Tyre shares settle on a mix note: JK Tyre, TVS Srichakra rise; MRF, Apollo Tyres fall

Meanwhile, MRF fell as much as 1.56 percent to an intraday low of Rs 75,265.65 apiece. It settled the session 0.83 percent lower at Rs 75,830 apiece on the BSE.

Shares of Balkrishna and Apollo Tyres closed 0.38 percent and 0.29 percent lower.

In an exclusive conversation with CNBC-TV18, Rajiv Budhraja, Automotive Tyre Manufacturers Association (ATMA) said that tyre production has lagged in September and October. The production is around 75,000 tonnes to 80,000 tonnes per month vs 1.5 lakh tonnes in last one year.

“Production has lagged way behind consumption in the last few months. The production of rubber this year is not even half of what we saw last year. Unexpected rains have also impacted production in October and November. Kerala had a longer spell of COVID-19 which hit production as well. Two successive cyclones also impacted weather patterns in Kerala," he said.

He further added that demand has been very strong and exports have done well. He is expecting a deficit of 5-6 lakh tonnes of rubber.

"We will have to import rubber to keep domestic manufacturing going," he said.