Automobile industry contributed around 8% to the GDP of India in 2019, which generates employment for more than 36 million individuals. The industry has amassed more than USD23 billion foreign investment during 2000-19 due to considerable cost advantage. Moreover, with the rise in the demand for the production of automobiles, the demand for the tire is surging. Despite, a slight slowdown in the automobile industry in 2019 the demand for tires is set to gain momentum in the second half of 2020.
Moreover, India is considered an export destination for the tires manufacturing due to the presence of OEMs to countries such as Nepal, Bangladesh, UAE and Brazil.
According to the MarkNtel Advisors’ research report, of “India Tire Market Analysis, 2020”, the country’s tire market exceeded USD 9 billion in 2019 The total automobile production in 2019 was estimated to be around 23.12 million units as compared to 25.3 million units in 2016. According to MOSPI- Government of India, the total registered vehicles in India exceeded 250 million units in 2019. Thereby, inducing robust and perennial demand for the replacement tire market.
India: Largest 2 Wheeler Vehicle Exporter
The demand for the auto industry is majorly driven by domestic demand. The country has a presence of leading manufacturing companies Honda, Hyundai, Suzuki, BMW, and Tata, etc. The manufacturing units in India manufactures two-wheelers, three-wheelers, light commercial vehicles, and passenger cars. The total manufacturing of automobile industry stood around 25 million vehicles in 2018. In the first three quarters, a decline of around 13% overproduction of Sep 2019 around 17 million. This slowdown negatively impacted the OEM tire demand.
In 2016, India became the largest 2-wheeler market in the world by selling around 17.7 million units. MRF, the biggest manufacturing tire company, the demand for replacement in tires was accounted to be around 38% and OEM demand also accounted to be around 38.00% in 2019. Moreover, the replacement and OEM demand from Apollo tires were accounted to be around 25% and 75% respectively. Most of the demand is emanating from various clusters established under the initiatives by the Government. Initiatives like ‘Make in India’, ‘Automotive Mission Plan 2026’, and NEMMP 2020 are emerging as the major boost to the growing demand for tires from OEMs as revealed by MarkNtel Advisors’ in their research report, “India Tire Market Analysis, 2020”.
The Indian tire industry is undergoing radicalization, almost all the passenger car vehicles and two-wheelers are deployed with radial tires now but the prevalence of bias tires is still high in medium-heavy commercial vehicles such as trucks and buses still use bias tires. But, with the ongoing change the radial tires market would lead and contribute to the largest market share.
In 2019., the tire leading companies have a strong dealer network in India. MRF has a strong dealer network of around 3,000 dealers in India. The company has increased its focus towards manufacturing premium quality tires, and advanced tires.
According to the MarkNtel Advisors, the major leading players are MRF, Apollo, CEAT, JK Tyres, Birla Tyres, Balakrishna Tires, Bridgestone, TVS, Continental, Goodyear among others.
Apollo planned to invest USD1 billion during 2018-22 to topple MRF to become a market leader in the Indian Tire Market. Apollo Tyres on Thursday partnered with Global Automotive Research Centre (GARC) to establish the first of its kind test track in India, in the southern state of Tamil Nadu, for the testing wet grip of tires, which is one of the primary safety tests in 2019.
MRF has defined a target of investing around USD142.2 million per year in R&D in India for the expansion of the company.
“India Tire Market Analysis, 2020”, provides comprehensive qualitative and quantitative insights on the industry potential, key factors such as trends, drivers, hotspots and opportunities and challenges available for India Tire market providers across the globe. Moreover, the report also encompasses the key leading players in the industry, along with competitive benchmarking and competition matrix and company profiling.
1. By Type of Vehicles (Passenger Car, Light Commercial Vehicle, Buses and Trucks, Medium and Heavy Commercial Vehicles, Off the Road (OTR), Two Wheelers, Three Wheeler)
2. By Demand Category (OEM and Replacement)
3. By Type of Tires (Radial and Bias)
4. By Sales Channel (Dealer/Distributor, Online and Others)
5. By Season (all-season, winter, and Summer)
6. By Price Category (Low (Up to USD90), Medium (USD91-USD140), High (Above USD140))
7. By Rim Diameter (Up to 12”, 12.1” to 15”, 15.1.” to 18”, 18.1” to 20”, 20.1” to 22.5”, 22.6” to 26”, 26.1” to 35”, 35.1” to 47”, Above 47”)
8. By Region (North, south, West, and East)
9. By Company (MRF, Apollo, CEAT, JK Tyres, Birla Tyres, Balakrishna Tires, Bridgestone, TVS, Continental, Goodyear)
Key questions answered in the study:
1. What are the current and future trends of the India tire market?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. What are the future plans and customer expectations of end-users across the globe?
4. How the competition has been shaping across the countries followed by their comparative factorial indexing?
5. What are the key growth drivers and challenges for the India tire market industry?
6. What are the customer orientation, purchase behavior, and expectations from India tire suppliers across various regions?