India has emerged as one of the world’s most competitive tyre markets due to vast availability of raw material (natural rubber) and ultramodern production facilities. However the FY 2009 was a quite disturbing period for the industry as the tyre demand-supply was severely hit by the recession. However, the effects did not last long and the industry posted a remarkable growth in FY 2010.
According to our research report “Indian Tyre Industry Analysis”, the Indian tyre market has attracted global manufacturers on account of encouraging growth figures. These manufacturers are expected to invest huge amounts into the industry over the next few years, with a major proportion of this investment directed towards the Truck & Bus (T&B) radial tyre capacity expansion.
As per the study, several greenfield plants are in pipeline to include new capacities. The implementation of brown-field projects is executed to cater to the growing demand. Greenfield units are expected to go on-stream in the coming years, just by the time when there will be an urgent need to bridge an increasing demand-supply gap in T&B radial tyre segment.
India is known to be an appetizer of invention and implements new technologies and products, and tyre industry is no exception to this. The concept of ‘green tyres’ is becoming a paradigm of the country’s competitive edge. This new category of tyres is now being widely accepted in India, and it is expected that in the coming years, the demand for green tyres will outperform the overall passenger tyre demand in the country.
India’s market for radial tyres in commercial vehicles section is still an infant. The passenger car segment switched to radial tyres in a short period of time, with radial tyre penetration level for the category reaching 98%. Besides, the penetration level of radial tyre has also started to increase rapidly in the light commercial vehicles and truck & bus segment. This segment will be the largest growth area over the next few years.
The report evaluates the future growth potential of India’s tyre industry, and provides statistics and information on market structure, tyre production by segments, exports and imports trends. Tyre market projections, in value terms, have been provided for all prominent segments, including passenger cars, utility vehicles and multi-purpose vehicles. This will provide clients with cutting edge market intelligence and help them make sound investment decisions.
