Things are looking up for the domestic tyre industry, with a report saying it will grow 12 times by 2047.
Led by a strong domestic original equipment manufacturer (OEM) sector, replacement tyre demand, and the accelerated expansion of vehicle exports, the Indian tyre industry's production volume alone is expected to expand approximately four times by 2047, according to a joint report by ATMA and PwC India.
"During this period, the industry’s revenue is expected to grow 12 times to reach ₹1,300 thousand crore by 2047," the report said.
Attributing the sharp rise to premiumisation, increase in the prices of raw materials, growing exports, servitisation, the report said emerging consumer trends are in favour of the industry’s transformation.
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"India's journey towards Viksit Bharat 2047 presents a huge opportunity for the tyre industry, not only to meet the aspirations of its domestic customer base but also to exponentially scale up tyre exports, especially in the commercial vehicle and passenger vehicle segments across key markets like the US and EU," observed Kavan Mukhtyar, Partner and Leader at Automotive at PwC India.
A dynamic global business environment and sustainability imperatives present a unique opportunity for the Indian tyre industry to transform itself and drive sustainable growth through 2047, he added.
As per the report, rising economic activity from infrastructure spend and strong domestic consumption will drive OEM and replacement tyre revenue by a 10 per cent CAGR till FY47.
Besides, the export market for Indian tyres is set to expand significantly by FY47, with targeted interventions, it added.
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