Introduction
In a welcome move for vehicle owners across India, CEAT Limited has announced a price reduction across its tyre portfolio. The decision follows the government’s recent GST reform, which slashed tax rates for the tyre industry. CEAT confirmed that it will transfer the entire benefit directly to dealers and consumers, ensuring faster relief and lower mobility costs.
GST Reform: Why It Matters
The 56th GST Council meeting delivered a significant boost to the automotive ecosystem:
- Pneumatic tyres: GST lowered from 28% to 18%.
- Tractor tyres and tubes: Now taxed at only 5%.
This change not only reduces expenses for vehicle owners but also improves road safety by encouraging timely tyre replacement at affordable rates.
CEAT’s Stand: Customer First
Arnab Banerjee, MD & CEO of CEAT, called the reform “a timely and progressive step” and highlighted its wider benefits:
- Affordability: Reduced tyre costs across all segments.
- Safety: Lower prices encourage more frequent and timely replacements.
- Growth: Rationalized taxes support compliance and strengthen the formal sector.
Banerjee noted that CEAT’s quick action reflects its consumer-first commitment, ensuring savings reach end users without delay.
Who Benefits the Most?
The impact of this price cut extends across diverse sectors:
- Farmers: Lower tractor tyre costs reduce agricultural overheads.
- Transport & logistics: Fleet operators gain from cheaper bulk purchases.
- Commuters: Affordable replacement tyres for two-wheelers and cars.
The move ensures that both rural and urban mobility becomes safer and more economical.
Conclusion
Effective September 22, 2025, CEAT’s revised tyre prices will directly reflect the reduced GST rates. For consumers, it means lower costs of ownership; for the industry, it signals healthier compliance and sustainable growth.
By passing on 100% of the GST benefit, CEAT has not just lowered prices but reinforced its role as a trusted partner in India’s journey toward affordable, safe, and inclusive mobility.