Tyre makers to go through rough patch due to slowdown in auto sector

Following a 6.7% growth in FY19, the domestic tyre demand is estimated to grow at a lower rate of 3-4% (volume) during FY20, according to Icra

Slowdown in the automobile industry is likely to curtail the tyre industry’s revenue growth to between three and four per cent in this financial year, as compared to 6.7 per cent in 2018-19, says ratings agency ICRA.

The replacement segment, 55 per cent of industry volume, is likely to grow by five to six per cent (5.7 per cent last year). While demand growth in the original equipment (OE) segment is pegged at only two to three per cent (7.8 per cent a year before), affected by subdued vehicle production.

Beyond this, Indian tyre demand is expected to grow by