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3 min read | Updated on September 02, 2025, 15:53 IST
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Shares of TVS Srichakra were also trading higher by 1.16% on NSE, while Balkrishna Industries (1.68%) and Tolins Tyres (4.8%) climbed as well
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ATMA's looks ahead to discuss reforms proposed by the Centre that mooted most goods be charged at either 5% or 18%. | Image: Shutterstock
Shares of tyre companies rallied on Tuesday, September 2, ahead of the Automotive Tyre Manufacturers Association (ATMA) meeting with the GST Council, chaired by the Union Finance Minister Nirmala Sitharaman, on September 3 and 4.
ATMA on Monday sought a reduction of GST rates on tyres for automobiles to 5% from the current 28%, while urging the government not to treat them on par with luxury goods, citing their cost impact on key sectors such as transportation, agriculture, mining, and construction.
Following this, tyre stocks surged, with MRF hitting a 52-week high of ₹154,495. The stock settled 5.55% higher at ₹152,870 on NSE.
Other tyre stocks like Apollo Tyres, Ceat and JK Tyre Industries also rallied 3.8%, 5.45% and 5.7%, respectively. Shares of TVS Srichakra were trading higher by 1.16% on NSE, while Balkrishna Industries (1.68%) and Tolins Tyres (4.8%) climbed as well.
ATMA's looks ahead to discuss reforms proposed by the Centre that mooted most goods be charged at either 5% or 18%.
At present, all major categories of automotive tyres attract GST at 28%, the highest tax slab, whereas tractor tyres and aircraft tyres are taxed at 18% and 5%, respectively, the Automotive Tyre Manufacturers Association (ATMA) said in a statement.
The tyre makers' body further said lowering GST on automotive tyres would directly reduce vehicle operating costs and help bring down logistics costs, while also extending benefits to farmers, small traders, service providers, and the infrastructure and mining sectors.
"Tyres are indispensable to the movement of people and goods across India. Given their essential role in supporting national priorities of agriculture, logistics efficiency and infrastructure, tyres should not be treated on par with luxury goods," ATMA Chairman Arun Mammen said.
Citing a communication to Union Finance Minister Nirmala Sitharaman, the Automotive Tyre Manufacturers Association (ATMA) said it has emphasised that tyres are an essential enabler of mobility across all segments – trucks and buses, passenger cars, two- and three-wheelers, tractors, construction and mining equipment – and therefore merit much lower taxation under the proposed GST rate rationalisation exercise.
ATMA said it has also flagged concerns regarding potential accumulation of unutilised Input Tax Credit (ITC) with tyre dealers once rate changes are implemented.
Meanwhile, the committee had also said that the steep tariff imposed by the US will severely constrain Indian tyre makers' ability to sustain the momentum established in the last few years in America, and there is a need for immediate policy support to help mitigate the adverse impact.
Tyre exports from India to the US will face a tariff of 50% on most categories and 25% on specific categories.
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