India’s Tyre market is expecting a revival of sorts in the fourth quarter of the financial year 2020. According to various industry experts, the latest improvement in the sale of passenger vehicle segment is likely to impact the tyre business in the next year’s last quarter.
In the last few months, the market has seen a bit of up down in the sale of heavy vehicles. The overall year-on-year production isn’t great either, as per the data provided by Rajiv Budhraja, director general of Automotive Tyre Manufacturer’ Association (ATMA).
“We expect the sales to pick up in the last quarter of the fiscal year,’’ said Mr. Budhraja who believes that too many holidays and plant closures have affected sales.
Due to the economic slowdown and lower mining activities and few other factors, the sales dropped in August and September. However, Industry leaders are quite optimistic about days of business growth that will propel tyre sales country-wide, since the replacement demand has got a positive nod in October.
The government is assisting businesses in the country through tax cuts and pumping money into the market. Next year will be crucial for tyre companies to maintain the commerce. Some positive output can be expected from the tyre industry in the coming months, says Pawan Ruia, the chairman of Ruia Group.
A number of industry experts have blamed the transition of Indian automobile industry into Bharat stage emission standards (BSES) norms, also known as BS-6, for the dip in tyres and automobile sales in the country. Considering all the past incidents and data of the vehicle industry, the tyre sector can brace up for improved sales in the coming months.
