Thursday, October 3, 2019

Amidst Changing Prices and Market Challenges, Tyre Industry Continues to Innovative for Sustainable Growth

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The Indian tyre industry is witnessing a decent growth in the current year, as compared to the previous year, amidst the challenges of obtaining raw materials and auto industry slowdown. 

In FY2018-19, one of the major players in the industry, Apollo Tyres has reported 18 per cent of growth at Rs 17,273 crores, compared to Rs 14,674 crores in 2017-18. On the other hand, JK Tyre achieved a turnover of Rs 10,000 in FY2018-19 by increasing its market presence. Even with an unprecedented slowdown in the auto industry, the tyre manufacturers have been able to perform efficiently. 

The tyre industry is driving on a robust de-risking strategy by looking at non-auto segments like off-highway and OTR tyres. It continues to innovate by looking at efficient and cost competitive products amidst the changing pricing and market trends, market fluctuations, variations in demand-supply proportions, driving forces, limitations, etc.

The availability of the raw materials is another concern for the tyre manufacturers. However, major players like Ruia Group have been agile and flexible in their operations. They have been operating in the international markets, chalking out a strategy to turn global and expand the operations.         

Strategic plans, promotional activities, brand developments, mergers, acquisitions, ventures, amalgamations and partnerships are some of the traits acquired by major tyre manufacturers. The Indian tyre industry is utilizing all its capabilities to cope up with the change in preference of the users, says Pawan Ruia, Chairman of Ruia Group. It is estimated to grow by 11 per cent in the unit volume, on the back of strategies previously used in the advanced markets of the US and Europe.

This shift in focus has helped the tyre manufactures to formulate schemes, combining market knowledge with technology to get a larger share of the market. They are working closely with OEMs (original equipment manufacturers) to get the configuration right.

The latest regulations and norms are laying stress on setting up new standards in a challenging environment. Moderating costs despite of rising raw material prices have deepened the market presence of tyre manufacturing brands. They are also laying emphasis on the future growth by anticipating the change in infrastructure and mobility, says Pawan Ruia.

The industry continues to look at new ways to grow and achieve better export performance, making new strides in quality improvement. It is also aiming at rolling out fuel efficient and low rolling resistance tyres to address the needs of manufacturers with electric vehicles. Taking pro-active initiatives to build confidence, the tyre industry is re-visiting and solidifying all areas of its interest to create an impact.

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