Page 5 - Tyre Industry

Double whammy for tyre firms: Rubber cost zooms, auto demand crawls

Natural rubber prices up 23% since January; weak demand in the replacement market, tepid exports add to manufacturers' woes

Rolling with the punches: Slowdown in auto sales drags tyre industry

Slowing auto sales have failed to dampen investments by tyre manufacturers as they remain optimistic about the future growth of the industry

OEM demand turns a strong driver for tyre makers

The share of OEM business in overall revenue of tyre makers has been inching up

Tyre industry hit as Q1 output of natural rubber falls to 6-year low

The country's output of natural rubber (NR) in this financial year's first quarter was a six-year low of 126,000 tonnes, while consumption was 302,000 tonnes. That is 42 per cent of consumption; a year before for the same period, the proportion was 54 per cent. Data from the Rubber Board of India shows production contracted by 12 per cent, while consumption rose 14 per cent. Output was below 45,000 tonnes in each of these three months, despite prices here being more than abroad; consumption crossed 100,000 tonnes in both May and June."This grossly inadequate availability is leading the tyre industry to a precarious position. The dependence on expensive import will need to go up significantly if tyre manufacturing operations are to be sustained," said Rajiv Budhraja, director-general of the Automotive Tyre Manufacturers Association (Atma).Of the inputs into making a tyre, a little over 40 per cent by weight is rubber. Atma complains home supply is not only inadequate but erratic. ...

Domestic production of natural rubber way below existing demand: Tyremakers

Tyre industry consumes around 65-70% of the overall natural rubber produced in India

Cheap Chinese imports to put pressure on Indian tyre industry

Tyre majors have said that the days of higher industry profit margins are most likely to be behind and the expected hardening of raw materials prices coupled with excess capacity in the industry will see intensifying competition in the market place. The price increase which the companies have announced was not absorbed by the market.It is therefore critical for companies to protect its turf in the commercial tyres and the two wheeler segments, which will be under severe pressure in the years ahead. ATMA has also reported about investments in the order of $ 5.5 Billion (about Rs 36,000 crore) in additional capacity creations. This increase in Capacity, coupled with growing Chinese imports will put pressure on the tyre manufacturers.K M MAMMEN, Chairman & Managing Director, MRF said that the Indian Tyre Industry went through a very turbulent year with economic volatility, further compounded by initiatives like demonetization and changeover from BS III to BS IV norms.Competition has

Tyre makers, rubber firms make peace over increasing production, quality

Tyre companies to work with Rubber Board; short- and long-term quality standards to be set