Research reveals that a total of 5.5 million replacement car tyres were sold throughout the country, while major markets were Delhi and Mumbai as per GfK.
It was also revealed that there are a total of 3,000 tyre specialist shops selling passenger car tyres in a total of 43 cities across the country. Delhi’s contribution to this market stood at 12% followed by Mumbai at 9%, Hyderabad at 6% and Bangalore at 5%. Markets of Kolkata, Chandigarh, Ahmedabad and Pune also contributed significantly while Mumbai showed the maximum growth potential with a 17% increase in last quarter. Mumbai also saw highest average selling price of tyres which has totaled US$66 in the past quarter as compared to national average of US$61 during the same period. 700,000 units were sold in September and demand is increasing following new product launches, fluctuating prices of natural rubber and weaker local currencies.
“The replacement market for car tires has been growing this year, thanks to the buzz created by new product launches, consumer promotions amidst turbulent prices of domestic natural rubber, the weakening local currency and volatile economy,” highlighted Anant Jain, Account Director, GfK India.
“With the increasing launch and sales of crossovers and SUVs in India, we anticipate the market to move towards larger sized tires of 16” or more, and this is expected to drive the replacement market for the SUV category at a much higher pace in future,” said Jain. “As SUV tires cost almost twice as much as normal passenger car tires, this presents the potential to generate much higher revenue for manufacturers.”
“The automotive industry in India presents vast possibilities for car tire manufacturers, as evident from the set up or expansion of manufacturing plants by the different players in the country,” commented Jain. “Looking ahead it is expected that the car tire replacement industry shall continue to expand at steady rate, which holds an opportunity for the industry players to drive their growth story,” he concluded.