It is not really good times for the tyre industry due to the slump in the economy leading to a consequent slowdown in vehicle demand of late. “Following two strong years of growth (~12% and ~14% in FY2018 and FY2019 respectively) the tyre industry revenue is estimated to grow at a lower rate of 3% to 4% in FY2020 affected by modest growth in OE tyre demand on the back of sluggish auto demand and expected moderation in tyre exports,” says K Srikumar, Vice President and Co-Head, Corporate Ratings, ICRA Ltd.
According to ICRA, demand for tyres will take a toll in the current fiscal on the account of subdued vehicle production due to weak consumer sentiments amidst slowing economic activities, rising cost of vehicle ownership and softened rural demand. In this fiscal, volume-wise, demand is expected to grow at ‘a lower rate’ of 3% to 4% as against demand growth of 6.7% in FY2019. The replacement segment, which represent over 55% of industry volumes, is likely to grow by 5-6% in FY2020. While the falling auto sales will hit demand growth in Original equipment (OE) segment which is pegged at lower levels of 2-3% as against 7% to 8% in the last fiscal affected by subdued vehicle production in FY2020.
Plight of the Indian auto and tyre industry
Bu hikaye Rubber Asia dergisinin September - October 2019 sayısından alınmıştır.
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Bu hikaye Rubber Asia dergisinin September - October 2019 sayısından alınmıştır.
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Already a subscriber? Giriş Yap
EVS: What's In Store For Rubber Auto Components?
Evs are going to rule our roads sooner or later. The crucial question here is: How far will this affect the rubber auto components sector? Though there are no clear estimations of the impact of EVs on the auto components industry, indications are that innovative and light-weight rubber and plastic components will have immense scope in the EV era.
TECHNOLOGY IS DISRUPTING TRUCK TIRE MAINTENANCE
Companies that adopt disruptive technologies like Cloud-based, TPMS 2.0 systems position themselves to be extremely successful in a fastchanging and highly-competitive environment by utilizing the data and visibility this technology provides to optimize tire performance and maintenance and expedite operations.
SLOWDOWN HAS NO IMPACT ON AUTO RUBBER COMPONENT INDUSTRY
FROST & SULLIVAN EXECUTIVES
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HOW OLD IS TOO OLD?
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FOR WIDENING SKILLING REACH RSDC & NSKFDC JOIN HANDS
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What other low hanging fruit is available to the modern transport operator that compares with the savings that can be generated by real time monitoring of tyres? Give the humble tyre that supports the loads you impose the only thing it requires to perform for your gain -- the appropriate level of inflation. It is only air, it costs little and provides far greater returns than any other “improvement”
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