CEAT Kelani Holdings, which manufactures pneumatic tyres, has begun passing on the full benefit of the recent tax reductions to customers. While every segment of tyre users would benefit from the resulting reduction in the prices of tyres, the overall impact would be most significant in commercial segments, particularly bus and truck tyres and three-wheeler tyres, where the CEAT brand accounts for market shares of 65 per cent and 50 per cent respectively, the Company said.
“The decision to pass on of the full benefit of the tax reduction to our customers reduces operating costs in the transport of passengers and goods,” CEAT Kelani Managing Director Ravi Dadlani said. “We, therefore, welcome the government’s decision to reduce taxes, and hope our dealers will in turn pass on the benefit to their customers.” He said that with the timely management by CEAT Kelani of the release of stocks to the market, the reduced prices would now apply to the bulk of the inventory of CEAT tyres held by dealers countrywide.
CEAT Kelani’s manufacturing operations in Sri Lanka encompass pneumatic tyres in the radial (passenger cars, vans and SUVs), commercial (Bias-ply and radial), motorcycle, three-wheeler and agricultural vehicle segments. The brand accounts for market shares of 33 per cent in the radial segment, 65 per cent in the Truck category, 80 per cent light truck tyre category, 50 per cent in the three-wheeler tyre segment, 32 per cent in the motorcycle tyre segment and 72 per cent in the agricultural vehicle tyre category, a company spokesman said.