Tyre-maker CEAT will enter North and Latin America with passenger car and truck and bus radial tyres in 2024.
CEAT will commence exporting their products to North America followed by Latin America. The Mumbai headquartered company has planned to grow its exports to 25 per cent from the current 20 per cent in the next three years.
“The truck and bus radial tyres and passenger car radial tyres will be launched by the end of next quarter. We have moved some of our products for testing in the market and will soon start exporting them to the USA. Exports previous year were 18 per cent and this year close to 20 per cent, we intend to reach 25 per cent,” said Kumar Subbiah, CFO of CEAT Limited to businessline.
- Also read: CEAT stock tanks after Q4 results
The company is also focusing on the European market for its passenger car farm radial tyres.
In the domestic market, the company is looking to increase its penetration in the electric passenger car market, “In passenger cars, CEAT penetration is up to 15 per cent. We would like to get a higher share through electric passenger car tyres. We are partnering with OEMs,” said Kumar Subbiah.
Raw materials
The Tyremaker has increased prices of selected categories as the prices of natural rubber and petrochemical derivatives increased during the quarter. The company is expecting a further increase in raw material prices.
“We may expect the raw material prices to increase by 4 per cent in the coming quarter. There has been an upward movement in the raw material cost from the middle of the last quarter,” added Kumar Subbiah.
- Also read: CEAT posts 22% dip in net profit in Q4
CEAT reported a 22 per cent dip in net profit with ₹102 crore for the quarter that ended in March against ₹132 crore reported during the same quarter last year. The company reported a 43 per cent dip in profit with Rs.182 crore registered in the December quarter.
The company’s revenue from operation grew by 4 per cent with Rs.2,991 crore in March as opposed to ₹2,874 crore during the same quarter last year.