Tyre industry hopes for 2016 to be the year of growth.
The Indian automotive tyre manufacturers, who have been reeling under poor vehicle off-take & cheap Chinese imports, are hoping 2016 will bring good news for the industry.
For the growth, tyre manufacturers are betting big on the improving demand in medium & heavy commercial vehicles (M&HCVs) and passenger car segments.
“All the growth drivers are in place. Industry has put in adequate capacities to meet the foreseen demand. Auto industry is looking up,” said Rajiv Budhraja, Director General (Automotive Tyre Manufacturers’ Association) ATMA.
“M&HCVs and passenger car segments of automobile industry have shaken off the recessionary phase and are posting decent growth rates”, he added.
M&HCV and LCV tyre production was down by 2 percent and 14 percent respectively in FY 2015-16 (Apr-Sep), whereas passenger car tyres segment saw muted growth of 7 percent in the same period.
“Domestic tyre demand in all segments will grow, and Chinese imports in Truck and Bus Radials have come down. Production of vehicles in CV / LCV, Passenger Car Tractors and Two-Wheelers should see an increase in 2016, as the overall economy may look up, more so in rural segment,” said P Vijayaraghavan, Director, TVS Srichakra.
He further added, “Scooter segment, both in Urban and Semi-Urban, will continue to grow and with Rural market income likely to go up further, Motorcycle sales also will see better numbers, in 2016”.
Source: www.economictimes.indiatimes .com