India’s tire industry will reach $22 billion in 10 years: ATMA

According to the Automotive Tire Manufacturers’ Association (ATMA), Indian tire industry revenue is expected to double to $22 billion by FY2022, from $9 billion in FY22.

This forecast is based on a study by CRISIL Market Intelligence & Analytics Consulting.

This growth will also drive the sector’s cumulative investments to increase from $7 billion in FY22 to $12.5 billion in FY32.

The study has identified increasing demand for new vehicles and continued government investment in infrastructure as the key drivers of growth, along with a growing vehicle fleet fueling tire demand in the replacement market.

According to the study, the industry’s revenue is set to grow a whopping 100 basis points to 3.4% of India’s manufacturing gross domestic product (GDP) by fiscal 2032, compared to 2.2% in fiscal 2022.

In addition, its contribution to goods and services tax will increase from $2 billion to $4.1 billion, the number of jobs supported from 1.9 million to 3.7 million and its share of world trade from the current 3, 1% to 4.5%.

Anshuman Singhania, Chairman of ATMA and Managing Director of JK Tire & Industries Ltd, said: “The Indian tire industry has the potential to lead domestic production on the global stage. Tires made in India are exported to more than 170 countries, with the US and Europe buying the most tires. It is time for the industry to be strengthened in terms of raw material security and by removing export barriers.”

The import share of locally made tires has already fallen from 42% in FY19 to 34% in FY23, the report said.

Hemal N Thakkar, Director & Practice Lead, Transport, Logistics and Mobility, CRISIL MI&A Consulting, said: “The Indian tire industry has become one of the dominant players globally and exports account for almost a third of production by value.”

Related Articles

Back to top button