At present the overall turnover of the domestic tyre industry stands at Rs 75,000 crore.
04 Jan 2023 | 5644 Views | By Autocar Pro News Desk
Riding high on fresh capacity addition and improving production the domestic tyre industry is hoping to generate an incremental turnover of $ 3 billion or Rs 25000 crore in the next three years and cross a turnover of Rs 1 lakh crore, as per a new report by Automotive Tyre ...
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Riding high on fresh capacity addition and improving production the domestic tyre industry is hoping to generate an incremental turnover of $ 3 billion or Rs 25000 crore in the next three years and cross a turnover of Rs 1 lakh crore, as per a new report by Automotive Tyre Manufacturers Association (ATMA).
At present the overall turnover of the domestic tyre industry stands at Rs 75,000 crore.
According to Satish Sharma, Chairman, ATMA the new capacities will go on stream over the next couple of years to meet the growing demand in an economy that is poised to remain as the fastest growing for the next few years.
"Demand is expected to grow stronger in view of uptick in economic activities and the big push envisaged for infrastructure growth. While the external environment continues to be a challenging one, Sharma added, there are several tailwinds to tyre sector’s growth domestically. Different segments of the auto sector have already reached or are reaching pre-pandemic levels in size and scale aiding demand for tyres," Sharma added.
As per ATMA report, the domestic tyre industry has already completed an investment of over Rs 35,000 crore in the last three years aided by improved efficiency via debottlenecking and fresh capcity creation. It also noted that the investments that have been undertaken in a challenging time period span across all the key tyre segments with major beneficiary being Truck & Bus Radials (TBR) and Passenger Car Radials (PCR) manufacturing.
"In view of the normal monsoon, the rural economy is also picking up. Festive season has led to a new resurgence in Auto sales. Premiumisation of the Passenger car market with clear preference for SUVs is creating an exponential rise in demand for higher profile tyres for 16 inch wheels and above," Sharma said.
He further said that the policy environment in India is geared to encourage competitiveness of the industry. "Recent move by the Government regarding non-renewal of registration of 15 year old Government vehicles including vehicles owned by the Central and State Governments, Local Government Bodies, State Transport Undertakings and PSUs will make road transport safer, more fuel efficient and technologically advanced. At the same time, phasing out of the old vehicles will create demand for new vehicles benefitting a host of associated sectors including Tyre and kick off a cycle of economic growth," added Sharma.
There is also a massive spending on R&D, ATMA report showed. The government has been focusing on improving the testing infrastructure and has launched a test track which is the largest track in Asia and the fifth largest in the world.
According to ATMA, the Indian tyre industry recorded a 50 percent jump in exports in FY 22. And despite recessionary trends in the key export markets, the exports have increased in double digits in the ongoing year too, it noted. "Indian technology is converging with the world and the addressable market for tyre manufacturers has increased, and therefore, the accent on exports," ATMA said.
Domestic tyre industry invests Rs 35,000 cr in the last 3 yrs
New Delhi: Aided by improved efficiency via debottlenecking and new capcity creation, the domestic tyre industry has completed an investment of over Rs 35,000 crore in the last three years, as per a new report by Automotive Tyre Manufacturers Association (ATMA).
As per the industry body, the investments that have been undertaken in a challenging time period, span across all the key tyre segments with major beneficiary being Truck & Bus Radials (TBR) and Passenger Car Radials (PCR) manufacturing.
Satish Sharma, Chairman, ATMA noted that the new capacity will help the industry notch a turnover of Rs 1 lakh crore in the next three years from Rs 75000 crore currently.
"The new capacities will go on stream over the next couple of years to meet the growing demand in an economy that is poised to remain as the fastest growing for the next few years. Demand is expected to grow stronger in view of uptick in economic activities and the big push envisaged for infrastructure growth," ATMA Chairman said.
While the external environment continues to be a challenging one, Sharma added, there are several tailwinds to tyre sector’s growth domestically. Different segments of the auto sector have already reached or are reaching pre-pandemic levels in size and scale aiding demand for tyres.
"In view of the normal monsoon, the rural economy is also picking up. Festive season has led to a new resurgence in Auto sales. Premiumisation of the Passenger car market with clear preference for SUVs is creating an exponential rise in demand for higher profile tyres for 16 inch wheels and above," Sharma said.
He further said that the policy environment in India is geared to encourage competitiveness of the industry. "Recent move by the Government regarding non-renewal of registration of 15 year old Government vehicles including vehicles owned by the Central and State Governments, Local Government Bodies, State Transport Undertakings and PSUs will make road transport safer, more fuel efficient and technologically advanced. At the same time, phasing out of the old vehicles will create demand for new vehicles benefitting a host of associated sectors including Tyre and kick off a cycle of economic growth," added Sharma.
There is also a massive spending on R&D, ATMA report showed. The government has been focusing on improving the testing infrastructure and has launched a test track which is the largest track in Asia and the fifth largest in the world.
According to ATMA, the Indian tyre industry recorded a 50 percent jump in exports in FY 22. And despite recessionary trends in the key export markets, the exports have increased in double digits in the ongoing year too, it noted. "Indian technology is converging with the world and the addressable market for tyre manufacturers has increased, and therefore, the accent on exports," ATMA said.