The market would also continue to witness investments over the period of next three years, it added.
With a stable demand outlook and strong credit profile, the domestic tyre makers will continue to invest in capacities, he added.
"Based on announcements, the industry is likely to witness a capacity addition of over Rs 20,000 crore in the next three years," Srikumar said.
The revenue growth for tyre industry is pegged at 14-15 per cent for 2018-19, with operating margin and net margin of 14 per cent and 7 per cent, respectively, almost in line with 2017-18, he added.
"For 2019-20 to 2021-22, revenue growth is projected at 9-10 per cent with operating and net margins at 14-15 per cent and 6-7 per cent, respectively," Srikumar said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)