Higher input costs, competition may impact profitability of Apollo Tyres

Higher input costs, falling demand from automakers, and competitive pressures are expected to impact the profitability of Apollo Tyres. 

The market leader in the truck and bus replacement segment, with a share of 30 per cent, is facing demand pressure that will reflect both on orders from automakers as well as the replacement market. 

The slowdown has impacted commercial vehicles, led by slowing rural consumption, depressed freight rates, and under-utilisation of trucks. 

The near-term outlook remains muted, with most firms pinning their hopes on pre-buying ahead of the implementation of the BS-VI emission norms from April. 

Over 60 per cent of Apollo Tyres’ revenues