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.
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.
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.
THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS
- Market Size and Forecast of India tire market (Volume and Value)
- Market Trends,risks, drivers and opportunities in India tire market
- Market share of tire manufacturers in India
- Growth strategy and expansion plans of tire manufacturers in India
- Impact of growing online tire sales on India tire market replacement demand
|2||Scope of the report|
|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, 2020-2025|
|18||Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025|
|19||Market Segmentation, Dynamics and Forecast by Application, 2020-2025|
|20||Market Segmentation, Dynamics and Forecast by End use, 2020-2025|
|21||Product installation rate by OEM, 2020|
|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, 2020|
|30||Unmet needs and opportunity for new suppliers|