Sailing with the growth momentum two-wheeler industry witnessed during last year, the tyre maker, TVS Tyres plans to increase its manufacturing capacity by 12 per cent or 2,00,000 tyres per month this fiscal. The company currently produces 1.7 million tyres per month.
“We had expanded our capacity by 10 per cent last year to achieve 1.7 million tyres per month. Being the market leader in two-wheeler segment, we expect demand for tyre to increase as two-wheeler industry is expected to grow at double digit rate this year,” said P Vijayaraghavan, Director, TVS Srichakra Ltd, which sells tyres under TVS Tyres brand.
Industry data showed India’s two-wheeler industry grew by 7.3 per cent in 2013-14, while this year it is expected to grow by double digit rate.
Aiming further penetrating in the after-market segment, TVS Tyres launched a roadshow in Ahmedabad on Tuesday to sensitise people about road safety and explore potential in the after-market segment.
Vijayaraghavan, who was in town for the roadshow also, stated that TVS Tyres ranked third in the after-market segment while MRF Tyres and CEAT were the leaders.
Industry estimates showed two-wheeler sales in the first quarter of current fiscal grew by about 15 per cent, which is expected to reflect in the growth in demand for tyre as well.
TVS Tyres, which has two manufacturing facilities each in Madurai and Pantnagar, also manufactures off-road tyres for tractors and agri applications. However, most of the off-road tyres are exported to countries in Africa and South East Asia.
Out of the total turnover of Rs 1,700 crore achieved last fiscal, the company had exported about 13 per cent of the turnover.
TVS Tyres eyes exports to grow further as it will increase the export of its recently-launched agri-radial tyres.