OEM tyre demand to surge in India: Report
Research and Markets, market analysts, in its report on “India Tire Market Forecast & Opportunities, 2021” has forecast a CAGR of over 9% during 2016-2021. Though the replacement tyre demand had a majority share in 2015, the OEM tyre demand is expected to outpace it during 2016-2021, the report says.
Two-wheeler tyre segment, which accounted for a volume share of over 50% in the country’s tyre market in 2015, is also expected to maintain its position as the largest tyre segment over the next five years.
In 2015, Northern region accounted for the largest share in India’s tyre market, followed by Southern, Eastern and Western regions of the country. Over the next five years as well, Northern and Southern regions are forecast to continue their market dominance and grab a cumulative market share of nearly 59% in 2021, the report added.
According to the Research and Markets study, with favourable inflationary scenario, expanding middle class population and increasing national disposable income, tyre sales across all the automobile segments are expected to grow in the coming years.
With more than 60 tyre manufacturing plants spread across the country in 2015, India ranks among one of the largest tyre markets in the world. Growing automobile sales coupled with expanding automobile fleet are the major factors boosting demand for tyres in the country.