Tyre Sector Shows Promise; MRF, Ceat, JK Tyre And Apollo Tyres Bet High

The consistent drop in the prices of natural rubber, which is the main constituent in tyre making in the country has encouraged homegrown tyre manufacturers to maintain their faith in the attractive-looking tyre sector. Artificial curbs raised in China and other Southeast Asian countries together with increased production making way into the system, thanks to the decline in crude oil costs, are some of the factors leading to the fall in rubber prices.

The reduction in the input costs particularly rubber and crude oil has resulted in high margins for the tyre industry. Furthermore, good monsoon elevating the current rural demand and anticipated thrust in the urban demand after the implementation of Seventh Pay Commission has also led to the increased profits and optimism among the tyre makers. The implementation of Goods Service Tax (GST) probably by 2017 and shaping up of other important macro-economic concerns in the automobile sector will clearly have a positive impact on the demand in the tyre arena.

Leading domestic tyre manufacturers, Apollo Tyres, JK Tyre, MRF, Ceat are betting high with their heavy investments in the sector in next couple of years. These investments are being put in varied endeavours like the development of latest and innovative products, brand building, wide-ranging R&D (Research and Development) programs and distributorship network expansion. Tyre makers are not leaving any stone unturned to mark their growth in the businesses by way of deeper penetration in the country and overseas, enhancing their product lineup and strengthening their rapport with leading OEMs (Original Equipment Manufacturers).

The tyre companies are showcasing a notable interest in the manufacturing of tubeless tyres and expansion of their existing radial tyre capacities, which indicates promise for the tyre industry. Moreover, tough competition from imported Chinese tyres and fluctuation in some sectors of the automobile industry has caused weakness in some verticals of the tyre sector.

Society for Indian Automobile Manufacturers (SIAM) has projected a growth of 6 to 8 percent in the passenger vehicles, while the M&HCVs and intermediate commercial vehicles are expected to grow at 12-15 percent and at 7-9 percent respectively. Likewise, the prediction in the two-wheeler segment under motorcycle sales states a growth of 0-3 percent and scooters at 17-19 percent.

Author: Ankit verma

My need for speed began at a very early age and I realised this as soon as I got my first bicycle at the age of 8. When all the other kids would break downhill I would pedal harder just to go faster and enjoy the thrill. Adding to my interest for speed, I grew engrossed in the working mechanics of two wheelers thanks to my father as he is a hydraulic mechanic and would take me along with him on his repair sessions. Eventually I became familiar with the tools and basic technical concepts of two wheelers.Super sport and sport tourers are more of my liking and the sparks to these flames were ignited the first time I experienced the maddening power of a Yamaha YZF R1. I was just 14 years old at the time and got to ride as a pillion with an older acquaintance. This one short ride influenced my every decision in terms of the bikes I want to own. As of today I’m 26 years old and a proud owner of a Yamaha Fz15 version 2.0 and a Kawasaki Ninja 650 2014 model having clocked a decent 30k Kms only while touring, waiting to clock 1000s more as riding makes me feel whole again after enduring the dismal routines of life. Read more