Trying To Catch Up

Now compare this with the Indian marketplace. According to Anil Srivastava, manager, coordination at new entrant Bridgestone ACC India Ltd, the estimated extent of radialisation is 35 per cent in the original equipment segment of passenger cars and 42 per cent in replacement cars. But the car segment comprises only six per cent of the total tyre market. In the all-important truck and bus segment, which accounts for around 75 per cent of sales, a negligible one per cent of radialisation has taken place. In fact, J K Tyres tried to introduce radial tyres in this segment in 1977-78 but it failed to make an impact. In LCVs, there is six per cent radialisation.

Moreover, even as the cross-ply tyre, which is obsolete overseas, continues to rule on Indian roads, developed tyre markets have gone one step further. They have developed tubeless tyres, which are fast becoming the preferred standard. A majority of the passenger cars in the US and Japan now run on tubeless tyres. Bridgestone USA has even introduced the Run-Flat-Tyre, where a vehicle can travel for upto a distance of 80 kms on a flat tyre.

But tubeless tyres are still unheard of in

India. Says K G Shenoy, project director, ACC Bridgestone India Ltd, While tubeless tyres are currently being used in developed markets, their entry into India, even in the near future, seems impossible. In fact, there have been instances when tubeless tyres were imported for premium cars only to be fitted with tubes to suit Indian conditions.

However, tyre manufacturers in the country are now trying to catch up on the technology front. The first stop: radialisation. From newcomers like Bridgestone to market leaders like MRF, companies are investing in exclusive manufacturing facilities for such tyres.

Thats because automobile majors like Ford, Opel and Daewoo, who have launched their products here, are insisting on radial tyres. Also, older players like Maruti are using radials for products like the Esteem.

So MRF is setting up a Rs 200 crore, 1.5 million capacity plant at Pondicherry to manufacture radial tyres for cars and trucks. South Asia Tyre Ltd, the 50:50 joint venture between Ceat and the Goodyear Tire and Rubber Co, USA, has set up a 7.20 lakh car and jeep radial tyres unit at Aurangabad. And Bridgestone ACC India is investing Rs 345 crore in a two million steel-belted passenger car radial tyre unit at Kheda in Madhya Pradesh. It has already made investments of Rs 45 crore.

But in spite of all this activity, several factors continue to inhibit the growth of radialisation in the country. To understand them, we first need to examine the basic structure of the radial and the cross-ply tyre.

The body of a tyre, called the carcass or casing, is made up of layers of rubber-coated nylon or rayon fabric called plies. Here lies the first difference between the cross-ply and the radial tyre. In the cross-ply, the plies run diagonally at a bias angle. They are laid in a criss-cross fashion, layer upon layer. In the radial tyre, on the other hand, the plies runs radially from bead to bead like the spokes in a wheel. They lie perpendicular to the circumference.

So when the cross-ply tyre flexes in motion, the diagonal plies tend to move scissor-like, in opposing directions. This leads to internal stress, causing heating and rolling resistance. As a result of this, the treads wear out faster.

In a radial tyre, on the other hand, there is a belt between the carcass plies and the tread. This belt, made of steel, fibre glass, nylon or polyester wires, is placed like a girdle around the circumference. The radially-oriented plies strengthen the carcass and act as a hoop, restricting ply extension. And the belt stiffens the tread, eliminating tread shuffle and reducing wear-and-tear.

Then there is the safety factor. In the cross-ply, the side wall of the tyre is directly linked to the tread. As a result, while taking sharp corners or moving on wet surfaces, the tyre has a tendency to partially lift off the ground, reducing road contact area. This could cause accidents due to skidding.

In the radial tyre, the side wall is isolated from the tread, which ensures complete surface contact. And the stiff belt distributes the load evenly over the complete footprint of the tyre. Also, a radial tyre provides effective stoppage on braking, which is reduced by the criss-cross structure of the plies. Further, the easy rolling action of a radial tyre reduces the rolling resistance by 20 per cent, increases mileage by almost 75 per cent and results in fuel savings of around five per cent.

But in spite of all these advantages, the shift from cross-plies to radials has been slow.

One of the main reasons is that radial tyres have low tolerance levels. Says P K Mohamed, executive director, technical, Ceat Ltd, In India, cars, trucks and LCVs have poor suspension systems, which causes jerks and problems in vehicle handling.

Industry sources say that the suspension system in even the Maruti 800 is not favourable for radial tyres, although some customers are now switching to radials. In fact, except for the Contessa, all the other Indian cars from the Fiat to the Omni to the Tata Sumo use cross-plies.

The technological obsolescence of Indian trucks and heavy commercial vehicles (HCV) is another reason for the negligible radialisation in this segment, adds Srivastava. Over 95 per cent of the trucks and HCVs are without power steering so the driver is affected by the weight of the steering wheel. The road grip of the radial tyre requires extra effort while manoeuvring the wheel. This inhibits the changeover to the radial tyre.

Then, vehicle overloading is a common feature on Indian roads. For instance, a 10-tonne truck tonne is often overloaded to the extent of 24 tonnes in parts of northern and eastern India especially. Since radial tyres have low tolerance levels, they are not suitable. Also, for optimum results, they require perfect road conditions. Indian roads are a far cry from that.

Points out Mohamed, Because of the poor roads, a radial tyre could have patchy and irregular tread and shoulder wear. This eats into the life of the tyre. So, the net effect is that a customer pays more, since radial tyres on an average cost around 30 per cent more than cross-plies, but gets a shorter than expected tyre life.

Its even worse for tubeless tyres given their basic structure. In a tubeless tyre, the valve is connected to the rim of the tyre, and the tyre shape hugs the rim. Says Shenoy, Given the pathetic road conditions in India, the potholes and bumps would cause grievous damage to the rim of a tubeless tyre. And this would be an expensive proposition for a customer.

For the company, the exorbitant investment in a radial tyre unit must be justified by a sufficiently high offtake. Since the tyre industry is a high-volume, low-margin and high working capital business, such investments has often seemed prohibitive for companies in the past. For instance, while the per tonne cost of producing cross-plies is Rs 3 crore, it is Rs 6.5 crore per tonne for radials. A 1,000 tonne per day facility entails an investment of nearly Rs 400 crore to Rs 500 crore, according to Mohamed.

But since radial penetration is still very low, especially in the high volume truck and bus segment, the demand is not sufficiently high to sustain exclusive radial plants in this segment. In fact, analysts say that one of the reasons why Vikrant Tyres has been ailing is because of its focus on radialisation in the truck and bus segment where customers still prefer cross-plies.

That may now change with the entry of new players. According to J B Khodaiji, executive director, marketing, Ceat, the entry of players like Volvo and the launch of superior trucks like Cargo by Ashok Leyland will increase the radialisation in the HCV segment. It is expected to go up to 15 per cent in the next three years.

Car makers are also improving their suspension systems to suit radial tyres. Telco is considering using radial tyres for its small car project. Industry sources believe that in the passenger car segment, at least 65 per cent of radialisation will take place in the near future.

And if state efforts to improve road infrastructure materialise, it will boost the radialisation drive. As Srivastava says, We are optimistic. Radial technology is definitely here is to stay.

beast of burden Vehicle overloading is a common feature on Indian roads. So around 99 per cent of the truck segment prefers cross-ply tyres to radial ones.

The cement industry (May 21, 1997)