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Good News for Malaysian Bikers? India's Tyre Tax Cuts Could Mean Cheaper Tyres!

Hey Malaysian riders, ever felt the pinch when replacing your motorcycle tyres? Well, there might be some good news on the horizon! India's CEAT, a major tyre manufacturer, is expecting a boost in demand for their motorcycle tyres, especially for entry-level bikes, thanks to recent tax cuts in India. What does this mean for us?

According to a Reuters report, CEAT anticipates that the reduction in consumption tax will significantly increase demand for their tyres in the tractor and entry-level motorcycle segments.

The Indian government has slashed taxes on a wide range of consumer goods, including tyres. Most tyres will now be taxed at 18% instead of 28%, while tractor tyres will see an even bigger drop from 18% to just 5%, effective September 22, 2025.

CEAT's Managing Director and CEO, Arnab Banerjee, believes that these tax cuts will boost sales of commuter motorcycles, particularly in rural areas. The company plans to pass on the reduced costs to consumers.

What This Means For Malaysian Riders

While these tax cuts are specific to India, the increased demand and production efficiency could potentially lead to lower tyre prices globally, including Malaysia. It is crucial to see the real impact once CEAT starts to produce and meet the demands.

Here’s what we might expect:

• Potentially cheaper CEAT tyres in the Malaysian market.
• Increased competition among tyre manufacturers, possibly leading to price drops across the board.
• More affordable options for budget-conscious riders.

However, other factors such as import duties, currency exchange rates, and local market conditions will also play a significant role in determining the final price we pay at Malaysian tyre shops.

CEAT's Growth and Future Plans

CEAT's smaller farm segment makes up about 10% of its revenue, while commuter motorcycles make up a significant portion and bulk of India's two-wheeler market. The company is projecting double-digit revenue growth in fiscal year 2026, driven by replacement demand for both two-wheeler and commercial vehicle tyres.

In the April-June quarter of 2025, CEAT reported a 10.5% increase in revenue, reaching 35.3 billion rupees (US$399.80 million), primarily driven by sales to two-wheeler, truck, and bus customers. For fiscal year 2025, revenue increased by 14%.

"We expect sales of commuter motorcycles to go up in semi-urban and rural households, and farm sales also could go up," - Arnab Banerjee, Managing Director and CEO of CEAT.

Keep An Eye Out!

It's still early days, but this news from India could potentially translate into savings for Malaysian motorcycle enthusiasts. Keep an eye on tyre prices in the coming months and see if these tax cuts have a positive ripple effect on our local market! Time to upgrade those slicks!