Tyre demand to grow 6-7%
Research and rating agency, ICRA, expects the domestic tyre demand to report a volume growth of 6-7 per cent, supported by a broad-based revival in automotive original equipment manufacturers (OEM) demand. The pick-up in rural expenditure with good monsoon would translate into higher OEM demand for the rural-centric two-wheeler (2W) and tractor segments. Growing fleet on ground and higher miles driven/freight moved would drive replacement sales, stated the report. Domestic tyre makers have invested significant amounts in new capacities in Truck & Bus Radial (TBR) and 2W segments, over the last several years. As a result, between FY10 and FY16, the industry witnessed the completion of Rs 20,000-crore investments.