New York, NY, February 15, 2012 --(PR.com
)-- Indian tyre market is clearly one of the fastest growing markets globally. Strong developments in almost all major automobile segments have infused tyre demand in the country. Additionally, tyre manufacturers are ramping up their production capacities in line with the growing automobile sales. These capacity expansion plans will ultimately result in high tyre production, which is expected to grow at a CAGR of over 13% during FY’ 2011-17.
According to research report “Indian Tyre Market Forecast and Opportunities 2017” by TechSci Research, the replacement tyre market turnover in India will surpass Rs. 30,500 Crore by FY’14. The replacement segment, which constitutes more than 50% of the industry and a key focus area for the manufacturers due to higher margins, would continue to grow faster owing to the high growth in vehicle sales seen over the last few years. During FY’10 the overall volume sales in replacement segment were close to 50 Million units and were dominated by sales of motor cycle tyres followed by Passenger car tyres.
The Indian tyre manufacturers have developed a vast network of dealers and distributors to increase their penetration in the market. The expanding distributor and dealer network has helped the manufacturers to tap the growing replacement market and has enabled them to cater to consumer in the corners of the country. This network accounts for majority of the turnover of the tyre manufacturers in recent years.
According to Karan Chechi, Research Director at TechSci Research, there exists no major threat for industry growth momentum in coming years other than rising imports from other countries specially China. The exponentially increasing demand from automobile manufacturers and replacement market will continue to drive the Indian tyre industry landscape in coming years.