New Delhi, Sep 16
Due to a resilient original equipment manufacturer (OEM) base, acceleration in vehicle exports, and replacement demand, India's tyre industry revenue is expected to grow 12 times to Rs 1.30 lakh crore by 2047, a report said on Tuesday.
The industry's production volume would expand approximately 4 times during the period.
"The sharp rise in revenue growth is attributed to a change in the tyre industry’s revenue mix, premiumization, increase in raw material prices, growing share of exports, electrification and servitisation," a joint report by the Automotive Tyre Manufacturers Association (ATMA) and PwC India said.
Ensuring sustained and cost-competitive availability of natural rubber, a dynamic regulatory environment, and non-tariff barriers will be among the key challenges for the growth of exports.
Tyre companies will need to find an economically viable solution to scale and manoeuvre data security and regulatory issues to reach servitisation potential, the report highlighted