Tyre market revenues in Mexico grew at around 19 per cent compound annual growth rate (CAGR) between 2009 and 2012, according to a report published by Research and Markets.
The combination of Mexico’s relatively cheap skilled labour, proximity to the United States, membership of NAFTA and 12 free trade agreements with world’s growing economies such as EU, Japan, Canada, and the United States, are said to have made the country “an ideal production centre for automobiles and components”. However the report also suggests that the automobile population in Mexico is underperforming with only 275 cars per 1,000 people as of 2012.
OK so the fact that China is the world’s largest tyre producer, the largest car maker, has the largest population and is likely to be the largest economy soon means that it is massively premature to write off the People’s Republic. Rapid growth and the huge scale of Brazil, Russia and India means these markets are still should be the focus of much attention. However, many international businesses have already latched onto this. So if everyone is competing for what they perceive as the same low-hanging fruit other opportunities could be going missing…or at least that is the question that is being raised in banking circles.
As Tyres & Accessories' November issue went to press President Barrack Obama and David Cameron were out banging the drum for American and British business in India and China respectively. 24 hours after Obama set foot in the subcontinent, the Sunday Telegraph's resident cartoonist was portraying the leaders of two of the richest countries in the western world as beggers seeking scraps from two so-called “emerging markets.”
An article published by the Indian business daily Mint indicates that three tyre companies owned by Ruia Group chairman Pawan Kumar Ruia are being investigated for tax incongruities. The probe is focusing upon the presence of “hawala” activities, a name given to the transfer of money in order to avoid taxes without a corresponding physical or electronic transfer of funds. The companies under investigation are Dunlop India Ltd, Falcon Tyres Ltd and Monotona Tyres Ltd.