Tyre exports from India witness a strong growth
Published On 2019-01-04 18:35:33 871 views
Tyre exports witnessed a growth of 10% YOY during April to September 2018. Reasons for this growth could be attributed to an increased focus towards producing radial tyres.
2019 has started on a good note for Indian tyre manufacturers on account of increase in export figures. While the automobile exports were a bit sluggish, the tyre exports picked up by as much as 10% YOY between April to September 2018. Automotive Tyres Manufacturers’ Association (ATMA), citing figures released by Ministry of Commerce, said that while tyre export figures for the year ended 2019 stood at INR 11,180 crore, India tyre manufacturers exported tyres worth INR 6304 crore during April 2018 to September 2018.
Satish Sharma, President, Asia Pacific, Africa and Middle East region for Apollo Tyres, said, “ We are witnessing a 31% growth YTD in exports and it will get better by the close of the year. Our growth is around three times that of the industry.”
Industry experts are attributing these growth figures to an increasing demand of radial tyres in the international market and a subsequent rise in production of radial tyres in India. This alignment with the market demand has led to a spike in export figures and the trend is expected to continue.
Another factor could be depreciation of Indian Rupee value, leading to a surge in exports. This growth is also being seen as a reason for increased investments in capacity creation.
An ATMA official commented, “ An investment of INR 51,000 crore has just been completed or is lined up in both greenfield and brownfield expansion.
Anant Goenka, MD of CEAT Ltd and chairman of ATMA, said, “ The industry is expected to end current fiscal with an export turnover of Rs 12,000 crore as order book position is healthy.”
Tyres manufactured in India are exported to countries like the USA, Germany, Bangladesh, Philippines, Brazil, Italy and Nepal.