Tyre exports from India is expected to touch $1.85 billion by end of 2018-19, which will be a seven per cent growth compared to 2017-18. It may be noted that last year the growth was nearly 20 per cent compared to 2016-17.
According to Department of Commerce numbers, April to September 2018 tyre exports stood at $920.9 million. In 2017-18 tyre exports reported a 20 per cent growth to touch $1.74 billion as compared to $1.44 billion in 2016-17.
“During the current year also tyre exports have continued momentum of the previous two years. The industry is expected to end the current fiscal with an export turnover of Rs 120 billion as order book position is healthy”, said Anant Goenka, Chairman, Automotive Tyre Manufacturers Association (ATMA).
Indian manufactured tyres are being exported to over 100 countries across the world including the US and European countries.
While private investment growth has remained muted in India in recent years, tyre industry stands out for the substantial investments made to support the automobile and economic growth. An investment of nearly Rs 510 billion ($7 billion) has just been completed or is currently lined up in both Greenfield and Brownfield expansion by the industry. In fact, tyre industry stands today as a shining example of Make in India drive.
What has helped Indian tyre industry increase its export competitiveness is an increased emphasis on Research & Development. Four Indian tyre companies rank amongst the top 20 in the world in terms of R&D spend as a percent of sales as well as in absolute R&D spend. Currently about 2 per cent of the revenue is being invested on R&D by Indian tyre industry which matches fairly with the global average.
“India has some of the finest radial tyre manufacturing facilities. International vehicle majors (OEMs) have been rolling out vehicles on India-made tyres. All these have had a rub-off on tyre exports too. Cost efficiency and customization have also helped in making exports competitive”, added Goenka.