Supported by a vibrant home automotive trade, the Indian tire trade has been among the many fastest-growing on a worldwide scale through the previous decade. With a complete of 66 manufacturing vegetation and 41 tire producers (in all of the sub-segments), the Indian tire trade registered a turnover of $8.5 billion within the monetary 12 months 2020-21. Exports of tires from the nation stood at $1.9 billion throughout the identical interval.
Amidst COVID-19 and a pointy contraction in car gross sales, tire demand has recovered sharply in FY22. Based on provisional figures, the Indian tire trade has registered a progress of practically 8% by way of manufacturing quantity.
Balkrishna Industries (BKT), MRF, Apollo Tyres, CEAT, JK Tyre & Industries, Goodyear India, TVS Shrichakra, Pix Transmissions and Indag Rubber are main tire-producing corporations in India.
Alternative volumes are at record-high ranges with enhancing financial actions whereas OE (authentic tools) gross sales are partly affected by the sluggish demand for two-wheelers and provide constraints impacting passenger car manufacturing.
Alternative demand dominates the Indian tire market. Alternative tire gross sales account for about 70% of whole tire gross sales. Unique tools producers (OEM) account for the remaining 30%. The prime motive for the excessive substitute demand within the nation is the low ratio of latest car gross sales to present registered automobiles within the nation. At present, the ratio is a meager 10.17%. (New car gross sales had been 22.9 million in 2021 in comparison with registered automobiles at 233 million).
Leap in Exports
Official numbers for exports from India haven’t but been launched by the Automotive Tire Producers Affiliation (ATMA) of India, however in keeping with provisional figures, Indian tire producers registered an enormous leap in exports throughout FY 2021-22.
In INR (Indian rupee) phrases, the trade registered whole exports of INR 211.78 billion ($2.68 billion) price of tires in 2021-22. At current, tires manufactured in India are being exported to over 170 international locations. The US grabs the biggest chunk of India’s tire exports with 19% in 2021-22, adopted by Germany (7%), Brazil (6%), UK (4%) and France (4%).
“China was once actually huge in tire exports to the US, Europe and different world markets. Nevertheless, strict anti-dumping duties on Chinese language imports in these international locations have enabled Indian tire producers to achieve an enormous market share in these international locations. Exports will stay a key progress pillar for our firm within the brief and medium time period,” stated Anant Goenka, managing director for CEAT.
Indian Automotive Manufacturing
The Indian automotive trade registered modest progress within the 2021-2022 monetary 12 months, which resulted in March. Based on information from the Society of Indian Vehicles Producers (SIAM), India produced a complete 22.9 million automobiles together with passenger automobiles, business automobiles, three-wheelers, two-wheelers and quadricycles from April 2021 to March 2022. That is in comparison with 22.7 million models from April 2020 to March 2021.
Complete passenger car gross sales elevated from 2.7 million to over 3 million models. Gross sales of passenger automobiles decreased from round 1.5 million to 1.467 million models, whereas gross sales of utility automobiles elevated from 1.061 million to 1.489 million models from April 2021 to March 2022 in comparison with the earlier 12 months. Throughout the identical interval, 113,265 models of vans had been offered in comparison with 108,841 models.
General business car gross sales elevated from 568,559 to 716,566 models. Gross sales of medium and heavy business automobiles elevated from 160,688 to 240,577 models and light-weight business automobiles elevated from 407,871 to 475,989 models.
Gross sales of three-wheelers elevated from 219,446 to 260,995 models, and two-wheeler gross sales decreased from 15.120 million models to 13.47 million models.
The Indian Ministry of Highway Transport and Highways proposed a “star score” or labeling norms for tires to raised inform shoppers on tires that present higher fuel-savings and comfy driving. The labeling was proposed final 12 months as a part of an initiative of the Bureau of Power Effectivity (BEE) to offer details about the energy- and cost-saving potential of merchandise. At present,
it’s voluntary to be label tires in India. The proposal is within the preliminary stage, however it’s anticipated that the Indian authorities will take motion on it quickly.