CEAT Limited announced on Thursday that it will reduce prices across its entire tyre range to pass on the complete benefit of recently approved Goods and Services Tax rate cuts to consumers. The price reduction will take effect on September 22, 2025.
The decision follows the 56th GST Council meeting's approval of rate reductions for the tyre industry. The council reduced GST on new pneumatic tyres to 18 percent from the previous 28 percent rate. Tractor tyres and tubes will now attract a GST rate of five percent.
CEAT's Managing Director and CEO Arnab Banerjee said the reduced tax rates would benefit both the industry and consumers by lowering vehicle ownership and operation costs. He noted that more affordable tyre replacement could contribute to road safety and promote greater compliance within the sector.
The price cuts will apply to all CEAT products across commercial, agricultural, passenger vehicle and two-wheeler segments. The company stated it would transfer 100 percent of the tax benefit to its distribution channels and customers.
CEAT, established in 1958, is the flagship company of RPG Enterprises and ranks among India's leading tyre manufacturers. The company produces over 48 million tyres annually and maintains a presence in global markets across various vehicle categories.
RPG Group, founded in 1979, operates as a diversified conglomerate with businesses spanning infrastructure, technology, pharmaceuticals, energy and other sectors. The group has operations in over 135 countries and employs more than 35,000 people.