blog.gurfalconoverseas.in

Indian Tyre Exports Surge 17% in Q1 FY25: Riding the Wave of Global Demand

December 1, 2024 | by gurjeetsaini@yahoo.com

tyres-scaled

India’s tyre exports surged by 17% year-on-year in the first quarter of FY2024-25, reaching ₹6,219 crore, according to data from the Ministry of Commerce, as reported by the Automotive Tyre Manufacturers Association (ATMA). This rebound follows a 14% decline in the same period last year, signaling the sector’s resilience and growing integration with global supply chains.

Strong Performance Across Key Markets

The United States retained its position as the largest export destination for Indian tyres, accounting for 17% of the total export value. Other major markets included Brazil, Germany, France, and Italy, highlighting the expanding global footprint of Indian tyre manufacturers.

Exports now span over 170 countries, reflecting the growing demand for high-quality, competitively priced Indian tyres in both established and emerging markets.

Category-Wise Growth: Motorcycle Tyres Lead

  • Motorcycle Tyres: Exports witnessed an impressive 38% growth, marking them as the top-performing category.
  • Truck and Bus Radials (TBR): These tyres saw a strong 31% increase in export volumes, underscoring their critical role in the industry’s success.

Factors Driving Export Growth

ATMA Chairman Arnab Banerjee highlighted the key drivers of this growth:

  1. Focus on R&D: Continuous investment in advanced technology and innovative product development.
  2. Competitive Pricing: Strategically positioned pricing has boosted demand across price-sensitive markets.
  3. Regulatory Alignment: A globally aligned regulatory environment in India has enhanced the addressable market for Indian tyres.
  4. Improved Global Demand: Easing monetary policies in key markets have further supported growth.

Banerjee remarked, “This rise in exports is a testament to the Indian tyre industry’s ability to adapt and integrate with global supply chains effectively.”

Challenges on the Horizon

Despite the strong performance, the industry remains cautious about potential downside risks, including:

  • Global supply chain disruptions.
  • Geopolitical tensions, including the West Asia crisis.
  • Rising shipping and logistics costs.

Looking Ahead: A Promising Path Forward

The remarkable growth in Q1 FY25 underscores the potential of India’s tyre industry to strengthen its foothold in international markets. As manufacturers continue to invest in innovation and capitalize on favorable market conditions, the sector is poised for sustained expansion, paving the way for increased global leadership.

With a robust strategy and focus on quality, Indian tyre manufacturers are set to drive forward, meeting the rising global demand and exploring new frontiers of growth.

RELATED POSTS

View all

view all