Adapting to new challenges, how Indian tyre industry is faring amidst a crippling economic downturn

The Indian tyre industry is one of the seasoned sectors and a vital part of the auto segment. India produces one of the largest varieties of tyres manufactured anywhere in the world. However, the sector only contributes to 3 percent of the manufacturing GDP of the country.

The tyre industry in India has expanded from Rs 30,000 in 2010-11 to Rs 59,500 crores in 2017-18. Some of the top players, such as MRF, Apollo Tyres, Bridgestone, CEAT, Falcon Tyres, etc., have contributed significantly to help the sector grow in the last decade. Currently, the industry provides employment to more than two million people in the country.

The Indian tyres are exported to more than 100 countries in the world. There are quite a few contributors, who have made their presence felt at the global level. One of the main contributors in this regard, Ruia Group has set a new benchmark by opening the markets to better quality and international tyres, providing a great incentive to the market.

However, the industry still has a long way to go. It’s likely to explore a wide range of opportunities not only in domestic but the global market as well. The Indian tyre industry is capable of doubling its exports in a span of 3 to 4 year if the policies are well in place.

With the emergence of new technology, ultra-modern production facilities and availability of raw material, Indian tyre industry is expected to relish a bright spot in the global trade and contribute to sustainable growth and development of the country. The recent capacity expansion of the industry has been boosted by major players in the market. One such player is Apollo Tyres, which laid the foundation for its fifth Indian facility in Andhra Pradesh. It is also planning to expand its T&B capacity at the Chennai plant.

On the other hand, JK Tyres acquired the Cavendish tyre business from the BK Birla group to enter into two-wheeler segment. JK Tyre now plans to expand its T&B tyre capacity by 0.6 mn units at the Cavendish facility by investing Rs 275 crores. Falcon Tyres are also playing a major part in two & three-wheeler segment, while companies like CEAT, Bridgestone, etc., are too acquiring a major chunk of the market share.

Apart from this, one of the fastest-growing conglomerates in India, Ruia Group has also contributed for a meteoric rise of the tyre industry with Pawan Kumar Ruia at the helm. By turning around various non-functional tyre companies through technology acquisition and prolific vision, he has played a major role in changing the face of the industry. Amidst a crippling economic downturn, Ruia Group has built a vast marketing network through dealers and deposits to change the fortunes of sick companies.

Almost 60 percent of the global tyre plants are located in Asia today. It has emerged as one of the most competitive markets in the world, as major technical changes have taken place in tyre design. The Indian tyre industry has also adapted to the new technologies and trends through foreign collaborations and tailoring these to Indian needs. This segment will surely be the center of attention for Indian tyre manufacturers, as it is expected to grow even more in the next few years.