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In a bid to gain market share in the premium tyre segment, CEAT Ltd has launched a range of premium steel radial tyres which will be sold direct to consumers.
The steel radial tyres that were earlier only manufactured and sold to Original Equipment Manufacturers (OEM) will now be available for aftermarket.
“Premium tyres have been a focus area for a few quarters and the category is moving well. Across categories, consumers are willing to pay more for tyres. The steel radial tyres are 3 per cent of the overall motorcycle segment but it is gaining saliency. The product is premium including the technology that it offers. The segment is margin accretive and we see a big opportunity. We would want to be market leaders in the segment,” said Arnab Banerjee, MD and CEO of CEAT Ltd to businessline.
The steel radial tyres have steel-belted radial construction that provides superior handling at high speeds. The tyres are equipped to provide stability at speeds up to 270 mph.
The company is also expanding its presence in the hinterland and will be increasing its touchpoints in CY24. The company is also expanding its presence in the hinterland and will be increasing its touchpoints in CY24. It has penetrated 615 districts and 10,000 towns and has collaborated with shops selling FMCG and essential products in the rural market.
“We are identifying where the tyre consumption is present. We touched 50,000 touchpoints in CY23 and have kept a target of 1,00,000 touchpoints. We also have to see the incremental cost of servicing the touchpoints,” he said.
- Also read: We welcome competition but it has to be a level playing field: Shailesh Chandra, Tata Motors
The company is also expanding its international footprint and will be entering the United States of America market with passenger cars, trucks and bus radial tyres. It has a presence in the Europe market with truck and bus radial tyres and plans to increase penetration with speciality tyres.
Rural growth
The demand for tyres in rural areas is slow with the non-farming segment continuing to be impacted.
“Rural areas are improving with the farm sector doing well. The non-farm segment is hit hard. It will be a slow progress. The overall economy is not back to pre coronavirus but we are seeing some positivity,” added Arnab Banerjee.
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