Tyre firms draw up road map to steer through tariff jitters

Margin pressure Rising costs of natural and synthetic rubber have added to the pressure on tyre firms

- ANJALI SINGH

Despite low exposure to the US, Indian tyre companies are drawing up measures to offset the impact of potential tariffs at a time when raw material prices are already denting margins.

Leading players like Ceat, Apollo Tyres and JK Tyres downplayed the immediate financial impact of potential US tariffs and retaliatory duties from countries such as Sri Lanka, citing their current limited exposure to the American market.

Ceat Managing Director Arnab Banerjee said US sales formed a low single-digit share of the overall revenue, while Apollo CFO Gaurav Kumar pegged the company's US exposure at $100 million, out of its $3 billion topline.

The tyre makers, however, are drawing up contingency plans to offset any possible reciprocal tariffs.