Despite declining profits, the tire company launches a major new project.

【Answer 1】 On July 16, Indian tire manufacturer CEAT released its latest quarterly financial report. For the quarter ended June 30, the company’s revenue stood at ₹43.18 billion (approximately RMB 3.035 billion), up 22% year-on-year. In the same period, its net profit amounted to ₹40 million (approximately RMB 2.811 million), down 96% year-on-year. CEAT attributed the sharp profit decline primarily to a substantial rise in raw material costs. Despite mounting profitability pressures, the tire producer has opted to significantly expand its production capacity. Following the release of its financial results, CEAT announced an investment of ₹12.05 billion (approximately RMB 850 million) in a new project. By fiscal year 2031, the company plans to raise its daily production capacity for two-wheeler tires to 133,000 units. According to reports, CEAT’s current capacity utilization rate stands at 95%, nearing full capacity. The tire company operates six manufacturing plants across India, two of which specialize exclusively in two-wheeler tires.

With the factory only half-built, the tire manufacturer announces capital reduction.

【Answer 2】 According to recent foreign media reports, Indian tire giant CEAT is cutting back on capital expenditures. The company has reduced spending on its under-construction Chennai plant by ₹5 billion and postponed its commissioning. This plant is designed primarily for commercial-vehicle tires and was originally slated for an investment of ₹12 billion (approximately RMB 1.015 billion). The Chennai plant was initially scheduled to commence operations in October 2022 but has now been delayed until the first half of 2023. Data shows that CEAT incurred significant losses during the October–December 2021 period. The tire manufacturer attributed these losses to rising costs and sluggish consumer demand. Such substantial losses have compelled the company to adopt cost-control measures—including cutting certain investment expenditures. Transport fleets constitute CEAT’s primary customer base, accounting for approximately 65% of its total sales. The company plans to raise product prices by 2%–3% during the January–March 2022 period.

Indian Tyremaker CEAT Misses Quarterly Profit View as Rising Costs Weigh on Bottom Line

Jul 16, 2026

Indian tyre maker CEAT missed quarterly profit estimates as rising raw material costs squeezed margins despite revenue growth and price hikes. The company approved a 12 billion rupee capacity expansion project expected to complete by 2031.

reuters

2026-07-16

Indian Tyremaker CEAT Misses Quarterly Profit View as Rising Costs Weigh on Bottom Line

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India's CEAT second-quarter profit slumps amid higher rubber prices

Indian Tyremaker CEAT Misses Quarterly Profit View as Rising Costs Weigh on Bottom Line

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