Tyre exports from India went up by 31 per cent and stood at ₹6213 crore in Q1FY23, data released by the Commerce Ministry has shown. In the year-ago quarter, the exports stood at ₹4754 crore.
Even in number terms, double digit growth has been witnessed in major categories. The growth performance in Q1 comes in the wake of robust growth in the tyre exports in FY22 when exports grew by 50 per cent to cross ₹21K crore.
“Notwithstanding challenges to the global economy in view of high inflation, rising interest rates, supply-chain disruptions and heightened energy prices owing to Russia-Ukraine conflict, Indian tyre industry has weathered the storm well and has turned out an impressive export performance”, said Satish Sharma, Chairman Automotive Tyre Manufacturers Association.
Indian technology is converging with the world, leading to an increase in addressable market for Indian tyre manufacturers. However, for widening the footprint of exports, quality consistency needs to be maintained. Accordingly the tyre industry and Rubber Board are collaborating to ensure that raw material producers and the entire value chain align themselves to the exacting standards, Sharma said.
The curb on indiscriminate import of tyres has helped the industry increase size and scale of production and integrate with global supply chains. Truck & Bus Radial (TBR) tyre segment, which witnessed indiscriminate imports suppressing domestic manufacturing till a few years ago, has come into its own after the import curbs. TBR exports accounted for nearly 20 per cent of total tyre exports in Q1FY23.
Indian tyre manufacturing is going through a revolution in matching up with the world’s best. In the modern Indian tyre plants, all concepts of Industry 4.0 or even Industry 5.0 are being applied. And there’s a lot of automation as a result of which, the productivity levels have more than doubled in the last decade. And in the ongoing decade, it will go further up.
Ceat readies to roll into North America, scale up exportsAims to generate quarter of its revenue outside India Europe, the US, Canada and South America, are the target markets for Ceat for car radials, truck and bus radials, tyres for two-wheelers and tyres for the agriculture machinery
Currently, Indian manufactured tyres are being exported to over 170 countries, including some discerning markets in North America and Europe. The US continues to be the largest market for Indian tyres, accounting for 19 per cent of total tyres exported from the country. Top 5 export markets for Indian manufactured tyres include US, Germany, Brazil, UK, and France.
In the coming days, the headwinds to the external sector are expected to continue. Global economic situation with lower growth and tightening of financial conditions will continue to impact exports from India. However, tyre industry is trying to ride through a difficult phase to maintain the export momentum, Sharma added.
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