A Progressive Move: Apollo Tyres Reduces Prices Following Landmark GST Cut
In a significant and consumer-centric move, Apollo Tyres Ltd. has announced a price reduction across its entire product portfolio in India, effective September 22, 2025. This decision directly aligns with the recent government reforms that have delivered a much-needed boost to the Indian automotive and agricultural sectors. The price cut is a direct response to the 56th GST Council meeting, which approved a reduction in Goods and Services Tax (GST) rates for the Indian Tyre Industry.
The GST Council’s progressive decision has lowered the Goods and Services Tax on new pneumatic tyres from 28% to 18%. This is a major change, as the automotive tyre industry has long been categorized under the highest tax slab, a point of contention for many industry bodies who argued that tyres are essential goods, not luxury items. In addition, the GST on tractor tyres and tubes, a critical input for the farming community, has been slashed from the previous rate to an even lower 5%.
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Apollo Tyres has welcomed this decision and, in a show of commitment to transparency and customer value, has pledged to pass on the full 100% benefit of these reduced tax rates directly to its customers.
The Tangible Impact: Price Reductions Across All Segments
The price reduction will be applicable across Apollo Tyres’ entire product portfolio, bringing tangible benefits to a wide range of consumers. The revised pricing, which comes into effect on September 22, will cover passenger car tyres, commercial vehicle tyres, agricultural and two-wheeler tyres.
Customers can expect significant savings, with passenger vehicle tyres seeing a price reduction of between ₹300 and ₹1,500. For commercial vehicle operators, the price cut is even more substantial, with truck and bus radial tyres set to decline by around ₹2,000. This is expected to directly lower vehicle ownership and operation costs, providing a much-needed boost to fleet operators, farmers, and everyday motorists alike.
The move is particularly beneficial for the agriculture sector, where tractor tyres and tubes now attract a significantly lower GST rate. As an industry, tyres are indispensable to the movement of people and goods, and this policy change will help reduce logistics costs and increase the affordability of essential equipment for farmers, thereby supporting national priorities.
A Broader Industry Shift: The Impact of GST Reforms
Apollo Tyres is not alone in welcoming this policy change. The automotive industry, in general, has hailed the GST Council’s decision as a positive step towards injecting new growth momentum into the sector. Industry bodies, such as the Automotive Tyre Manufacturers Association (ATMA), had been actively advocating for a lower GST rate on tyres, arguing that the previous 28% tax slab inflated vehicle operating and logistics costs.
The reduction is expected to have a ripple effect, increasing demand for automobiles and ancillary industries like tyres, batteries, and auto components. As demand rises, it will create a multiplier effect, boosting MSMEs across the supply chain and generating new job opportunities in manufacturing, sales, and maintenance.
The GST Council’s decision is also expected to enhance road safety. As high prices often discourage vehicle owners from replacing worn-out tyres, making tyres more affordable will encourage timely replacements, reducing the risk of accidents. By passing on the full tax benefit, Apollo Tyres is contributing to a safer and more sustainable mobility ecosystem in India.
Commitment to Customers and Transparency
Rajesh Dahiya, Vice President, Commercial (India, SAARC and Southeast Asia) at Apollo Tyres, affirmed the company’s commitment to transparency, stating, “We are transferring 100% of the tax benefits to our consumers”. He emphasized that the company has already begun working closely with its extensive distribution network to ensure the seamless implementation of the new pricing structure across the country.
This proactive approach, combined with the government’s forward-looking policies, is set to create a favorable environment for both the industry and consumers, driving growth and making mobility more accessible and affordable for all Indians. The timing of this price cut, ahead of the festive season, is also perfectly poised to bring relief to countless motorists and commercial operators.
Frequently Asked Questions (FAQs)
Q: What is the new GST rate on tyres? A: The GST rate on new pneumatic tyres has been reduced from 28% to 18%. For tractor tyres and tubes, the rate has been reduced to 5%.
Q: When will the new prices be effective? A: The revised pricing for Apollo Tyres’ products will be effective from September 22, 2025.
Q: How much of a price reduction can customers expect? A: The price reduction will range from ₹300 to ₹2,000, depending on the product. For passenger car tyres, the reduction is between ₹300 and ₹1,500, while for truck and bus radial tyres, it is around ₹2,000.
Q: Does the price cut apply to all of Apollo Tyres’ products? A: Yes, the revised pricing is applicable across the entire product portfolio, including passenger car, commercial vehicle, agricultural, and two-wheeler tyres.
Q: Why was the GST on tyres reduced? A: The GST was reduced to lower the cost of vehicle ownership and operation, providing a boost to fleet operators and farmers. Industry bodies had argued that tyres are essential goods and should not be taxed at the highest rate.
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