India Tire Market 2024-2030

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    INDIA TIRE MARKET

     

    KEY FINDINGS

    1. The India tire market size is estimated at ~$9-$9.5 Billion annually, exports make up for less than 20% of overall industry revenue.
    2. According to the Automotive Tyre Manufacturers Association, Indian tire Industry generated an estimated revenue of Rs 60,000 crore($8.5Bn) in 2019-20 with exports estimated at Rs 12,840 crore ($1.8Bn).
    3. The manufacturers and importers of tyres for cars, mini bus and heavy vehicles will have to comply with the mandatory norms of rolling resistance for fuel efficiency, wet grip which defines the braking performance on wet stretches and rolling sound emission. The Road Transport Ministry has proposed this regime for new model of tyres from October this year and for the existing models, the norms will be applicable from October 2022.
    4. Automakers struggling with pandemic-induced plant shutdowns and a global chip shortage are now confronting shortage of rubber supplies.
    5. India’s natural rubber (NR) production in 2020 has been scaled down by 42,000 tonne to 668,000 tonnes due to Covid-19 according to the Association of Natural Rubber Producing Countries (ANRPC).
    6. Automotive Tyre Manufacturers’ Association (ATMA) has agreed to invest Rs. 1,100 crores for developing a plantation in 2,00,000 hectares within a span of five years in North East India.
    7. The commerce ministry has recommended an extension of anti-dumping duty for five years on carbon black used in the rubber and tyre industry from China and Russia, with a view to guard domestic players from cheap imports from these two countries.
    8. In the commercial vehicle segment, the replacement tire market is twice as big as the OE market whereas in passenger cars and two-wheelers it is almost equal to the OE market.
    9. The growth of the market is being driven by the increasing demand for high-quality tires in the automotive and industrial sectors.
    10. The passenger vehicle tire segment is the largest segment of the Indian tire market, accounting for over 50% of the market share in 2022.
    11. The radial tire segment is the fastest growing segment of the Indian tire market, due to its superior performance and fuel efficiency.
    12. The Indian tire market is highly competitive, with a number of domestic and international players vying for market share.
    13. The Indian automotive industry is one of the fastest growing in the world, and this is driving the demand for tires. The increasing number of vehicles on Indian roads is also leading to a higher demand for replacement tires.
    14. The cost of raw materials used in the manufacturing of tires, such as rubber and crude oil, has been increasing in recent years. This is putting pressure on the profitability of tire manufacturers.
    15. The Indian tire market is facing increasing competition from imported tires. Imported tires are often cheaper than domestically produced tires, which is making them more attractive to consumers.
    16. Tire manufacturers are investing in new technologies to reduce the cost of manufacturing and to meet environmental regulations. They are also working to improve their supply chains and to reduce their reliance on imported raw materials.
    17. Consumers are increasingly demanding premium tires that offer better performance, fuel efficiency, and durability. This is driving the growth of the premium tire segment in the India tire market.
    18. The popularity of electric vehicles is growing rapidly in India, and this is driving the demand for tires that are specifically designed for electric vehicles. Electric vehicle tires need to have low rolling resistance to improve the range of electric vehicles.
    19. The demand for off-road tires is increasing in India, due to the growing popularity of SUVs and off-road vehicles. Off-road tires are designed to provide better traction and performance on rough terrain.
    20. Tire manufacturers are increasingly focusing on sustainability, and are developing new tires that are more fuel-efficient and have a lower environmental impact. For example, tire manufacturers are using recycled materials in the manufacturing of tires, and are also developing new tire designs that reduce rolling resistance.
    21. The electric vehicle tire segment is another growing segment of the India tire market. Investors can invest in tire manufacturers that are developing tires that are specifically designed for electric vehicles.
    22. The demand for off-road tires is increasing in India, due to the growing popularity of SUVs and off-road vehicles. Investors can invest in tire manufacturers that are developing off-road tires.

     

    INDIA TIRE MARKET OVERVIEW

    The surging demand for automobiles within India has set the stage for a robust upswing in the country’s automotive sector. Consequently, there has been a corresponding surge in the need for tires.

     

    Radial tires are gaining remarkable traction in India, primarily owing to their superior performance and fuel efficiency. This trend has significantly caught on with Indian consumers.

     

    The burgeoning middle-class population in India is augmenting disposable incomes. This growing affluence is translating into a heightened inclination towards purchasing high-quality tires for their vehicles.

     

    The Indian government is actively bolstering the domestic tire industry through various strategic measures. For instance, they have imposed tariffs on imported tires, and are also providing financial incentives to indigenous tire manufacturers, reinforcing their commitment to this sector’s growth.

     

    In the Indian context, it’s noteworthy that the replacement tire market surpasses the OEM (Original Equipment Manufacturer) tire market. This phenomenon is largely attributed to the fact that the average age of vehicles traversing Indian roads leans toward the higher side.

     

    Within the Indian tire market landscape, the two-wheeler tire segment reigns supreme, holding the title of the largest segment. This primacy can be attributed to the pervasive popularity of two-wheelers as the preferred mode of transportation in India.

     

    INTRODUCTION TO INDIA TIRE MARKET

     

    India is now the fifth biggest passenger car market, world’s biggest motorcycle market and third biggest commercial vehicle market.

     

    There are more than 250 Million scooters/motorcycles on Indian roads, 40 Million cars and 10 Million commercial vehicles on Indian roads. Due to very high vehicle PARC, the OE  demand is 1/3rd of replacement in the India tire market.

     

    Most of the tire manufacturers in the country have launched new products to cater to growing segments: In the two-wheeler segment, premium motorcycles are a growing trend whereas in the passenger car segment, SUVs have been growing in number.

     

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    INDIA TIRE MARKET NEW PRODUCT LAUNCH

     

    June 2021 – CEAT Tyres Ltd launched a new premium tyre range called ‘SecuraDrive SUV’ for the compact SUV segment.

     

    June 2021 –  Continental Commercial Specialty Tires has relaunched a tailored portfolio of robust solid tyres under the brands of Continental, General Tire and Barum for different industrial applications and customer requirements.

     

    Feb 2021 – Apollo Tyres has unveiled a new eco-oriented tyre developed by its R&D facilities in Europe and India and offering a “best in class rolling resistance coefficient.” The Apollo Amazer XP complies with BS VI, India’s equivalent of Euro 6 standards, and is electric vehicle ready.

     

    Jan 2021 –  Tyre maker Bridgestone India launched a new tyre, V-Steel Mix M721, for the commercial vehicle segment. The latest offering is specifically for the general cargo, long haul and highway application.

     

    Jan 2021 – Bridgestone India launched its new generation drive position tyre for the commercial vehicle segment, meant specifically for general cargo, long haul, highway applications. The new tyre – the V-STEEL Mix M721 – addresses issues of tyre mileage, fuel mileage and cut-chip resistance, thereby increasing tyre life and offering better retreadability.

     

    Nov 2020 – Apollo Tyres has introduced a new tyre for commercial vehicles, the XT-100HD, an advanced cross-ply lug tyre that offers the best of both load carrying capacity and mileage while ensuring the most durable casing in the industry.

     

    Sept 2020 – Continental has introduced a new 10.00R20 Hybrid CHA2 (Conti Highway All wheel) tyre for commercial vehicles (CV). The newly launched all-wheel tyre offers high mileage, re-treadability, and low cut-chip damage.

     

    A new line of tyres has been launched by India’s largest tyre manufacturer, JK Tyre and Industries Limited, with the country’s booming luxury car market in mind.

     

    Levitas Ultra is offered in a variety of sizes that are compatible with models from all of India’s top luxury automakers, including Mercedes-Benz, BMW, Audi, Jaguar Land Rover, and Volvo. Levitas Ultra, which offers exceptional performance in dry and wet handling, braking, in-cabin noise, and comfortable ride, was introduced by JK Tyre in response to the recent growth of the luxury category.

     

    These tyres have undergone thorough testing in both Europe and India, and according to the manufacturer, the Levitas Ultra range is on par with and even superior to tyres from other international manufacturers in some areas.

     

    JK Tyre is proud of its innovative contribution in India’s production of tyres of the highest calibre. With the introduction of the Levitas Ultra and a focus on innovation, they are growing their presence in the premium tyre market.

     

    These tyres are specifically created to provide those who drive in the luxury car class with a product that is engineered to give unrivalled performance across all important characteristics of this demanding category, be it ride and handling, grip levels, noise reduction, or braking. 

     

     

    The development of these UHP tyres is the result of their relentless pursuit of excellence at JK Tyre, where they have been concentrating on creating cutting-edge technology.

     

    Levitas Ultra, in their opinion, will come to be regarded by owners of high-end vehicles as the benchmark for performance.From 225/55 R16 to 245/45 R18, the JK Tyre Levitas Ultra line is offered in several sizes.

     

    In the future, the business wants to add tyres with a diameter of 19 to 22 inches to its lineup. In addition to having W and Y speed ratings that allow them to handle speeds of up to 270 kmph and 300 kmph, respectively, the Levitas Ultra tyres have a 5-star efficiency certification from BEE.

     

    In all of India’s main cities, the JK Tyre Levitas Ultra tyre line will be offered.In India, Michelin Pilot Sport 4 tyres for luxury and sports cars were introduced.

     

    One of the newest in the series of high-performance, safe, and versatile MICHELIN tyres is the new MICHELIN Pilot Sport 4, which was created in collaboration with some of the most demanding automakers in the world.

     

    The product line is currently offered through approved MICHELIN distribution channels. “MICHELIN Pilot Sport 4 is made to provide drivers of luxury and sports cars with driving pleasure without sacrificing performance, safety, or longevity.

     

    The MICHELIN Group has a long history of innovating for motor racing, most recently for Formula E.

     

    These technological advancements in the tyre’s ultra-responsive tread are the result of their  extensive knowledge of the dynamic interactions between the architecture, tread pattern, and materials that ensure the best possible management of friction.

     

    Apollo Tyres is a major Indian tire manufacturer with a global presence. The company is planning to invest Rs. 2,000 crore in its existing facility in Ranjangaon, Maharashtra, to expand its capacity for two-wheeler and four-wheeler tires. The expansion is expected to be completed by 2024.

     

    JK Tyre is another major Indian tire manufacturer with a global presence. The company is planning to invest Rs. 1,000 crore in its existing facility in Chennai, Tamil Nadu, to expand its capacity for truck and bus radial tires. The expansion is expected to be completed by 2023.

     

    Goodyear India is a subsidiary of the American tire manufacturer Goodyear Tire & Rubber Company. The company is planning to invest Rs. 500 crore in its existing facility in Aurangabad, Maharashtra, to expand its capacity for passenger car tires. The expansion is expected to be completed by 2024.

     

     Michelin India is a subsidiary of the French tire manufacturer Michelin. The company is planning to invest Rs. 300 crore in its existing facility in Puducherry, to expand its capacity for two-wheeler tires. The expansion is expected to be completed by 2023.

     

    Continental India is a subsidiary of the German tire manufacturer Continental AG. The company is planning to invest Rs. 200 crore in its existing facility in Pune, Maharashtra, to expand its capacity for passenger car tires. The expansion is expected to be completed by 2024.

     

    INDIA TIRE MARKET TRENDS

    The Indian government is supportive of the tire industry, and has implemented a number of policies to promote the sector’s growth.

     

    MRF is the largest tire manufacturer in India. It offers a wide range of tires for different vehicle segments. MRF tires are known for their durability and performance.

     

    Apollo Tyres, India’s largest tire maker, plans to invest Rs 700 crore in FY24, with a focus on the most profitable segment of agriculture radial tires.

     

    JK Tyre & Industries plans to increase its car tire capacity by 3 million units to 21 million units per annum by March 2024.

     

    CEAT, India’s fourth-largest tire maker, plans to invest Rs 750 crore in FY24, with a focus on expanding its radial tire capacity.

     

    Michelin is a French tire manufacturer with a presence in India. It offers a wide range of tires for different vehicle segments. Michelin tires are known for their premium quality and performance.

     

    Michelin has appointed Shantanu Deshpande as its new Managing Director for India. He will be responsible for overseeing the company’s operations in India, including manufacturing, sales, and marketing.

     

    Yokohama Rubber Company plans to invest Rs 671 crore to bolster its passenger tire capacity in India. The company will expand its plant in Dahej, Gujarat, to increase its capacity from 3.6 million units per annum to 5.4 million units per annum.

     

    Radial tires are becoming increasingly popular in India, due to their superior performance and fuel efficiency. Radial tires are also more durable than bias tires, which makes them a good choice for Indian roads.

     

    The Indian middle class is growing rapidly, and this is leading to an increase in disposable income. Consumers with higher disposable income are more likely to purchase high-quality tires for their vehicles.

     

    The focus on sustainability. Tire manufacturers are increasingly focusing on sustainability, and are developing new tires that are more fuel-efficient and have a lower environmental impact.

     

    The government has implemented a tire labeling program that requires tire manufacturers to label their tires with information on fuel efficiency, wet grip, and rolling noise. This helps consumers to make informed choices when purchasing tires.

     

    The government provides financial assistance to tire manufacturers to help them to develop new technologies and to expand their production capacity.

     

    The government offers tax breaks to tire manufacturers who invest in research and development.

     

    INDIA TIRE MARKET DYNAMICS

     

    SUV TIRE MARKET IN INDIA

    SUVs currently account for more than 30% share of Indian car sales, 2X more than 10% share in 2014. Many tire manufacturers have introduced multiple new products in this segment.

     

    The Hyundai Alcazar was launched recently on Apollo Apterra Cross tyres. Within a few months of its launch, Apollo Apterra Cross was chosen as the standard fitment tyre for the Hyundai Alcazar in 18-inch tyre size. This is also the first OE fitment approval received for Apterra Cross tyres, which was launched in this year.

     

    JK Tyre has partnered with Hyundai Motor India for supplying tyres for its highest selling SUV Creta, equipped with the best-in-class technology, unmatchable performance, comfort, and handling – UX Royale 215/60 R17 radial tyres, to the Hyundai Creta’s top-end variant.

     

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    TRUCK TIRE MARKET IN INDIA

     

    The change in axle norms that came into effect in August 2018 had a disruptive effect on the commercial vehicle market in India and truck tire market segment. Most tire companies had to undertake new tire development as a new tire size was required to meet the increased axle loads.

     

    Apollo Abhimanyu is a quantum leap in cross-ply technology, a host of innovations on product design and compound technology. Which delivers 15% better Initial Tread Mileage (ITM) to ensure the maximum profitability for the customers, while the heat ageing resistant casing with HEART platform ensures best in class durability, retreadability and casing value. These tyres are best suited for carrying rated to moderate loads and fitment on steer axles in the Regional Cargo, Tippers, PMST applications and on all positions in passenger buses.

     

    Apollo holds a leading market position in both drive and steer axle tyres, with many products leading in different segments.

     

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    INDIA TIRE MARKET SIZE

     

    Indian tire market is estimated at $XX Billion in 2020, growing at XX% CAGR till 2026.

     

    Other market leaders include Apollo, JK and CEAT  with 29% and 19% and 16% market share respectively. Apollo has emerged the strongest contender for market leadership, and has grown its revenue by almost 40% in the past four years.

     

    MRF has been the leading Indian tire manufacturer for more than three decades and is among the top 20 global tire manufacturers.

     

    J K Tyre, India’s biggest commercial vehicle tyre manufacturer is depending on the growing replacement market and exports to counter the  slowdown in the Indian auto industry. It derives more than 70% of its revenues from the replacement market.

     

    The compact SUV segment has seen exceptional growth of over 50% in the last five years and is expected to grow at a CAGR of 20% in the next 3-4 years.

     

    INDIA TIRE MARKET SEGMENTATION

     

     

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    INDIA TIRE MARKET COMPETITIVE LANDSCAPE

     

    Ceat Tyre’ SecuraDrive SUV tyres offers a new range of tyres offering numerous benefits like precise steering control and excellent cornering stability due to an innovative 3D Groove wall technology.

     

    The fluidic sipe design on the pattern helps aquaplaning and provides superior braking. The unique CACTUS algorithm used for tread pitch design lowers the in-cabin noise and promises a comfortable drive.

     

    One additional feature which stands out is the stylish sidewall and tread pattern which complements the stylish looks of Compact SUVs.

     

    Inspired by the VISION concept tyre introduced in 2017, an airless, connected, rechargeable and entirely sustainable solution, the Michelin Group has decided to manufacture 100% sustainable tyres by 2050.

     

    Nearly 30% of the components used in the manufacture of the Michelin Group tyres are made from natural, recycled or otherwise sustainable raw materials.

     

    The Goodyear Tire & Rubber Company announced its first tire intelligence solution for cargo van fleets, Goodyear SightLine.

     

    Goodyear SightLine will help enable seamless, safe and reliable mobility for all vehicles starting with cargo vans serving the field service, construction and last-mile delivery industries.

     

    Apollo Tyres is selling car and two-wheeler tyres direct to customers in its domestic market. The company launched its e-commerce portal in India in December, 2020.

     

    The site allows consumers to purchase tyres online and book an appointment with Apollo Tyres’ dealer nearest to their location to get the tyres fitted and serviced.

     

    Apollo Tyres introduced a breakthrough product in cross-ply technology. The launch of Apollo Abhimanyu, a cross-ply rib tyre for steer axles in CVs, will help the company capitalise on the upsurge in the cross-ply industry in recent months in India, and radialisation on steer axles still being at lower levels compared to drive axles.

     

    JK Tyre and Industries Ltd. has achieved certification for its initiative of ‘zero waste to landfill’ by the British Standards Institution. Being at the forefront of sustainable growth, this initiative is an extension to achieve and demonstrate the company’s environmentally sustainable goals and ‘go green’ initiatives in the tyre sector.

     

    Continental Tires has been awarded the ‘preferred partner’ status of the Global Mercedes-Benz After-Sales Tires Program for another term in the Asia-Pacific markets starting September 2020.

     

    The partnership extends within the APAC region in India, Japan, Korea, Australia, New Zealand, and Republic of China for a two-year period and in Malaysia for a year.

     

    INDIA TIRE MARKET NEW PRODUCT LAUNCH

     

    Yokohama Off-Highway Tyres Introduces New Agriculture Tyre in India AGRI STAR II R-I is a radial tyre with a unique ‘Stratified Layer Technology’ (SLT) technology.

     

    According to Yokohama, YACHT has launched the new tyre under its Alliance brand AGRI STAR II R-I, which has appealing appearance and boasts long tyre life, great traction, and good roadability.

     

    It also ensures less soil compaction, improved braking performance, and higher self-cleaning capabilities. Yokohama Off-Highway Tyres (YACHT) has just announced the debut of AGRI STAR II R – I, a highly sophisticated agricultural tyre, in India.  

     

    The AGRI STAR II R-I is a radial tyre featuring a unique ‘Stratified Layer Technology’ (SLT) that is developed to satisfy the expanding needs of today’s tractor operators.

     

    The new tyre was introduced by YACHT under its Alliance brand, which has a track record of providing flagship goods in the Flotation tyre and IF& VF tyre markets.

     

    YACHT has always focused on maximizing farmer production by providing distinct products at an accessible price, according to a spokesperson during the special event in Ludhiana.

     

    What distinguishes AGRI STAR II R-I is that it was developed to meet the needs of the end-users – farmers. Farmers were concerned about the life of an agricultural tyre as well as its mid-life efficiency, which AGRI STAR II R-I with Stratified Layer Technology addresses.“ 

     

    SLT is a one-of-a-kind combination of two layers: the top layer with a single angle profile and the bottom layer with a multi-angle profile. The combination of these levels in AGRI STAR II R-I ensures greater lug competency.

     

    After 40% wear, the multi-angle profile layer of the lug comes into contact with the ground, resulting in increased contact area at the center region of the tyre, which results in increased grip and better roadability.

     

    It’s great to note that more and more Indian farmers are upgrading to new methods and technologically improved items for crop preparation and harvesting. They are optimistic that the AGRI STAR II R-I will meet their expectations for a Radial Agri Tyre.

     

    “With its enticing looks, AGRI STAR II R-I provides long tyre life, exceptional traction, and superb roadability.  It also ensures less soil compaction, improved braking performance, and improved self-cleaning.

     

    The strong tyre construction ensures dimensional stability, and the increased rubber volume increases tyre stiffness, resulting in higher wear resistance.Agriculture is at the heart of India’s economy, and Yokohama Off-Highway Tyres has long been a pioneer in this field with its diverse farm tyre solutions.

     

    COMPANY PROFILES

     

     

    THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS

    1. What are the key factors driving the growth of the market?
    2.     What are the key challenges facing the market?
    3.     What are the major trends in the market?
    4.     What are the different types of Tires ?
    5.     What are the major players in the market?
    6.     What are the government policies and regulations supporting the market?
    7.     What are the investment opportunities in the market?
    8.     What is the future outlook for the India Tire Market?
    9. What are the new applications for India Tire?
    10. What are the factors that influence consumer purchase decisions in the India tire market?
    11. What are the key trends that are expected to shape the future of the India  tire market?
    12. What are the key challenges that need to be addressed in order to reduce the cost of the India Tire?
    13. What is the market size of India Tire Market, and how the market is expected to grow from 2023 to 2030?
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2024-2030
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030
    19 Market Segmentation, Dynamics and Forecast by Application, 2024-2030
    20 Market Segmentation, Dynamics and Forecast by End use, 2024-2030
    21 Product installation rate by OEM, 2023
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2023
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix
     
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