New Delhi: Tyre major Apollo Tyres on Sunday said it will soon hike prices of products due to increasing rates of rubber.
"In October, we had raised prices by about 2.5 per cent and we will be going for another price correction soon," Apollo Vice Chairman and Managing Director Neeraj Kanwar told reporters here on the sidelines of the India Economic Summit here.
He said imminent price hike in tyre was because of the increasing raw material prices.
Rubber prices are going beyond Rs 120 per kg, which is unreasonable, he said, adding the company will pass on the increase in commodity prices to customers.
When asked about the scenario in the domestic market, Kanwar said, "Demand in the third quarter of this fiscal will be lower than the second quarter."
The company would commission its Chennai plant in December and it would attain a maximum production capacity of 14,000 units by mid 2010, he said.
On Ashok Leyland`s European operations, Kanwar said, "We will launch the Apollo branded tyres early next year and it will be exported from here."
The company would sell its products in the European market through the distribution network of its subsidiary-- Vredestein.