The growth momentum in the Indian tyre industry is fast picking up, particularly in the medium and heavy commercial vehicle and two-wheeler segments. At the current rate, more initiatives are expected in the next few months as the tyre industry continues to be on a higher growth trajectory.
Of significance note here is the finding by Tech Sci Research on India Tyre Market Forecast and Opportunities, 2019, that India’s tyre industry will enjoy a significant boost in domestic demand in the next five years. This would largely be fuelled by the consistent growth in road infrastructure, expanding radialisation and the rising per capita income. With Indian tyre production projected to touch 191 million units by the end of 2016, the industry is also witnessing strong capacity expansion across all segments, with the tyre majors preparing themselves to cash in on the expected auto industry growth.
Another attractive feature is that most Indians now aspire to have their own transport, encouraged as they are by the vast improvement in the road network.
The mood at the Tyrexpo India 2015 held at the Chennai Trade Centre was really upbeat with the general impression among the participants that the Indian tyre industry would continue its upward trend within the international market, which, in turn, would lead to more professional products and services being offered. Based on the current growth trend, India and China will eventually become the next two great forces in the global tyre market.
According to industry experts, the Indian tyre market really enjoys considerable sales volume overseas. There is growing demand, particularly for high-technology products, backed by a team of engineers, designers and sales representatives striving to boost exports.
Further, the growing trend among Indians to have their own vehicles instead of depending on public transport fully reflects the scope for higher demand for vehicles and in turn for tyres.