BURNABY, British Columbia, April 2, 2014 /PRNewswire/ --
Large automobile fleet, increasing radialization level, and government initiatives are anticipated to surge the demand
India is a fast developing economy and also one of the largest automobile markets across the globe. Easy availability of finance, rising disposable income levels and favorable government initiatives are the major supporting factors for the automobile industry in the country. The country's tyre market is one of the largest in the world and offers enormous growth potential. Indian tyre market comprises of tyres for passenger vehicles, two-wheelers, three-wheelers, commercial vehicles and off-the-road (OTR) vehicles. In volume terms, India's tyre market was dominated by two-wheeler tyres in 2013. However, in value terms, India's tyre market is being dominated by commercial vehicle tyres like light trucks, heavy trucks, buses, etc. Since 2004, two-wheeler sales have been accounting for more than three-fourth of Indian automobile industry, in volume terms and the trend expected to continue in coming years.
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According to a recently published report by TechSci Research, "India Tyre Market Forecast and Opportunities, 2019", the country's tyre market is forecast to grow at a CAGR of about 8%, in volume terms, during 2014-19. However, in 2013, Indian automotive industry exhibited a sluggish growth rate, making domestic OEMs to cut back their vehicle production, and consequently, reducing the total demand for tyres from the OEM segment. "Large existing fleet of vehicles in India and various government measures like National Automotive Testing and R&D Infrastructure Project (NATRiP), Focus Market Scheme (FMS), Automotive Mission Plan 2006-2016, etc., coupled with increasing availability of credit would significantly support the sales of passenger cars and commercial vehicles in the country, which would drive the demand for automotive tyres in the country over the next five years. Also, rising population, disposable income and aspirations of the Indian middle class are the other key factors fueling the growth of Indian automotive industry, consequently augmenting growth in the tyre industry", said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
MRF is the market leader in the Indian tyre market and also one of the major players in most of the tyre segments due to the company's strong OEM collaborations. Apollo is the second largest player, with a major share in passenger vehicle tyre segment as well as trucks and buses. Other major tyre players include JK tyres, Ceat, Goodyear, and Balkrishna.
"India Tyre Market Forecast and Opportunities, 2019" has evaluated the future growth potential of India tyre industry and provides statistics and information on market structure, exports and future growth of India tyre industry. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment decisions. Besides all this, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in the India tyre industry.
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