Indian Tyres Market - Forecast(2022 - 2027)

Report Code: ATR 0104 Report Format: PDF + Excel

Indian Tyres Market Overview

The global Indian Tyres market is forecast to reach $192.3 million units by 2026, growing at a CAGR of 3.81% from 2021 to 2026. Tyre is a circular shaped component of a vehicle, usually made of synthetic or natural rubber, polyester tyre cords, fillers, plasticiser, chemicals, bead wires, vulcanization accelerator, and other components used for covering the rims of a wheel and to protect the rims. The Indian Tyre market growth is mainly attributed to various factors including the development of the Indian automotive industry and governments initiatives in the form of subsidies to promote the usage of electric vehicle. Economical growth of this country and rise in purchasing power accelerates the demand for passenger cars are playing a major role in the growth of Indian tyres industry. Furthermore, the growing health consciousness among the people is creating demand for bi-cycles, which creates opportunities for the tyre market. Hence, the above-mentioned factors are set to boost the market growth for Indian Tyres Market during the forecast period 2021-2026.

Report Coverage

The report: “Indian Tyres Market– Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Indian Tyres Market. 
By Structure: Radial, Bias, Solid and Others.
By Distribution Channel: Online, Offline
By Component: Rubber, Fillers, Plasticiser, Chemicals, Bead wires, and others.
By Vehicle Type: Passenger Vehicles (Two wheelers, Three Wheelers and Passenger Cars), Commercial Vehicles (Light Commercial Vehicles and Heavy Commercial Vehicles)

Key Takeaways

  • Radial tyre is anticipated to witness significant market growth during the forecast period, due to its various advantages over bias tyres.
  • Passenger vehicles is analysed to witness significant growth market growth during 2021-2026, owing to the increasing purchasing power and economic growth of the country along with increasing investment for EVs.
  • The market of Indian Tyres is estimated to witness a significant upsurge during the forecast period, owing to the growth of Indian automotive industry.
  • This industry is consolidated with top market players including Madras Rubber Factory (MRF) Limited, CEAT Ltd., Apollo Tyres Ltd, Continental AG, Pirelli & C. S.p.A. among others.

    Indian Tyres Market Value Share, by Vehicle Type, 2020 (%)

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Indian Tyres Market Segment Analysis - By Structure

By Structure, Indian market is segmented into Radial, Bias, Solid and Others. Radial tyres held the major Indian Tyres market share, around 38.1% in 2020, with a CAGR of 4.12% among the entire segment of structure, during the forecast period 2021-2026. Radial structure-based tyres have many advantages over the other types of tyres. The sidewall of a radial tyres is made of all steel construction, which makes the radial tyres more flexible compared to Bias structured tyres and offers wider footprint that helps to keep vehicles more stable. Due to this, radial tyres consume lower amount of fuel, offers more grip, greater comfort with greater speed along with less rolling and higher puncture resistance. Such advantages drive the growth of this market. Moreover, many companies operating in tyres market also takeg strategic steps that fuels the growth of this market. For instance, in January 2021, JK Tyre and Hyundai Motor India entered into an exclusive partnership to get the supply of UX Royale radial tyres for SUV Creta. Similarly, in July 2020, Apollo Tyres launched its new commercial facility in Gujarat for manufacturing two-wheeler radial tyres and cross-ply tyres. The above-mentioned factor is set to boost the growth of this market during 2021-2026.

Indian Tyres Market Segment Analysis - By Vehicle Type

Based on vehicle-type, Indian Tyres market is segmented into Passenger Vehicles and Commercial Vehicles. According to Indian Tyres market report of IndustryARC, passenger vehicles segment is anticipated to witness a significant amount of growth with a CAGR of 4.37% in the forecast period 2021-2026. Passenger vehicle segment includes Two wheelers, Three Wheelers and Passenger Cars. The growth of this segment is attributed to the increasing purchasing power, which drives the demand for passenger vehicles in this country. According to a report of IBEF, in FY21, passenger vehicles sales reached 27.11 lakhs units in India. Growing awareness among the people regarding the environmental issues and Government’s initiatives to promote the usage of eco-friendly vehicles is driving the growth of E-bikes, e-scooters, electric cars and other eco-friendly vehicles. This in turn drives the demand for passenger vehicles along with the tires market. For instance, in June 2020, Indian Government launched the India Cycles4Change challenge under the Smart Cities Mission by the Ministry of Housing and Urban Affairs, as a response to covid-19. Recently, the Indian Government announced about the increased subsidies on electric two-wheelers for accelerating the adoption and manufacturing rate of electric vehicles in India. Apart from that, people are becoming more health conscious, which is also playing a major role in the growing demand for bi-cycles, as it helps people to stay fit. This will affect the demand for passenger vehicles positively, which will create a prominent upsurge of demand for tyres in India during the forecast period 2021-2026.

Indian Tyres Market Segment Analysis - By Country Analysis

India is one of the emerging economies with massive growth opportunities across industries including automotive. High demand for personal vehicles including cars, bikes and others along with the economic growth of this country and increase in disposable income is creating more demand for passenger vehicles, which is affecting the demand for tyres. According a report of IBE, Two-wheelers and passenger cars represented around 81% and 13% of market share, respectively, for a combined sale of Indian automobiles in FY20. Such increasing sales rate and high production rate creates demand for tyres and to meet such demand top market players are launching advanced products for Indian market. For instance, in August 2020, Continental launched its new range of tyres UltraContact UC6 and ComfortContact CC6, for passenger vehicles in India, specifically designed for the Indian consumers after understanding requirements. These tyres offer better safety, higher mileage, lower noise level, robust sidewalls, improved fuel efficiency, and greater comfort. Furthermore, the demand for commercial vehicles is also growing in this country. According to a recent report total domestic medium and heavy commercial vehicle (M&HCV) sales soared 132% in July 2021 along with 67% rise in sales of total domestic light commercial vehicle (LCV) in July 2021 over July 2020. Such an increase in sales of commercial as well as passenger vehicles will fuel the market growth tyres market of this country during 2021-2026.

Indian Tyres Market Drivers

Growth of Indian Automotive industry is set to Boost the Growth of this Market:

With the economic development and rise in purchasing power, the demand for automotive vehicles is growing in India, which drives the growth of Indian tyre market. In December 2020, Society of Indian Automobile Manufacturers (SIAM) published a report, according to which, the sales of passenger vehicles increased 4.65% to 264,898 units in November. Similarly, a recent reports of Invest India states that, India is estimated to become world’s third largest manufacturer of passenger vehicles by 2021. Such high demand of vehicles also affects the demand of advanced tyres, which gives incentives to the market players of tyre market to launch more advanced products. For instance, in February 2020, Pirelli India had introduced two new models of tyres, Pirelli P7 EVO for cars and Scorpion MTR for SUVs. Apart from that, the growing demand and investment on electric vehicles also has a positive impact on the growth of automotive industry that creates higher demand for tyres, thereby driving the growth of this market. India Energy Storage Alliance estimated that EV market in India will grow rapidly with a CAGR of 36% until 2026. Such a high growth rate of automotive industry will create growth opportunity for the tyre market during the forecast period 2021-2026.

Strategic steps taken by the market players of India will fuel the growth:

The players of this market are taking more strategic steps for the expansion of the market through new product launches, acquisitions, investments and others, which is set to drive the Indian tyres market during the forecast period 2021-2026. In September 2020, Continental launched new range of tyre 10.00R20 Hybrid CHA2 for commercial vehicles in India. This tyre is specifically designed and developed to suit both goods and people segment on Indian roads. This range of tyres offer various advanced benefits such as high mileage, low cut-chip damage and so on. In July 2020, Indian tyre manufacturing company, CEAT announced its plan of acquiring additional 5.14% stake of the online tyre selling platform, Tyresnmore Online. In February 2020, American private equity firm Warburg Pincus LLC. invested around $150 million in Apollo Tyres to purchase compulsorily convertible preference shares (CCPS), through its subsidiary Emerald Sage Investment Ltd. Hence, these types of strategic developments that are taken by the market players are analysed to boost the growth rate of Indian tyres market during the forecast period 2021-2026.

Indian Tyres Market Challenges

Restriction of rubber imports and Covid-19 has affected the market growth negatively:

Even though the Indian tyre market is growing rapidly, but the decline in the sales of automotive industry in the post pandemic period and governments restrictions on rubber imports are a few of the major issues faced by this market. According to some recent reports, post pandemic Maruti Suzuki had witnessed over 70% decline in the domestic wholesales at 35,293 units in May 2021, compared to 1,42,454 units in April 2021. Similarly, in May 2021, Tata Motors and Ashok Leyland witnessed month-to-month 35% and 62% sales decline respectively. The decline in sales in the post pandemic period creates hurdles for the growth of Indian tyre market. Moreover, due to the lockdown and Covid-19, many companies operating in automotive industry faced and are still facing some production disruptions, which affects the tyre market growth negatively. According to the latest report of OICA on production of vehicles, in 2020 India witnessed a 25% decline in total production of vehicles. This also affected the Indian Tyres market. These issues can be solved during the first few years of the forecast period, after the world gets back to its pre-covid situation. However, the import restrictions of rubber are affecting the production rate of tyres. According to Automotive Tyre Manufacturers Association (ATMA), domestic production of natural rubber is not sufficient to meet the complete demand of tyre plants. This will harm the growth of Indian tyres market. Hence, these challenges are poised to impede the growth of Indian Tyres market during the forecast period 2021-2026.

Indian Tyres Market Landscape

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the Indian Tyres Market. As of 2020, the market for Indian Tyres industry outlook is consolidated with the top market players. Indian Tyres top 10 companies include:
  1. Madras Rubber Factory (MRF) Limited
  2. CEAT Ltd.
  3. Apollo Tyres Ltd
  4. Continental AG
  5. Pirelli & C. S.p.A.
  6. JK Tyre & Industries Ltd.
  7. Falken Sumitomo Rubber Industries (Falken Tyres)
  8. Compagnie Generale des Etablissements Michelin SCA (Michelin Tyres)
  9. Goodyear India Ltd
  10. Balkrishna Industries Ltd.

Acquisitions/Technology Launches/Partnerships

  • In March 2021, Apollo Tyres announced the launch of the Apterra Cross range of tyres, perfectly suitable for the compact and mid-size sport utility vehicles.
  • In September 2020, CEAT Specialty introduced its new farm tyre range, Vardhan. This range is available in different sizes on the basis of tractor rear and tractor front.

Relevant Report Titles:

Report Code: AM 31685

Report Code: AM 74946

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1. Indian Tyres Market Overview
    1.1 Definitions and Scope
2. Indian Tyres Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Product Type
    2.3 Key trends segmented by Geography
3. Indian Tyres Market – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis (Comparison of General Price Offerings in the Market)
4. Indian Tyres Market – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Scenario
5. Indian Tyres Market – Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis
6. Indian Tyres Market Analysis (Enterprise License)
    6.1 Ease of Doing Business Index
    6.2 Case Studies
    6.3 Customer Analysis
    6.4 Market Share by Structure
    6.5 Market Share by Distribution Channel
    6.6 Market Share by Component
    6.7 Market Share by Vehicle Type
    6.8 Competition Matrix
7. Indian Tyres Market - Market Forces
    7.1 Market Drivers
    7.2 Market Constraints
    7.3 Porters five force model
        7.3.1 Bargaining power of suppliers
        7.3.2 Bargaining powers of customers
        7.3.3 Threat of new entrants
        7.3.4 Rivalry among existing players
        7.3.5 Threat of substitutes
8. Indian Tyres Market – By Strategic Analysis (Market Size -$Million/Billion)
    8.1 Value Chain Analysis
    8.2 Opportunities Analysis
    8.3 Product Life Cycle/Market Life Cycle Analysis
    8.4 Suppliers and Distributors
9. Indian Tyres Market – By Structure
    9.1 Radial
    9.2 Bias
    9.3 Solid
    9.4 Others
10. Indian Tyres Market – By Distribution Channel
    10.1 Online
    10.2 Offline
11. Indian Tyres Market – By Component
    11.1 Rubber
    11.2 Fillers
    11.3 Plasticiser
    11.4 Chemicals
    11.5 Bead Wires
    11.6 Others
12. Indian Tyres Market – By Vehicle Type
    12.1 Passenger Vehicles
        12.1.1 Two Wheelers
        12.1.2 Three Wheelers
        12.1.3 Passenger Cars
    12.2 Commercial Vehicles
        12.2.1 Light Commercial Vehicles
        12.2.2 Heavy Commercial Vehicles
13. Indian Tyres Market - Market Entropy
    13.1 New product launches
    13.2 M&A's, collaborations, JVs and partnerships
14. Indian Tyres Market – Industry Competition Landscape (Premium)
    14.1 Market Share Global
    14.2 Market Share – Top Regions
15. Indian Tyres Market – Key Company List by Country Premium (Premium)
16. Indian Tyres Market - Company Analysis
    16.1 Madras Rubber Factory (MRF) Limited
    16.2 CEAT Ltd.
    16.3 Apollo Tyres Ltd
    16.4 Continental AG
    16.5 Pirelli & C. S.p.A.
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10
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