestic brokerage house, paints a positive picture of the industry’s future.

The report indicates healthy fundamentals and sentiment within the trucking industry, with an upcycle expected to begin in the financial year 2026. Emkay further highlights the narrowing gap between Indian tyre companies and multinational manufacturers, alongside improving demand and a growing trend towards premiumisation within the sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.