French tyre major Michelin has announced a hike in prices for tyres it will sell in India, Africa and the Middle East. The company will increase its tyre prices by up to 8 percent across all segments. This price revision addresses the increase of raw material cost, natural rubber in particular, global transportation cost and other market factors. This increase is effective March 2021 and is applicable to all Michelin Group brands.
The company’s sales in India have been affected by a recent decision by the Government to restrict import of tyres. Availability has been an issue for those who swear by the brand. In an official statement which Michelin has released in response to the situation, it says, “Owing to the ongoing import restrictions for tyres we have experienced supply shortages recently. For Michelin India, Government of India has recently issued a limited import license, which will also be utilized for importing passenger car tyres to address very high demand for our tyres in a restricted manner for the time being.”
It further states, “Consequently, to streamline our supply chain in the current situation, Michelin India has decided to prioritize selling of these limited stocks only through its priority partners currently, who has equally invested in expanding our distribution footprint in the country. Michelin is committed to the Indian market and continues to significantly invest in Government of India’s ‘Make in India’ priorities through its Greenfield manufacturing plant for Truck and Bus radial Tyres in Chennai and a state of the art innovation hub in Pune. We continue to work with Government of India to address this issue and are hopeful of an early resolution.”