Tyre makers cautious on outlook even as capacity utiliisation improves

In the backdrop of an increase in demand from the aftermarket, farm sector, two-wheeler and cars segments, tyre makers have started seeing their capacity utilisation reaching almost 80-90 per cent. However, companies are cautious on the outlook for the whole fiscal, as many variables may change.

Rajiv Budhraja, director general, Automotive Tyre Manufacturers' Association (ATMA) said that month-on-month demand is going up. Factors helping capacity utilisation include encouraging domestic replacement demand in passenger vehicles, two-wheelers and the farm segment, and a drop in imports.

Satish Sharma, President, Asia Pacific, Middle East & Africa (APMEA), Apollo Tyres added the demand in