 "Tyre firms swarm into 2-wheeler market")
Consistent growth in demand for motorcycles and scooters and a huge aftermarket potential has drawn four tyre-making companies into the segment in the past six months.
The world’s biggest tyre company, Bridgestone, and homegrown Balkrishna Tyres are the latest to enter the segment, joining Apollo Tyres and Michelin. All four companies have traditionally focused on tyres for cars and trucks.
Japan’s Bridgestone, which claims to be the leader in car tyres, launched tyres for motorcycles and scooters as a new brand, Neurun. Apollo and Michelin have launched own brands, too.
“In the past, the two-wheeler market had only a couple of companies dominating. That was because it was not as profitable as the other segments,” said Vaibhav Saraf, senior general manager, consumer products, Bridgestone India. The world’s biggest tyre company, Bridgestone, and homegrown Balkrishna Tyres are the latest to enter the segment, joining Apollo Tyres and Michelin. All four companies have traditionally focused on tyres for cars and trucks.
Japan’s Bridgestone, which claims to be the leader in car tyres, launched tyres for motorcycles and scooters as a new brand, Neurun. Apollo and Michelin have launched own brands, too.
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Sales of motorcycles and scooters rose 40 per cent from 11.8 million in 2010-11 to 16.4 mn in 2015-16, according to the Society of Indian Automobile Manufacturers. India, the largest two-wheeler market in the world, has about 150 mn of these on its roads. The replacement two-wheeler tyre market is growing at an average of nine per cent a year while sales of new tyres are rising seven to eight per cent a year.
MRF, TVS Tyres, JK Tyres, Ceat and Continental all make two-wheeler tyres. Other companies had stayed away because the segment did not provide premium margins.
Despite a downturn last year following inadequate rain, demand for two-wheelers has weathered the slowdown better than other vehicle segments.
Over 73 million two-wheeler tyres were produced last year, up from 71.58 million in 2014-15. Exports grew 16 per cent to 1.37 million last year, according to the Automotive Tyre Manufacturers’ Association.
MRF and TVS Tyres are the leaders in the segment with a combined market share of around 50 per cent. TVS Tyres has become a contract manufacturer for Michelin, which imports premium tyres used for expensive motorcycles.