Raghupati Singhania, Chairman and Managing Director of JK Tyre, stated that they anticipate the demand for tyres in the domestic market to stay healthy going forward due to the fact that the car sector is continuing to climb new highs in the context of a good economic climate. During a conversation with PTI, a seasoned industry leader stated that a robust increase in Gross Domestic Product (GDP), as well as the attention of the government on the construction of infrastructure, are likely to fuel growth in the vehicle sector as well as the tyre business.
“We see that the domestic demand will continue to be robust due to the healthy macroeconomic factors as well as the investments in infra and, of course, overall feel the good economic environment that we are running through,” explained the economist. To elaborate on some favourable reasons, Singhania mentioned that the availability of goods has not changed much, which is beneficial to the commercial vehicle market.
In addition, he pointed out that solid growth in GDP, as well as increased levels of disposable income, are contributing to the increased sales of automobiles. “So, we foresee that car demand will go up, and so will the demand for tyres,” according to Singhania. According to him, there has been an increase in the number of individuals who are interested in travelling by road in the last 18 to 20 months as a result of the construction of various highways that are of a high grade.
This is going to make hitherto unexplored applications for automobiles, in particular, possible. And as a result, an increase in the use of tyres,” Singhania explained. Regarding JK Tyres, he stated that the firm is committed to maintaining its position as a market leader in the truck and bus radial tyres industry. “However, we will also have an enhanced focus on Passenger Car Radial (PCR) because the headroom is even better in the segment,” said the executive.
According to Singhania, the top line of the firm has been steadily increasing over the course of the past several quarters, and the company anticipates that this trend will continue moving forward. As a result of the strong showing the firm had in its home market during the September quarter, the consolidated net profit of the company reached a new high of 249 crore Indian rupees (INR).
JK Tyre intends to increase its tyre production capacity by twenty per cent by the year 2025. The company anticipates that demand will continue to be strong. The corporation’s 12 production sites in India and Mexico have enabled it to reach its present production capacity of around 3.4 crore tyres per year.
“The expansion is going to focus primarily on the PCR, but it will also cover some of the other segments. ” According to Singhania, “We are anticipating that it will take approximately two years in order to commission the project completely.” Regarding the growth of distribution channels, he stated that the business was expanding its brand presence by opening more stores that were exclusive to the company’s brand. This was done in order to break into the domestic market more profoundly and fill all white spots.