Projected Indian Tyre Sector Revenue Reaches ₹13 Lakh Crore According to ATMA-PwC Study by 2047
The Indian tyre industry is poised for a significant transformation, aiming to transition from a domestic focus to a global player by 2047. This ambitious goal, seen as a once-in-a-generation opportunity by Arun Mammen of the Automotive Tyre Manufacturers' Association (ATMA), could enable India's automotive ambitions.
Sustainability is at the forefront of this transformation, with the industry focusing on finding alternatives to natural rubber, reducing emissions, and adopting futuristic manufacturing techniques. This shift towards high-tech, sustainable, and export-ready products is a response to the evolving automotive landscape, which includes upcoming cars and bikes in India and the growing adoption of electric vehicles.
India has the potential to significantly increase its global presence in the tyre market by capitalizing on new free trade deals and focusing on targeted usage scenarios. However, challenges such as natural rubber availability, regulatory unpredictability, and non-tariff barriers could potentially slow the growth of the industry.
The future of the tyre industry is also influenced by disruptive mobility shifts, such as the rise of electric vehicles and vertical take-off and landing vehicles. To remain competitive, the industry must be agile and adapt to these changes.
Commercial vehicles will also contribute significantly to tyre demand, tied to freight and consumption. For fleet operators, servitisation, periodic management, advisory, health tracking, and maintenance will become as critical as the truck itself.
The tyre industry is on a digitalization and services path similar to the auto industry. This shift is evident in the transformation of tyres into tech products, with the integration of advanced material engineering, electronics like TPMS, and professional fleet services.
The PwC "CHARGE" framework emphasizes adaptability, innovation, and partnerships in the tyre industry. Major companies shaping the future of the sector in India with high technology and sustainable production include Apollo Tyres, MRF, CEAT, and JK Tyre.
Tyre revenues in India are expected to grow twelve times to reach ₹13 lakh crore by 2047. This growth is driven by replacement demand for tyres, which is expected to increase due to increased movement of people and goods. OEM (Original Equipment Manufacturer) demand for tyres in India is expected to grow at nearly a 10% CAGR.
Passenger vehicles and two-wheelers will continue to be the biggest pull for tyre demand in India. If cost competitiveness and brand equities are improved, Indian tyres may increasingly be found on US and EU highways.
In conclusion, the Indian tyre industry is on an exciting journey towards global competitiveness. Sustainability, technology, and innovation are key drivers of this transformation, and brand-building and tech-led productivity will play crucial roles in determining India's success in the global tyre market.
Read also:
- Solar energy company, Imperium, alongside QORAY Mobility & Energies Solar Business, bolsters Nigeria's environmental future by producing superior solar panels domestically and offering flexible payment options.
- iPhone, iPad, and Mac Apple Sports App Now Offering: Customizable Widgets
- AI Inspection Company, Zeitview, Secures $60 Million Funding for Expansion
- Future of Payments: If the U.S. regulates stablecoins through the GENIUS Act, according to Matt Hougan
