Production growth

Indian tyre production expected to grow 7% in 2013

Southern Africa

On the price trends, the IMaCS report says that moderate demand slowdown and decline in prices of rubber contributed to increase in tyre prices at sequentially lower rates to 4.5% in Q4FY2012.
The demand for tyres by major sectors stands at OEMs (47%), replacement demand (47%), and exports (6%). While OEM demand growth moderated from 28% in FY2011 to 14% in FY2012, replacement market demand declined 4% in FY2012 primarily of declines in two major markets—commercial vehicles (CVs) and two wheelers (2Ws).

India’s tyre production increased 5.2% during FY2012 to 125 million. Production growth peaked at 29.9% in Q4FY2010, but has thereafter declined substantially. The recent slowdown has been primarily because of substantial slowdown in CV and 4W tyre demand growth.

Automotive tyre demand has increased at a three year annual average of 18% to 131 million in FY2012. Demand growth has slowed down from 30% in FY2011 to 5% in FY2012 because of lower demand growth from original equipment manufacturers (OEMs)/automotive manufacturers.

The Indian tyre industry has around 43 companies, out of which the top 10 companies account for around 90-92% of total production. Although imports constitute only 8% of total tyre production, the share of imports has been increasing, driven by increased imports of tyres for passenger cars and CVs.

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