On September 12, CEAT Limited announced that CEAT lowers tyre prices across all product categories. The company said this decision will ensure that both customers and dealers receive the full benefit of the recent Goods and Services Tax (GST) reforms.
The Indian government recently reduced GST rates for tyres. The tax on new pneumatic tyres dropped from 28% to 18%. And the rate on tractor tyres and tubes fell further to just 5%. This move makes tyres more affordable, especially for farmers and those relying heavily on tractors.
CEAT confirmed that the revised prices will take effect from September 22. Managing Director and CEO Arnab Banerjee welcomed the tax reform, calling it timely and positive for both the tyre industry and consumers. He stressed that cheaper tyres encourage timely replacements, which not only reduces costs but also improves road safety.
Industry experts predict that this price reduction could boost tyre demand, with the domestic industry expected to grow by 7-8% this financial year. Strong replacement demand, festive season buying, and rural market optimism are likely to fuel this growth, even as urban markets remain slightly weaker.
For consumers, lower tyre costs mean extra savings. Families and businesses that rely on vehicles for daily use will benefit directly. Economists also note that GST reforms could reduce inflation by up to 75 basis points. And unlock nearly Rs 1 lakh crore in additional consumer spending, creating positive ripples in the broader economy.
Banerjee also reminded vehicle owners that replacing tyres on time is critical for safety. Worn-out tyres increase accident risks, while affordable replacements can make Indian roads safer for all.
With this move, CEAT has shown its commitment to passing on tax benefits directly to buyers. The initiative ensures safer driving, stronger demand, and cost savings. And it proves that CEAT lowers tyre prices is a win for both consumers and the economy.
