Tyre Exports And Replacement Demand

The tyre industry is banking on exports and replacement demand to drive growth. Ashish Bhatia weighs in on the tailwinds and the headwinds.

- Ashish Bhatia

All through the pandemic marred fiscal, the tyre industry turned adversities into opportunities. If there were headwinds like the availability of Natural Rubber (NR) and the shortage of performance tyres, the industry tactically dealt with them to the extent possible with an emphasis on encouraging local produce by Indian growers. The segment also benefitted from the tailwinds like government interventions restricting high volumes of import, revised axle-load norms compelling OEMs to re-engineer, demand for replacement tyres and the buoyancy of Indian exports. At a time when international trade was faced with disruptions owing to the Covid-19 pandemic, tyre exports from India are known to register a 70 per cent growth. "The export performance bears testament to the ability of the Indian tyre industry to meet the rising expectations from India in the new geopolitical scenario despite the odds of challenging times", averred Satish Sharma, Chairman of Automotive Tyre Manufacturers Association (ATMA) and President - the Asia Pacific, Middle East & Africa (APMEA), Apollo Tyres Ltd.