Ceat, India's fourth-largest tyre maker, last week raised prices of tyres 2-2.5% across categories, and expects margins to improve from September quarter due to a fall in prices of rubber, key raw material, a senior official said.

"Rubber prices have come down from its peak. It should benefit us from Q2, but it will reflect clearly in the Q3 as we keep inventory of 2-3 weeks," Anant Goenka, deputy managing director, told Reuters in an interview on Tuesday.

However, the company has no plans to raise tyre prices further.

Natural rubber makes up more than 40% of the cost of a tyre and its prices have fallen 13% from its peak of Rs 24,300 per 100 kg struck on April 5.