Has CEAT Reduced Tyre Prices to Share GST Benefits?
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Synopsis
CEAT Limited has made headlines by slashing tyre prices across all segments, reflecting the recent GST reforms. This strategic move not only aims to enhance affordability for consumers but also promises to stimulate the tyre industry amid changing market dynamics. Discover how this decision could impact vehicle ownership costs and industry growth.
Key Takeaways
- CEAT reduces tyre prices to reflect new GST rates.
- 100% of GST benefits will be passed to consumers.
- New prices effective from September 22.
- GST on pneumatic tyres reduced from 28% to 18%.
- Domestic tyre industry expected to grow by 7-8% this fiscal year.
New Delhi, Sep 12 (NationPress) CEAT Limited, an Indian tyre manufacturer, has announced a reduction in tyre prices across its entire product lineup to transfer the advantages from the recent Goods and Services Tax (GST) modifications.
The company confirmed that it will extend 100 percent of the GST benefits to its distribution channels and customers, as stated in an official release.
The price cuts, which align with the new GST rates, will take effect for all CEAT products starting September 22.
The GST on new pneumatic tyres has been lowered to 18 percent from 28 percent, while tractor tyres and tubes will now be subject to a diminished GST rate of 5 percent.
CEAT’s Managing Director and CEO, Arnab Banerjee, described the GST rationalization as a timely and progressive measure.
"The reduced GST slabs will significantly benefit both the tyre industry and consumers. It will decrease the overall cost of vehicle ownership and operation for customers across various segments, making it easier to replace tyres," Banerjee noted.
He emphasized that timely tyre replacements will enhance road safety, further suggesting that this move will encourage formalization and compliance within the industry, while promoting sustainable growth.
According to industry sources, the domestic tyre sector is projected to grow by 7-8 percent this fiscal year, driven by replacement demand. This demand will likely be bolstered by factors such as positive rural sentiment, festive season needs, and the anticipated impact of rate cuts on consumption, despite a sluggish urban demand.
Growth in the sector is also fueled by ongoing investments in capacity expansion, enhanced manufacturing efficiency, and a stronger emphasis on R&D capabilities.
India’s GST reforms are anticipated to reduce headline inflation by as much as 75 basis points and unlock up to Rs 1 lakh crore in consumer spending.
IANS
aar/na
Point of View
I believe CEAT's decision to reduce tyre prices is a significant move that aligns with the broader economic reforms in India. By passing on the GST benefits to consumers, CEAT not only strengthens its market position but also contributes to the overall growth of the tyre industry. This proactive approach resonates with the nation’s push for economic stability and consumer welfare.
NationPress
12/09/2025
Frequently Asked Questions
What prompted CEAT to reduce tyre prices?
CEAT decided to cut tyre prices to transfer the full benefits of the recent GST reforms to its customers and distribution channels.
When will the new prices be effective?
The new prices reflecting the reduced GST rates will take effect from September 22.
What are the new GST rates for tyres?
The GST on new pneumatic tyres has decreased to 18% from 28%, while tractor tyres and tubes will now be taxed at 5%.
How will this price reduction impact consumers?
This reduction will lower the cost of vehicle ownership and make tyre replacements more affordable, promoting road safety.
What is the expected growth rate of the tyre industry?
The domestic tyre industry is projected to grow by 7-8% this fiscal year, driven by replacement demand and favorable market conditions.
