Rubber India Weekly
 
 
Search Archives:
 
 
   
 
 
Nov 13, 2019
 
ATMA: Tyre exports in April - Aug rise 12%, second highest in 6 years
 

Tyre exports have been a silver lining for the industry which has seen sharp demand contraction as vehicle manufacturers battle decadal slowdown in sales, across categories. Nandini Sen Gupta  

In the domestic market, demand from vehicle companies has been very poor but tyre replacement demand has been good. Chennai: Tyre exports from India rose 12% year-over-year (YoY) in volume in April - August 2019-20, according to data from industry body Automotive Tyre Manufacturers Association (ATMA).

The tyre exports hit double-digit growth in FY16-17 when it increased by 16%. But the very next year, export growth was down to 6%, followed by a 0.2% fall in FY18-19.

Tyre exports have been a silver lining for the industry which has seen sharp demand contraction as vehicle manufacturers battle decadal slowdown in sales, across categories.

Tyre production in April to August 2019-20 was 764.39 lakh units compared to just over 798 lakh units in the year ago period.

All segments of the automobile industry showed sharp fall in tyre production with passenger cars and SUVs down 8%, medium and heavy commercial vehicles down 5%, motorcycles and mopeds down 3% and three-wheelers down 3%.

Only scooters were up 3% in the period. In contrast exports of 4797456 units in April -August FY19-20 was up 12% over 4293429 units exported in the year-ago period. Almost all segments have shown increase in exports - passenger vehicle tyre exports were up 8%, medium and heavy commercial vehicles up 17%, motorcycles up 30%, scooters up 20% and three-wheelers up 16%. Only niche segments like implements, off-road tyres,industrial tyres and tractor tyres showed drop in exports.

Satish Sharma, President-Asia Pacific, Middle East, Africa, Apollo Tyres, said, "Typically, Indian tyre industry exports 10-12% of their total revenue and the balance is consumed domestically. So although exports are up, it impacts a small base".

In the domestic market, demand from vehicle companies has been very poor but replacement demand has been good.

"In car tyres, replacement and OE demand is 50:50", said Sharma. "Tractors are more OE skewed while CVs are 70% replacement market. From value perspective OE market is 27% while replacement is 73%", he explained.

 
 
 
© Copyright 2019. All India Rubber Industries Association. All rights reserved.

© Copyright All India Rubber Industries Association. All Rights Reserved. 

SSL