七妹导航

The tyre industry recorded a 14 per cent volume growth in FY22 year on year and is expected to end the year with a 4-5 per cent growth in volumes for FY23. The tyre industry has been recording growth across the past 10 quarters, primarily led by a combination of growth in volume and realisations. Revenue growth in FY23 so far is more driven by realisations on account of steep cost pressures.

Going back in time, Indian tyre manufacturers were generally focused on highway tyres for mass consumption. But the late 1980s brought a change in this mindset and with the passage of time, there has been a shift towards OTR tyres. Today, India has emerged as one of the leading manufacturing and consumption hubs of OTR tyres, primarily in the agriculture and mining segments, followed by construction equipment. To meet the growing demand, manufacturers are complementing production capacities with rigorous R&D and innovation, a telling example of which is the gradual shift to radialisation.

The market is likely to grow at a CAGR of 9.04 per cent in volume terms. This growth is backed by increased spending in the construction and mining sectors as well as in agriculture. Major demand-driving vehicle categories are tractors and earthmoving equipment such as loaders and excavators. The mining andconstruction segments contribute to more than half of OTR tyre sales in the country. Agriculture is the biggest segment for OTR tyres owing to increased tractor penetration in rural India...