Lower raw material cost to help tyremakers amid economic slowdown

Higher share of replacement segment should help cushion demand drop

While most auto component segments have been bearing the brunt of slowdown in the automobile sector, the tyre industry is expected to be less impacted than other auto suppliers. While falling demand in India and globally is exp­ected to dent their despatches to customers (original equipment or OE makers), the rep­la­cement market and the sh­a­rply lower crude oil prices sh­ould help cushion the impact. 

The domestic tyre industry is skewed towards the replacement segment, accounting for 67 per cent in tonnage terms and 56 per cent as far as volumes are concerned. This should help it to overcome the deep cyclicality