Tyre exports from India recorded a growth of 17% on a year-on-year basis during the first quarter of the current financial year. Exports rose on a low base as the exports had fallen 14% in the comparable period.
Tyre exports in the April-June period came in at Rs 6,219.38 crore, against Rs 5,313.48 crore in the year-ago period, according to the data from the Ministry of Commerce. Export volume increased 12.8% on year to 1.26 crore units.
Focus on R&D and advanced technology, competitive pricing and branding as well as improving demand prospects in key export markets and expected monetary easing boosted the tyre export, said the Automotive Tyre Manufacturers Association Chairman Arnab Banerjee.
Exports accounts for almost one-third of tyre production in value terms. Tyres manufactured in India are exported to over 170 countries. The US is the largest export market, accounting for 17% share. Other major export markets include Brazil, Germany, France and Italy.
Passenger car radial tyres accounted for the largest exported category from India, followed by motorcycle, and farm and agriculture vehicle tyres. Export volume growth was the highest in motorcycle tyres (38%), followed by truck and bus radial tyres (31%).
India’s tyre exports in 2023-24 totaled around Rs 23,0723 crore. The tyre manufacturers’ association has set a target to double the export value to Rs 50,000 crore by the end of this decade.
ATMA represents 95% of the tyre industry in India with six companies – Apollo Tyres, Bridgestone India, CEAT, Goodyear India, JK Tyres and MRF.
The turnover of the Indian tyre industry is projected to double to Rs 2 lakh crore in the next 4-5 years from Rs 90,000 crore in 2022-23, driven by higher demand for vehicles, improving infrastructure, replacement demand, and exports.
The industry contributes around 3% to the country’s manufacturing gross domestic product.
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