Strategy and Structure of the Indian Tire Manufacturing Industry
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Code : COM0266 |
Region : India |
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The Indian Tire IndustryAfter a period of robust growth in the early 2000s, the industry started facing challenges mainly due to softening demand from the medium and heavy commercial vehicle segment. The year 2010 saw an increased demand from the OEMs along with a slowing down in the rise of natural rubber prices. The financial crisis led to a decrease in the demand for automobiles among consumer segments which eventually obstructed the growth of the automobile sector. As a result, the automobile manufacturers were forced to adjust their production according to the prevailing demand. The problem continued till 2012 and with the hike in the prices of natural rubber, which formed the major raw material cost, things became even more challenging for the sector. Adding to these troubles was the lethargic trend of the replacement market which played a major role in the growth of the sector....
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Opportunities And Challenges The Indian tire industry produced all categories of tires except Snow tires and Aero tires for which there was no demand among the Indian consumer segments. The various categories in the automobile sector pertaining to vehicles provided an opportunity for the tire manufacturers to increase their production and construct a product portfolio that would suit the demand specifications. As of 2010, the ten major players – MRF India Limited, Apollo Tyres Limited, JK Tyre & Industries Limited, CEAT Limited, Balkrishna Industries Limited, Goodyear India Limited, TVS Srichakra Limited, Falcon Tyres Limited, and Kesoram Industries Limited accounted for 85-90% of the industry turnover. MRF was the market leader with a share of around 30% followed by Apollo Tyres with a market share of 22%......
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