Research Tips 8.21% Growth in India Until 2013
India’s Automotive Tyre Manufacturers Association has predicted tyre consumption in the subcontinent will grow by five to six per cent in the coming months, yet information collated by Indian based business research firm CARE Research indicates that growth may reach a slightly higher rate. According to the company’s research, India’s tyre industry is expected to grow at 6.81 per cent in the 2010 financial year and at a compound annual growth rate of 8.21 per cent until the 2013 financial year.
Due to the industry downturn, India’s tyre industry only managed a 2.19 per cent increase in tonnage during the first nine months of the 2009 financial year, compared with 7.38 per cent growth the previous year. Tyre offtake to OEM customers, according to the research, dropped 6.17 per cent, while exports shrank 9.82 per cent.
When this new growth does occur, it will take place on the back of radial production. CARE Research reports that radialisation in the passenger car segment has reached 97 per cent, up from 95 per cent a year ago. Most manufacturers, the firm adds, have capex plans for radial TBR tyres and are not adding any new crossply tyre capacity.