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 India tire market.

In commercial vehicle segment, replacement tire market is twice as big as OE market whereas in passenger car and two-wheelers it is almost equal to the OE market.

The India tire market size is estimated at ~$9-$9.5 Billion annually., exports make up for less than 20% of overall industry revenue.

Infographic: India tire market, Passenger car tire market, SUV tire market in India, truck tire market in India

NEW PRODUCT LAUNCH

Dec 2019– CEAT  launched two new range of tubeless tyres- Grip Xl and Zoom X3 . While the Grip XL is designed for Royal Enfield bikes, the Zoom X3 range is for 150+ cc motorcycle

Dec 2019– Michelin launched a new tyre range in India for small and mid-size passenger cars.The new range XM2+is meant to replace  Energy XM2 tyre range in the country

Oct 2019– Apollo launched all-terrain tyres, Apollo Apterra AT2 aimed at SUVs and MPVs like Ford Endeavour, Toyota Fortuner, Mahindra Scorpio, XUV 500 and TATA Hexa

Sep 2019-CEAT launched  X3 series catering to the truck tyre segment in India.The series consists of three radial tyres and two bias tyres.

Aug 2019– Goodyear launched two new tyre brands in India.Goodyear Assurance DuraPlus 2 (available in 13 to 15-inch rim size) and Wrangler AT SilentTrac (available in 15 to 17-inch rim size)

Aug 2019– TVS Srichakra launched a portfolio of 19 premium tyres under the brand  ‘TVS Eurogrip’ that include zero-degree steel-belted radial tyres

May 2019– JK Tyres launched a new variant Blaze Raydr for premium motorcycles in India.The Blaze Rydr BR43 was developed in 140/70-17 Tubeless configuration for premium motorcycles, suited for urban and highway tarmac

 

SUV TIRE MARKET IN INDIA

SUVs now account for more than 25% share of Indian car sales, 1.5X more than 10% share in 2014. Many tire manufacturers have introduced multiple new products in this segment. For Example, MRF introduced “Markus” which is an OE fitment on premium SUVs like Mahindra Alturas and Skoda Kodiaq. The new “Wanderer street” was chosen as OE fitment on popular compact SUVs like Hyundai Venue and Mahindra XUV 300. 

GoodYear launched Wrangler AT SilentTrac  in Sep 2019  in 15 to 17 inch size range aimed at SUVs.

 

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.

 

 

MARKET SEGMENTATION

Infographic: India tire market report, India tire market share, India tire market size

COMPETITIVE LANDSCAPE

The competitive landscape of India tire market is consolidated at the moment. MRF is still the market leader with more than$2 Biilion annual revenue in FY 2019 and  35% market share, down from 48%, 4 years ago. MRF has been the leading Indian tire manufacturer for more than three decades and is among the top 20 global tire manufacturers.

 

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 past four years.

Apollo tires generates less than 5% of it overall sales from OE market.The Capex allocation for Apollo tires is expected to be 2,300 CR INR($350 Million) in FY 20 and and 1,700 CR INR($215 Million) in FY 2021. 

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 75% of its revenues from the replacement market.

 

In FY 20, CEAT, MRF and Apollo have commited capex to the tune of $800M , which is a significant number when the auto industry in the country is battling severe slowdown across all segments.

 

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

COMPANY PROFILES

  1. Apollo tyres
  2. JK Tyres and Industries Limited
  3. MRF Tyres Ltd
  4. CEAT Tyres Ltd
  5. Balakrishna Industries Ltd
  6. TVS Srichakra Ltd
  7. Goodyear India Ltd
  8. Govind Rubber Ltd
  9. PTL Enterprises Ltd
  10. Falken Tire India Pvt. Ltd
  11. Michelin India
  12. Bridgestone India
  13. Yokohama India
  14. Continental India

THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS
  1.   Market Size and Forecast of India tire market (Volume and Value)
  2.   Market Trends,risks, drivers and opportunities in India tire market
  3.   Market share of tire manufacturers in India
  4.   Growth strategy and expansion plans of tire manufacturers in India
  5.   Impact of growing online tire sales on India tire market replacement demand
Sl noTopic
1Market Segmentation
2Scope of the report
3Abbreviations
4Research Methodology
5Executive Summary
6Introduction
7Insights from Industry stakeholders
8Cost breakdown of Product by sub-components and average profit margin
9Disruptive innovation in the Industry
10Technology trends in the Industry
11Consumer trends in the industry
12Recent Production Milestones
13Component Manufacturing in US, EU and China
14COVID-19 impact on overall market
15COVID-19 impact on Production of components
16COVID-19 impact on Point of sale
17Market Segmentation, Dynamics and Forecast by Geography, 2020-2025
18Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025
19Market Segmentation, Dynamics and Forecast by Application, 2020-2025
20Market Segmentation, Dynamics and Forecast by End use, 2020-2025
21Product installation rate by OEM, 2020
22Incline/Decline in Average B-2-B selling price in past 5 years
23Competition from substitute products
24Gross margin and average profitability of suppliers
25New product development in past 12 months
26M&A in past 12 months
27Growth strategy of leading players
28Market share of vendors, 2020
29Company Profiles
30Unmet needs and opportunity for new suppliers
31Conclusion
32Appendix

 

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