Goodyear India reported a 58.5% fall in its second-quarter profit, which amounted to 157.4 million rupees ($1.8 million). This decline was primarily attributed to elevated rubber prices and dampened demand in the Indian market. The company's revenue from operations also decreased by 1.1% to 6.82 billion rupees for the three months ended September 30.
The reduction in volume and raw material inflation were cited as key factors impacting the year-over-year profit. International rubber prices experienced a sharp uptick in the last two months of the quarter, increasing by 20% due to global supply shortages. This directly pressured the subsidiary's margins.
The challenging market conditions in India, including a 1.8% year-on-year drop in passenger vehicle sales and a 0.7% dip in production during the September quarter, contributed to the weak demand. This regional performance highlights the impact of external economic factors and commodity price volatility on Goodyear's global operations.
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