Despite severe competition from Chinese tyre imports, CEAT grew volumes 13 percent year-on-year. China tyre inflows have increased for truck radial and commercial vehicle segments and the company has requested the government for anti-dumping duty on tyres, said Anant Goenka, MD of the company. CEAT posted a revenue growth of 3.9 percent on the back of healthy original equipment manufacturer (OEM) sector performance, he told CNBC-TV18. The company has passed on price cut of 8-9 percent to its consumers, and has increased ad expenditure 70 -80 percent year-on-year. This is what has impacted CEAT's margins, Goenka added. He believes rubber prices will cool down during October-December and benefits of product mix will be seen in future. However, if raw material prices increase, the company may look at hiking prices, Goenka said. He also expects a slight drop in margin in later part of the year.
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