Research: Indian replacement tyre market to surpass 305 billion rupees 2014
Increasing numbers of vehicles on Indian roads will drive the Indian replacement tyre market past the 305 billion rupee (£4 billion, 4.8 billion, US$6 billion) value level, according to research conducted by TechSci research.
The Indian tyre market remains one of the fastest growing markets globally. Strong developments in almost all major automobile segments have prompted tyre demand in the country. Additionally, tyre manufacturers are ramping up their production capacities in line with growing automobile sales. According to TechSci, these capacity expansion plans will ultimately result in tyre production growth of over 13 per cent (CAGR) during the years between 2011 and 2017.
The Indian replacement segment constitutes more than 50 per cent of the industry and is therefore a key focus area for the tyre manufacturers. During 2010 overall unit sales in the replacement segment were close to 50 million tyres dominated by sales of motor cycle products followed by passenger car tyres.
China the only ‘threat’
According to Karan Chechi, research director at TechSci, there are no major threats for industry growth in coming years other than rising imports from other countries specially China. The exponentially increasing demand from automobile manufacturers and replacement market will continue to drive the Indian tyre industry landscape in coming years.