ICRA, an Indian independent and professional investment information and credit rating agency has recently said that the domestic tyre demand is expected to grow. According to the agency, this growth is expected to be between the range of 7–9 percent over the next 5 years period, during 2019–2023. The rating agency also added that the market would also witness a good amount of investments over the next 3 years.
K. Srikumar, ICRA Vice President and Co-Head, Corporate Ratings stated that with a stable demand outlook and strong credit profile, the domestic tyre manufacturers will continue to invest in capacities of over INR. 20,000 crores in the next 3 years.
The revenue growth for the tyre industry is expected to be around 14% to 15% for the 2018–2019 period with an operating margin and net margin of 14% and 7% respectively. From 2019–2023, the revenue growth is projected at 9–10% with operating and net margins at 14–15% and 6–7% respectively, said Mr. Srikumar.