Pricing is a major factor for developing and determining a competitive position for a tyre company. In segments like cars or two-wheelers, the buyers are corporates and individuals who buy a chosen brand that offer comfort, even if it is a little costlier. This factor influences major decisions to maintain a good balance of their product portfolio between the commercial and consumer segments. Tyre prices in the local market are determined by the local demand-supply condition and brand preferences. However, major tyre companies are alleged to be working like a cartel.
Players deny the claim but, in past they have indulged in frequent price hikes.
However, there does not seem to be any basic research being undertaken by the domestic tyre companies. Design and structural configurations provided by the collaborator are suitably modified to suit Indian conditions. Indian companies seem to be more adept in carrying out development research like changing tread design and the reinforcement material. This has actually led to lower radialisation of tyres in the country. In developed countries, almost all passenger vehicles and LCV producers use radial tyres.