The tyre maker, which currently has a 20 percent share of the passenger car radial (PCR) category in the aftermarket tyre segment in India, aims to increase its share and outlines an investment of Rs 600 crore into its operations.
05 Dec 2023 | 15575 Views | By Mayank Dhingra
Bridgestone India, the domestic arm of the Japanese tyre giant Bridgestone Corporation, aims to achieve a 25 percent share of the country's passenger car radial (PCR) aftermarket segment by 2030, thereby notably growing its share from the existing 20 percent.
The company has outlined an investment roadmap of Rs ...
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Bridgestone India, the domestic arm of the Japanese tyre giant Bridgestone Corporation, aims to achieve a 25 percent share of the country's passenger car radial (PCR) aftermarket segment by 2030, thereby notably growing its share from the existing 20 percent.
The company has outlined an investment roadmap of Rs 600 crore over the next three years into capacity and competency expansion at its two plants - one in Chakan, near Pune, and another one in Kheda, Madhya Pradesh - to achieve this growth target. While the two facilities presently have a combined installed capacity of 29,000 PCRs every day, the capacity is slated to grow by 3,500 units per day in the next two years, in line with the anticipated market demand.
“We are looking to fortify our aftermarket presence, and in an 8-player market, want to establish an undisputed leadership by growing our market share to 25 percent over the next five- to- seven years,” Rajarshi Moitra, Chief Commercial Officer, Bridgestone India, told Autocar Professional.
The company is also looking to premiumise its products, and grow its ‘value’ market share from being currently pegged at 23 percent, to around 29 percent with a 25 percent overall market share. “The market is shifting towards SUVs, and premium sedans, and given our product superiority and brand salience in these vehicle categories, we are growing ahead of the market,” Moitra added, while also mentioning about the company’s push towards more sustainable products.
Direct-OEM supplies also form a key element of Bridgestone India’s business, with the company’s 45 percent revenue share coming from OEM contracts with players such as Tata Motors, Mahindra & Mahindra, Honda Cars India, Toyota, and BMW among others. “Bridgestone pioneered the radial car tyre category in India in 1998 and we have established a clear leadership in the OEM segment with our strong relationships with vehicle manufacturers, based on product superiority,” he pointed out.
Bridgestone India entered the truck-and-bus radial segment 10 years ago, and has carved a niche for itself in the truck radial category.
Diversification into new-age solutions
Aftermarket forms the remaining 55 percent of the company’s business, wherein it retails its products through over 4,500 touchpoints spanning across Tier-1, Tier-2, and Tier-3 towns directly. The number also includes over 800 ‘Bridgestone Select’ premium tyre outlets opened at strategic locations across the country. “We have doubled our network in the last four years, and we now plan to grow our distribution by an 8-10 percent average year-on-year rate, as we aim to fill some white spaces in Tier-2 and Tier-3 towns. However, the focus over the next few years, is also going to be around differentiated customer experience, and the quality of our distribution,” Moitra said.
“Bridgestone India completed 25 years in the country in October, and achieved the milestone of producing our 100-millionth tyre from our mother plant in Madhya Pradesh earlier this year in November. We have a very strong channel presence across town classes in India and our channel retention rate has been an industry benchmark at over 95 percent,” he highlighted. The company aims to grow its Bridgestone Select outlet count to over 1,000 in the next 2-3 years.
After foraying into India in 1996, Bridgestone set up its first manufacturing facility in Kheda, Madhya Pradesh in 1998. In 2013, it further expanded its operations by setting up its two plants in Chakan, Pune. The company also forayed into the truck-and-bus radial (TBR) segment 10 years ago, and has carved a niche for itself in the truck radial category. “We are a niche player in the TBR category, and have strategised to play a more geographical role rather than catering to the entire nation,” he said.
Globally, Bridgestone is migrating from being a tyre company to a mobility solutions provider, and acquired the Dutch-based navigation major TomTom’s digital fleet solutions arm – TomTom Telematics – in 2019 to offer solutions to fleet operators. In India, the company in 2021, started offering its telematics solutions to monitor tyre life for fleet operators, and maximise their efficiencies. “We are spearheading the solutions business in India now and have around 70 fleets on our platform, which we have backed up with a fixed-asset licensing application. Therefore, it is a very technology-driven business, and we see a strong growth potential in the subscription space” explained Moitra.
“India is a strategic market for Bridgestone globally, and we are constantly evaluating categories that we would like to be present in, and are accordingly making timely investments. Bridgestone is an extremely agile organisation and we will continue to infuse capital according to the business requirements,” concluded Moitra.