tyre industry in India by bopannaks

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									Tyre Industry
  

$100 billion industry globally. Indian industry worth $3 billion (3%).

Projected CAGR of 8.9% over the next 5 years.
11th Plan Projection: 6% to 10% growth in each category



Market Players

Indian Tyre Market

World tyre industry -marketshare(%)

Source - Cris INFAC

Types of Tyres
•  

Flatless Tyres- Drill holes through the tyre and still ride the
vehicle

Tubeless Tyres- Airtight seal between the tyre and rim Radial Tyres- Dual steel belt with stiff treads Cross Ply- The reinforcement runs criss cross on the sidewall



SEGMENTATION
Category Wise
Truck/Bus Passenger Car Jeep LCV Tractor

5% 2% 7%

21%

65%

Porter’s Five Forces

Product Life Cycle

TUBELESS CROSS PLY FLATLESS RADIAL

Demand Cycle

Major Sales Segments

Demand Categories

JOINT DEMAND
OEM dependence  Replacement Market

Sales Segments
Replacement OEM's Exports

14%

24% 62%

Historical & Projected Growth Rate

FUTURE….

FY13-8.21% FY10 – 6.81%

Low growth in FY09 but higher & medium in long run

GROWTH PROSPECTS WITH RESPECT TO MARKET SEGMENTS

OEM:
Has been growing at CAGR 11.5%. Expected to become world’s 3rd largest automobile market by 2030
Expected to grow at CAGR of 12% Main reasons: Economic Growth, Demographical Change, Reduced Excise Duties

Derived demand nature if the industry will lead to growth

REPLACEMENT MARKET

Largest segment

Road Conditions, Load carried, Distance Travelled, Re-Treading Growing OEM, Low Scrappage rate, Govt. Restriction on import of Radial Tyres from China

EXPORT MARKET

Exports to about 100 countries

Over 20% of trucks/bus tyre produced are exported

Expected to grow at CAGR of 15% in next few years

FUTURE OPPORTUNITIES
Robust Economic growth Investment in radial tyres Accelerating growth of middle class population- growth of small value cars Improvement in road infrastructure

Market challenges - India


Radialization versus Cross ply tyres
Global – 65% India – 2%

____________________________________

Why use radial tyres?
Positives
Longer life Better fuel efficiency

Negatives
Higher cost Poor overloading

Challenges contd….


High cost of raw materials



Tubeless tyres in India
Affected by

- Poor road condition
- Account only for 10% of passenger car tyre sales



Overdependence on commercial vehicle segment
India – 81% of tyre market is for commercial segment



Export issues
Low production capacity of radial tyres


								
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