Tyre Industry: Holding Firm Grip

Indian automobile industry has been in the fast lane since the past few quarters auto ancillary segment has also remained buoyant. With OEM as well as replacement markets witnessing traction, Indian tyre industry is expected to perform well. sneha dewoolkar analyses how Indian tyre industry is placed in a scenario of rising rubber prices.

- Sneha Dewoolkar

It is said that the sign of economy recovery is seen through different factors. One of the factors we can say is the automobile sales. If we look at the sales figure, we come to know about the recovery seen in the automobile sales. As the growth is taking place in automobile sector, we feel that there is one sector which has a relation with the automobile sector. The sector we are speaking about is the tyre industry. That is the reason why we have stated earlier that tyre and automobile are interrelated as a car cannot run without the wheel and thus tyre plays an important role. This is reason why we have selected the tyre industry under the Industry Premier Section in this issue. We believe that tyre industry is expected to show better growth in the near future. Now let us throw some light on the industry.

AN OVERVIEW

The tyre industry plays a very vital role for the automobile sector. Moreover, the growth of tyre industry is highly dependent on the auto sector. If we take into consideration the past year’s performance, the revenues of tyre companies in India registered CAGR growth of 12 percent in the period starting 2010-2015. The reason for such stagnant growth in tyre sector was mainly due to subdued auto demand, rising Chinese imports and fall in the raw material prices. Nevertheless, the scenario is likely to improve going ahead.