Tyremakers to invest Rs 35,000 crore in 5 years

Industry eyes double-digit growth in fiscal 2019, after capacity utilisation hits 80%

Having reached the 80 per cent capacity utilisation mark, tyremakers are planning to invest Rs 35,000 crore in greenfield and brownfield projects to expand capacity. The manufacturers also anticipate double-digit growth from FY19 — against single-digit growth this year — driven by domestic and export demand. 

During the same time last year, the capacity utilisation of the tyre industry was 65-70 per cent.

It is not only growth in the automobile industry that has helped the tyre segment. Growth has been aided by government policies also, said Satish Sharma, chairman, Automotive Tyre Manufacturers’ Association (ATMA), which claims to represent about 90 per