Tyre Manufacturers Expect Festive E-Commerce Discounts To Offer A Boost In Business
Published On 24-Oct-2019 22:06:04
Major revenue generators for the tyre segment are the bus and truck tyre segment. The movement of the vehicles has been restricted by the heavy rains in states such as Jharkhand and Madhya Pradesh, which reduced the growth of sales in the month of August as well
The tyre sector has been saddled with growing inventories and dropping sales. They are now hoping that the festival season will provide some relief with a sales boost. The industry has estimated that the huge amount of discount provided by the e-commerce companies could result in more prominent transportation of goods, which might also enhance the tyre business to an extent.
The senior vice president sales of CEAT Tyres, Anup Mangaserri, said “The light commercial vehicles, trucks and even trailer trucks may be needed to transport the goods across the country which could raise truck tyre sales. We will have to wait until November to know the result. We have seen a pick-up in replacement demand for tyres in a two-wheeler, three-wheeler and four-wheeler categories. Normally this happens during the June-July period. But this year, heavy rains since August has resulted in people changing tyres frequently.’’
The major revenue generators for the tyre segment are the bus and truck tyre segment. In addition to that, for the past few months, they have been going through poor sales. The situation is, even more, worse if compared to that of the previous year. According to the director-general of Automotive Tyre Manufacturers Association, Rajiv Budhraja, a negative growth has been spotted in the tyre segment for the month of July. The movement of the vehicles has been restricted by the heavy rains in states such as Jharkhand and Madhya Pradesh, which in return has reduced the growth of sales in the month of August as well.
“But now the replacement tyre segment has become sluggish. We have to wait till the end of the festive season to make an assessment about how long will it take to recover,’’ added Budhraja. Moreover, the reason for the growth in the inventories is due to the fact that manufacturers have imported a huge quantity of rubber to take advantage of the low prices in the global market.