New Delhi, Nov. 5 -- A sharp rise in natural and synthetic rubber prices, driven by erratic weather and the West Asia war, is squeezing the margins of India's tyre makers and prompting them to consider further price hikes. And strong demand from automakers is also seen giving them some room to pass on higher costs, according to companies and industry experts.

Top tyre makers, such as Ceat and JK Tyres, have seen their margins erode due to a rise in prices of raw materials, including rubber. Domestic prices of RSS4 rubber have risen 62% to Rs.300 a kg from Rs.185 in November 2025, per data from CMIE and the Rubber Board. Rubber makes for about half the cost of manufacturing a tyre.

JK Tyres' earnings before interest, tax, depreciation an...