The tyre and tube market in Bangladesh is facing significant price hikes due to global increases in raw material costs and the disruption caused by the closure of Gazi Tyres, a key local manufacturer. Gazi Tyres, which holds over 50% of the market share, halted operations following arson attacks on its factory, leading to price increases of Tk 200 to Tk 800 per tyre in the past week for various vehicles, including motorcycles and auto-rickshaws.
The price surge is further compounded by rising costs of imported rubber, freight, and bank interest, with tyre manufacturers like Meghna Group and Rupsha Tyres attributing the hikes to these factors rather than Gazi’s suspension alone. The market may face supply shortages, particularly in the truck and bus segments, as the disruption continues. Businesses are closely monitoring the situation, which could push transport fares higher.
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