Tyre makers cut output as demand falls

摘要

The fall in demand for tyres caused by cut in production effected by major automobile companies in India in the wake of slowdown, rising interest rates and fuel prices have forced many Indian tyre companies to slash output. Three major car makers - Maruti Suzuki, Tata Motors and Hyundai Motor - have already scaled down production by 15-20% in view of a pile-up of unsold vehicles. About 70% of cars are sold on credit and the rise in interest rates, coupled with frequent increase in fuel prices, have turned out to be a disincentive for potential buyers.