Tyre Stocks Rally: Apollo, Ceat, Balkrishna Share Price Surge Up to 5% as Falling Costs Boost Outlook

On July 02, 2025, tyre company stocks like Apollo Tyres, Balkrishna Industries, Ceat, MRF, JK Tyre & Industries, and TVS Srichakra climbed as much as 5% on the BSE in morning trading. This rally happened even as the overall market moved in a narrow range. Investors are hopeful that tyre demand will improve going forward.

At 9:40 AM, the BSE Sensex was slightly up by 0.06% at 83,751.

Recent Stock Performance Lagged Behind Market

Even though stocks rose today, Apollo Tyres, JK Tyre, and Ceat had been underperforming for the past month. These companies’ shares had fallen between 1% and 3% in the last 30 days, compared to a 3% rise in the benchmark index.

June Auto Sales Show Mixed Results

In June 2025, automobile wholesale numbers showed different trends across segments:

• Passenger Vehicles (cars and SUVs): Domestic sales fell slightly year-on-year due to weak local demand, although exports grew in double digits.
• Two-Wheelers and Tractors: These segments saw strong double-digit year-on-year growth.
• Commercial Vehicles: Volumes dropped by 3% compared to last year.

The tractor segment performed well thanks to expectations of an above-normal monsoon. However, rising raw material costs and price increases could still weigh on demand.

Tyre Companies Focused on Margin Recovery

On input costs, Apollo Tyres management said that prices are expected to remain stable quarter-on-quarter in Q1 FY26. From Q2 FY26 onward, the benefit of falling crude oil-related costs should start to reflect in the financial results. However, the company also noted that natural rubber prices may stay high in the near term because the rainy season is starting. This period, known as the lean period, usually results in tighter rubber supplies.

Read More: Key Financial Changes from July 2025: Aadhaar-PAN Linking, Taxes, Railways, HDFC Credit Cards, and More!

Conclusion

Tyre stocks like Apollo, Ceat, and Balkrishna have gained momentum as investors bet on demand recovery and easing costs. While some risks remain—especially around natural rubber costs—the sector is expected to benefit from improving auto sales and government spending on infrastructure, giving tyre makers a clearer path to growth in FY26.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in securities are subject to market risks. Read all related documents carefully before investing.