Tyre

The domestic tyre industry is expected to witness revenue growth of 7-8 per cent this fiscal year, driven by replacement demand that accounts for half of annual sales, according to a report by Crisil Ratings. The segment is expected to post growth even as offtake by original equipment manufacturers (OEMs) is likely to be subdued, the report stated. It also noted that the rising premiumisation is expected to give a slight leg-up to realisations. However, escalating trade tensions and the risk of dumping by Chinese producers diverting inventories because of US tariffs could pose challenges, the report stated. Operating profitability is likely to remain steady at 13-13.5 per cent, supported by stable input costs and healthy capacity utilisation, it said. This, along with strong accruals, lean balance sheets and calibrated capital spending should help sustain the sector's stable credit outlook, the report stated. "Our analysis of India's top six tyre makers, catering to all vehicle .

Bridgestone India is expecting around 7-8 per cent growth in the replacement demand this calendar year after seeing a disruption owing to multiple factors in 2024, a top company executive has said. The Indian arm of the Japanese tyre company Bridgestone Corporation also said that along with increasing its product offerings, it is also expanding its market footprint by ensuring its presence in tier 3 and 4 towns of the country. The company in November announced a USD 85-million investment plan for enhancing production capacity and capability across its two plants in the country to reinforce its premium-mass strategy, We are focusing on providing premium products and services to Indian consumers as part of our mid-to-long term strategy with focus on sustainability at the core of our business. India is the fastest-growing market in our portfolio and our recently announced investments of USD 85 million is a reflection of our confidence in the Indian market, Hiroshi Yoshizane, Managing .

Inflated natural rubber prices which are way above the trend in the past decade could impact the profitability of tyre manufacturers, according to CRISIL Market Intelligence & Analytics. Tyre makers are headed for a rough patch as the price of natural rubber has surged more than 33 per cent on-year in just the first five months of this fiscal amid strong demand and crunched supply, which could strain profitability, CRISIL said in a statement. The domestic prices of natural rubber closed in August at Rs 238 per kg on average, way above the trend in the past decade, it added. CRISIL Market Intelligence and Analytics, Director-Research Pushan Sharma said between fiscals 2011 and 2023, global rubber production grew 35 per cent while demand expanded 40 per cent resulting in a supply crunch thereby resulting in higher prices. "With further rise in demand and restricted supply, the prices of natural rubber are expected to remain elevated, impacting the margins of tyre manufacturers well .

Tyre exports from India grew 17 per cent year-on-year to reach Rs 6,219 crore in the first quarter of the current fiscal with the US emerging as the biggest market, industry body Automotive Tyre Manufacturers Association (ATMA) said on Thursday. Tyre exports from India recouped in the first quarter of FY25, increasing by 17 per cent YoY. Tyre exports had declined by 14 per cent in the corresponding quarter in the previous year, ATMA said citing data just released by the Ministry of Commerce. Sustained focus on R&D and development of advanced technology products aided by competitive pricing and branding efforts helped Indian tyre manufacturers drive growth in exports despite a challenging environment, ATMA Chairman Arnab Banerjee said in a statement. "Improving demand prospects in key export destinations and expected monetary easing also helped growth," Banerjee added. The rise in exports is a testament to the Indian tyre industry's enhanced integration with global supply chains, ..

The Indian unit of U.S.-based Goodyear Tire's standalone net loss stood at Rs 4.21 crore ($506,606.34) for the three months to March 31 from a profit of Rs 33.61 crore a year earlier

The report cites healthy demand from OEMs in the passenger vehicle (PV) and two-wheeler (2W) segments, along with replacement demand, as the primary drivers of domestic growth

Ceat, whose customers include automakers Maruti Suzuki and Mahindra & Mahindra, is the first Indian tyremaker to report results this quarter

Higher raw material prices had punctured sequential margins of major tyremakers

The extent of the raw material risk is more for tyres as compared to others given the dependence on the crude oil derivatives.

While sales to original equipment manufacturers declined 16.3% year on year in FY20, the replacement market sales declined by a modest 2.6% over the same period

The company supplies tyres to a majority of two- and three-wheeler manufacturers in India, apart from having a significant presence in the domestic aftermarket

The company is investing $400 million on its first manufacturing plant at Sanand in Gujarat, where it is working to hike output

Despite subdued vehicle production levels in the past six months due to a dip in consumer sentiment, the domestic tyre demand is estimated to have grown by 9-11% in FY19

Goodyear India, JK Tyre, Balkrishna Industries, Ceat and Apollo Tyres were up 3% to 7% on BSE

Cost of rubber, the key input, has gone up by about 50% year-on-year and 17% in the last 30 days

Amyris will supply its sugar cane-derived Biofene (branded beta-farnesene) to Kuraray for using it in liquid farnesene rubber and farnesene-based elastomer applications

Ceat, Goodyear, Apollo Tyres, TVS Srichakra and MRF down between 3%-6%, against 0.39% decline in Sensex.

The sharp fall in rubber price can be attributed to sudden jump in its production

Apollo Tyres, Goodyear India, TVS Srichakra, JK Tyre and Balkrishna Industries were up between 2%-4% on the BSE.

Goodyear India, Ceat, TVS Srichakra, JK Tyre, MRF and Apollo Tyres were up between 1% and 3% on the BSE.