Image Source: IMA India
CEAT’s Chief Financial Officer highlighted two critical developments: the rupee’s depreciation is raising concerns over imported raw material costs, while the two-wheeler tyre segment has recorded the strongest growth since tax cuts. The company is balancing currency pressures with demand-led expansion in India’s automotive sector.
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India’s tyre manufacturer CEAT Ltd is navigating a mixed landscape of challenges and opportunities. In a recent statement to Reuters, CFO Kumar Subbiah emphasized the dual impact of currency movements and sectoral demand shifts.
Key Highlights
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Rupee depreciation has emerged as a pressing concern, particularly because CEAT relies on imported raw materials such as natural rubber and crude derivatives. Rising costs could weigh on margins if the currency continues to weaken.
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The two-wheeler tyre segment has shown the most robust growth since the government’s tax cuts, underscoring strong demand in the affordable mobility category. This segment has become a key driver of CEAT’s overall performance.
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While raw material inflation remains a challenge, CEAT’s revenue growth in recent quarters reflects resilience in domestic demand, especially in motorcycles and scooters. The company continues to focus on balancing cost pressures with volume-led expansion.
Sources: Reuters, Business Standard, BT TV Market Today
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