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Ratings firm Icra has said it expects a revenue growth of 7-9 per cent for Indian tyre industry in the current fiscal (FY24). It pegs the domestic tyre demand growth at 6-8 per cent for FY24, supported by stable growth in the replacement segment and sustained demand momentum in the OEM (Original Equipment Manufacturer) segment.

The rating agency noted that it expects the demand momentum in the OEM segment to continue in FY24 with an estimated growth of 8-10 per cent. It added replacement demand, which forms around two-thirds of tyre demand, is likely to witness mid-single digit growth in FY24.

Icra Assistant Vice President and Sector Head Nithya Debbadi said segment-wise, commercial vehicles shall benefit from the increasing traction in the infrastructure and construction segments. Strong underlying demand and preference for personal mobility will continue to drive passenger vehicles and aid in a recovery in the two-wheeler segments. However, she stated tyre demand remains vulnerable to potential headwinds like adverse monsoons and its impact on rural demand, supply-related issues, general inflation, and further hardening in financing rates.