New Delhi: Domestic tyre industry revenue is expected to grow 12 times to Rs 13 lakh crore by 2047, driven by premiumisation and increased exports, a report released on Tuesday said.
Indian tyre industry production is expected to grow nearly four times by 2047, driven by a strong domestic original equipment manufacturer (OEM) sector, demand for replacement tyres and rapid growth in vehicle exports, according to a joint report by ATMA and PwC India.
“During this period, revenue is expected to grow 12 times to Rs 1,300 thousand crore by 2047,” the report said.
The sharp rise in revenue growth is due to a shift in the revenue mix of the tyre industry, premiumisation, rising raw material prices, rising share of exports, electrification and servitisation, it added.
Kawan Mukhtiar, Partner and Leader (Automotive), PwC India, said, “India’s journey towards a Developed India 2047 presents a huge opportunity for the tyre industry, not only to meet the aspirations of its domestic customer base, but also to rapidly scale up tyre exports to key markets such as the US and the EU, particularly in the commercial vehicle and passenger vehicle segments.”
He further added that emerging consumer trends and shifts in mobility, a dynamic global business environment and sustainability imperatives present a unique opportunity for the Indian tyre industry to transform itself and drive sustainable growth by 2047.
According to the report, rising economic activity driven by infrastructure spending and robust domestic consumption will drive OEM and replacement tyre revenues at a 10 per cent compound annual growth rate (CAGR) by FY47.
Further, with targeted interventions, the export market for Indian tyres is set to expand significantly by FY47.
