16 Feb 2024 | 6947 Views | By Kiran Murali
India’s tyre industry expects to double its exports by value by the end of the decade with the country becoming the top third tyre manufacturing hub globally. "The industry is targeting to increase its export to Rs 50,000 crore by 2030 from the current Rs 23,000 crore," Automotive Tyre Manufacturers ...
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India’s tyre industry expects to double its exports by value by the end of the decade with the country becoming the top third tyre manufacturing hub globally. "The industry is targeting to increase its export to Rs 50,000 crore by 2030 from the current Rs 23,000 crore," Automotive Tyre Manufacturers Association Chairman, Anshuman Singhania told reporters today.
“The exports from India are seeing markets in Western countries, which has a latent demand today,” Singhania said. He noted that earlier the export portfolio did not fully cater to the demands of global markets. “But now there has been a significant investment in TBR, PCR and off-highway tyres and this will drive the demand going forward. Also, many of our standards are now aligned with the rest of the world which would be a supportive factor in accelerating exports,” he added.
Exports contribute almost one-third of the tyre production in value terms and have almost doubled in the last four years. India currently exports tyres to over 170 countries, with large demand coming from the EU, the US, Brazil, UAE, and the UK. The US is the largest market for Indian tyres accounting for nearly 25% of the total tyre exports from India. The tyre makers’ association is also pushing the government for Free Trade Agreements with Latin American countries and African countries to increase exports.
While exports are set to triple, the industry’s turnover is projected to grow to Rs 2 lakh crore by Rs 2 lakh crores in the next 4-5 years from Rs 90,000 crore in 2022-23 amid higher demand for vehicles, improving infrastructure, and replacement demand. The industry contributes around 3% to the country’s manufacturing gross domestic product.
Recently, Prime Ministry Narendra Modi urged the industry to work with farms and reduce the import of rubber. Singhania said the industry consumes around 13 lakh metric tonnes of natural rubber, while India produces only 8 lakh metric tonnes. Four major tyre makers represented by the tyre association have committed Rs 1,100 crores for rubber plantations on a total of 2 lakh hectares in the North Eastern states to increase domestic production.
Meanwhile, on the Red Sea shipping crisis, Singhania said the tyre industry is yet to see a significant impact from the issue. “The shipping crisis has increased the lead time by 15-20 times and container prices have increased considerably. But there hasn’t been a significant impact on the tyre industry as of now and we expect it to get resolved soon,” he added.