Tyre Exports From India Increased By 12 Per Cent In April-August 2019-20 – ATMA

Published On 01-Nov-2019 22:38:07By TyreDekho Team

In April to August 2019-20, production of the tyre was 764.39 lakh units if compared to merely over 798 lakh units, which was produced in the year-ago period

Tyre Exports From India Increased By 12 Per Cent In April-August 2019-20 – ATMA

According to reports from Automotive Tyre Manufacturers Association (ATMA), the tyre exports from India has increased by 12 per cent year-over-year in volume in April-August 2019-20. In FY16-17, the tyre exports achieved double-digit growth as it was progressed by 16 per cent. Having said that, in the succeeding year, tyre export increase dropped to 6 per cent, which was followed by a 0.2 per cent decline in FY18-19. For the industry, tyre exports are like a silver lining, which has witnessed great demand contraction because of a decadal slowdown in sales faced by vehicle manufacturers.

In April to August 2019-20, production of the tyre was 764.39 lakh units if compared to merely over 798 lakh units, which was produced in the year-ago period. A sharp decline in tyre production was shown by all the segments present in the automobile industry with three-wheelers down 3 per cent, motorcycles and mopeds down 3 per cent, passenger cars and SUVs down 8 per cent, and medium and heavy commercial vehicles down 5 per cent.

The president of Asia Pacific, Middle East, Africa, Apollo Tyres, Satish Sharma, said “Typically, Indian tyre industry exports 10-12% of their total revenue and the balance is consumed domestically. So although exports are up, it impacts a small base. In car tyres, replacement and OE demand are 50:50. Tractors are more OE skewed while CVs are 70% replacement market. From a value perspective, the OE market is 27% while the replacement is 73%.”

However, the scooter segment witnessed a 3 per cent up in the period. Moreover, 12 per cent up of 4797456 units was recorded in April-August FY19-20 compared to that of exports in the year-ago period (4293429 units). Except for the niche segments like off-road tyres, implements, tractor tyres and industrial tyres, almost every segment has shown growth in export. Moving to the figures, the medium and heavy commercial vehicles tyre exports were up 17 per cent, passenger vehicle up 8 per cent, motorcycles up 30 per cent, three-wheelers up 16 per cent and scooters up 20 per cent.

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