Anup Mangaserri, Senior VP Sales, CEAT Ltd., one of India’s leading tyre maker has said that frequent shutdowns in the automobile industry are affecting tyre sales. Moreover, he also told that Original Equipment Manufacturers (OEMs) are facing difficult times due to shutdowns in 2018 during the months of November and December, which has impacted almost all tyre companies in the country. As far as the replacement market of tyres is concerned the majority of the players had a tough time from last November till February this year. However, now things have started showing signs of improvement from the month of March. Although, OEM situation seems not to be in good health as they are expecting some more shutdowns in the current month of June too.
Earlier, CEAT recorded a growth of 11.2 percent in FY 2018-2019 compared to the same period in FY 2017-2018. The company also posted a growth of 4.4 percent in total revenue at INR. 1,760.47 crore in Q4 FY 2018-2019 compared to INR. 1,686.09 crore in March quarter 2018. CEAT in Kerala is the market leader in the two-wheeler segment with the tyres available across 1,750 touch points which the company aims to increase and reach 2,000 touch points in the next 2-3 years.
Although the tyre industry is going through a slowdown, but CEAT is still moving ahead with the expansion plans in the country. It is evident with the fact that the company is in the process of setting up a new factory in the city of Chennai at a cost of INR. 2,500 crore. The factory is scheduled to start production by the end of the current year.