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The domestic tyre industry is likely to register a 7-8% growth in the current fiscal on the back of replacement demand, according to people tracking the sector.
JK Tyre & IndustriesMD Anshuman
Singhania said the Indian tyre industry remains an export-heavy manufacturing sector, with outbound shipments surpassing ₹25,000 crore in FY25.
”In FY26, the Indian tyre industry is expected to achieve 7-8% growth on the back of the strong domestic replacement demand despite muted OE (original equipment) offtakes,” Singhania said in an analyst call.
The growth is attributed to consistent investments in capacity expansion, improvements in manufacturing efficiency and increased focus on enhancing the R&D capabilities,
he noted.
”With the upcoming festive season, coupled with the benefits of the recent repo rate cuts and favourable monsoon conditions, we expect the consumer sentiments to improve further,” Singhania said.
Apollo Tyres CFO Gaurav Kumar told analysts that the company expects the demand momentum to improve in the second half of the fiscal year, with a rebound in infrastructure and mining segments post-monsoon.
”Moving on to the raw material outlook, we expect the raw material cost to be slightly lower in Q2 vis-a-vis
the current levels. However, with a bit of uncertainty given on the exchange rates that are currently prevailing,” he added.
Icra Senior Vice President & Co-Group Head (Corporate Ratings) Srikumar Krishnamurthy said domestic tyre demand from Original Equipment Manufacturers (OEMs) in commercial and passenger vehicle segments is likely to lag the growth in two-wheelers.
”Replacement demand, which represents the largest pie of the tyre industry, is expected to be supported by factors like favourable rural sentiments,
festive demand, and expected rate cut effect on consumption, even as urban demand is soft,” he added.
However, exports are likely to face headwinds from ongoing geopolitical developments and uncertainties around US tariffs, he stated.
Crisil Ratings, in a report, said the domestic tyre industry is likely to witness revenue growth of 7-8% this fiscal, driven by replacement demand, which accounts for half of annual sales.
The segment is estimated to post growth even as offtake by original equipment
manufacturers is likely to be subdued, it stated.
It also noted that the rising premiumisation is expected to give a slight leg-up to realisations.
Also Read: Stocks to Watch: JSW Steel, TVS Motors, CEAT and more
JK Tyre & IndustriesMD Anshuman
”In FY26, the Indian tyre industry is expected to achieve 7-8% growth on the back of the strong domestic replacement demand despite muted OE (original equipment) offtakes,” Singhania said in an analyst call.
The growth is attributed to consistent investments in capacity expansion, improvements in manufacturing efficiency and increased focus on enhancing the R&D capabilities,
”With the upcoming festive season, coupled with the benefits of the recent repo rate cuts and favourable monsoon conditions, we expect the consumer sentiments to improve further,” Singhania said.
Apollo Tyres CFO Gaurav Kumar told analysts that the company expects the demand momentum to improve in the second half of the fiscal year, with a rebound in infrastructure and mining segments post-monsoon.
”Moving on to the raw material outlook, we expect the raw material cost to be slightly lower in Q2 vis-a-vis
Icra Senior Vice President & Co-Group Head (Corporate Ratings) Srikumar Krishnamurthy said domestic tyre demand from Original Equipment Manufacturers (OEMs) in commercial and passenger vehicle segments is likely to lag the growth in two-wheelers.
”Replacement demand, which represents the largest pie of the tyre industry, is expected to be supported by factors like favourable rural sentiments,
However, exports are likely to face headwinds from ongoing geopolitical developments and uncertainties around US tariffs, he stated.
Crisil Ratings, in a report, said the domestic tyre industry is likely to witness revenue growth of 7-8% this fiscal, driven by replacement demand, which accounts for half of annual sales.
The segment is estimated to post growth even as offtake by original equipment
It also noted that the rising premiumisation is expected to give a slight leg-up to realisations.
Also Read: Stocks to Watch: JSW Steel, TVS Motors, CEAT and more
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