Jul 5 2013
Research and Markets has announced the addition of the "Tire Market in India 2012-2016" report to their offering.
One of the key factors contributing to this market growth is the steady economic growth in India. The Tire market in India has also been witnessing an increase in the export of tires from India. However, dependence on other countries for raw materials could pose a challenge to the growth of this market.
The key vendors dominating this market space include Apollo Tyres Ltd., CEAT Ltd., JK Tyre and Industries Ltd., and MRF Ltd.
The other vendors mentioned in the report are Bridgestone, Birla Tyres Ltd., Goodyear Corp., Michelin spa, and The Yokohama Rubber Co. Ltd.
Commenting on the report, an analyst from the Automotive team said: The Indian Tire industry trails far behind other developed countries when it comes to radialization in the Truck and Bus segment. However, the Tire market in India is expected to slowly converge toward radial tires in the Commercial Vehicle segment in the coming years. Tire companies are continuously investing in radial capacity which is likely to improve turnover and margin performance due to the change in the sales mix. Currently, the level of radialization in the Passenger Car segment is high at over 94 percent, but the radialization level in the Truck and Bus, and Light Commercial Vehicle segments is comparatively poor at over 5 percent and 16 percent, respectively.
According to the report, the Passenger Car market in India is the largest consumer of tires in India and hence directly influences the Tire market. Thus, the growing passenger car production and demand is leading to the growth of the Tire market in India.
Further, the report states that the increase in raw material prices is one of the major challenges confronting this market. Tire manufacturers have become extremely sensitive to raw material prices and are under the threat of losing business to competitors. Hence, raw material prices will continue to be the major concern for the market in the near future.