India`s tyre industry expected to grow 12 times to Rs 1.30 lakh crore by 2047
Due to a resilient original equipment manufacturer (OEM) base, acceleration in vehicle exports, and replacement demand, India's tyre industry revenue is expected to grow 12 times to Rs 1.30 lakh crore by 2047, a report said on Tuesday.
The industry's production volume would expand approximately 4 times during the period.
"The sharp rise in revenue growth is attributed to a change in the tyre industry’s revenue mix, premiumization, increase in raw material prices, growing share of exports, electrification and servitisation," a joint report by the Automotive Tyre Manufacturers Association (ATMA) and PwC India said.
India’s journey towards Viksit Bharat 2047 presents a huge opportunity for the tyre industry, not only to meet the aspirations of its domestic customer base but also to exponentially scale up tyre exports, especially in the commercial vehicle and passenger vehicle segments across key markets like the US and EU, said
"Emerging consumer trends and mobility shifts, a dynamic global business environment, and sustainability imperatives present a unique opportunity for the Kavan Mukhtyar, Partner and Leader – Automotive, PwC India.Indian tyre industry to transform itself and drive sustainable growth through 2047," he added.
According to the report, robust passenger vehicle (PV) and two-wheeler (2W) sales led by improving per capita income, rising commercial vehicle CV sales led by strong infrastructure spending and consumption demand are expected to drive OEM tyre demand.
Increased people mobility and freight availability are expected to support replacement tyre demand.
Additionally, adopting export-centric growth strategies supported by market and use case-specific innovations, improved market access through newer free trade agreements, improved cost competitiveness and brand positioning, especially in PV and CV tyre segments, will be among the key factors aiding the acceleration of exports.
Ensuring sustained and cost-competitive availability of natural rubber, a dynamic regulatory environment, and non-tariff barriers will be among the key challenges for the growth of exports.
"The Indian Tyre Industry stands at the cusp of a transformational journey, driven by rapid economic growth, evolving mobility trends, and an expanding global footprint," said Arun Mammen, Chairman, Automotive Tyre Manufacturers’ Association (ATMA).
"This growth will be fueled by a shift towards premiumisation, sustainability-led innovation, and a strong focus on technology and exports. As we move towards ‘Viksit Bharat 2047,’ the Tyre Industry is poised to play a pivotal role in enabling India’s automotive ambitions to build a resilient and future-ready sector," he added.
Increased recognition of the importance of managing tyre health, end customer demand for TPMS-ready fleets, etc, is likely to drive demand for services like professional periodic tyre management, tyre advisory, and optimal fleet management solutions.
Tyre companies will need to find an economically viable solution to scale and manoeuvre data security and regulatory issues to reach servitisation potential, the report highlighted.
