Moreover, there is marginal technological difference between tyres of different brands. Which has led to tyres becoming a commodity with low brand value-at least in the commercial vehicles segment. Companies keep on developing different categories of tyres with different sizes and designs to match the competitors' products. However, the future is likely to be different since companies are investing in technology. Marketing too is going to become technology-driven.
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.