Boom in automobile sales drives tyre industry's growth into high-speed lane

According to the Automotive Tyre Manufacturers Association, the industry is investing Rs 206 billion in new units and another Rs 157 billion in expansion of existing units

The boom in automobile sales is responsible for a higher proportion of the tyre industry’s growth.

In the past, the latter was mostly driven by replacement market demand, still the lion’s share of total tyre sales. However, the share of sales to automobile makers, also termed Original Equipment Manufacturer (OEM) sales, is moving up for tyre makers.

“With bullishness in the economy and the automobile industry, the tyre industry was also on an upward march (in FY18). Our own estimates indicate the growth has been led by the OE sales, more than by the sales in the replacement market,” leading tyre maker