The revenue of Indian tyre industry is likely to see a two-fold growth to USD 22 billion by FY32 from USD 9 billion in FY22, as per the Automotive Tyre Manufacturers’ Association (ATMA).
This forecast is based on a study by CRISIL Market Intelligence & Analytics Consulting.
This growth will also see cumulative investment by the sector jump from USD 7 billion in FY22 to USD 12.5 billion in FY32.
The study has identified rising demand for new vehicles and continuous government investments in infrastructure as main drivers for growth along with a growing vehicle park that drives tyre demand in the replacement market.
According to the study the industry’s turnover will increase a solid 100 basis points to 3.4% of India’s manufacturing gross domestic product (GDP) by fiscal 2032 compared with 2.2% in fiscal 2022.
Further, its contribution to goods and services tax will rise to USD 4.1 billion from USD 2 billion, number of jobs supported to 3.7 million from 1.9 million and share in global trade to 4.5% from 3.1% right now.
Anshuman Singhania, Chairman, ATMA, and MD, JK Tyre & Industries Ltd, said, “The Indian tyre industry has the potential to lead domestic manufacturing on the global stage. India-manufactured tyres are being exported to more than 170 countries, with the US and Europe buying the most. It is time the industry is empowered in terms of raw material security and by pulling down barriers affecting exports.”
Already import content in locally made tyres have gone down from 42% in FY19 to 34% in FY23, said the report.
Hemal N Thakkar, Director & Practice Lead, transport, logistics and mobility, CRISIL MI&A Consulting, said, “The Indian tyre industry has become one of the dominant players globally and exports contribute nearly one-third of the production in value terms.”