India Tyre Market to Witness Robust Volume Growth through 2020

 Growing automobile production and sales, coupled with expanding vehicle fleet to drive tyre market in India through 2020

According to TechSci Research report, “India Tyre Market Forecast and Opportunities, 2020”, tyre market in India is forecast to be dominated by the two-wheeler tyre segment, in volume terms, through 2020. Rising vehicle sales, including two wheelers, passenger cars, light commercial vehicles, medium & heavy commercial vehicles, three-wheelers and off-the road (OTR) vehicles, coupled with the country’s overall automotive fleet being in excess of 150 million vehicles, have established the country as one of the largest tyre markets in Asia-Pacific.

Over the next five years, anticipated growth in the construction sector, small medium enterprises (SMEs) and mining sector is expected to boost demand for commercial and OTR vehicles, which would consequently augment commercial tyre sales in India. Major OEMs such as Ashok Leyland, Bajaj Auto, Hero Moto Corporation, General Motors, Mahindra and Mahindra, Maruti Suzuki, etc. are expected to expand their production capacities and set up new vehicle manufacturing facilities in India during the forecast period. Taking all these factors into consideration, tyre market in the country is forecast to witness significant growth during 2015 – 2020.
India tyre market is predominantly a replacement driven market owing to its huge vehicle fleet size. The replacement segment is expected to retain its dominance in the tyre market over the forecast period. The country is home to various major tyre players like MRF, JK, CEAT, Apollo, TVS, and BKT. Major foreign tyre companies operating in India include Continental, Michelin, Pirelli, Goodyear, Bridgestone, Hankook, Yokohama, etc. These domestic tyres companies hold a large share in the Indian tyre market.

“Increasing urbanization and rising disposable income are contributing significantly towards growth in India’s automotive industry. Over the last 2-3 years, the automotive industry in India has witnessed considerable increase in demand for passenger cars and two-wheelers, resulting in high volume sales of tyres. Volume growth in the country’s tyre market is expected to continue through 2020, predominantly due to presence of large two-wheeler fleet in the country coupled with declining replacement period for tyres across all vehicle segments.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

“India Tyre Market Forecast and Opportunities, 2020” has evaluated the future growth potential of India tyre market and provides statistics and information on market structure and trends. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes emerging trends along with essential drivers, challenges and opportunities available in India tyre market.