Demand side –
1)OEM Market, 2.)Replacement Market & 3)Export
Tyre demand contracted the most in the commercial segments like Trucks & Bus (T&B) (-17%), LCVs (-8%) and Tractors (-18%) in FY20. Consumer segments like PVs and 2Ws were relatively resilient. Tyre demand from OEMs declined by 16.3% in FY20 vs. a 2.7% decline in the replacement segment. The product mix has shifted towards the replacement (57%) segment vs. OEM (43%) in the last 4 years.
1) OEM Production Trends –
2) Replacement Demand
Supply side –
1)Price of raw materials –
2) Production volume of Natural rubber in India for FY06-FY20
3)Consumption volume of Natural rubber in India for FY06-FY20
Source – Statista
Industry has witnessed significant capacity expansion over last 5 years while the industry has seen low demand led to lower capacity utilisation level. Shift towards radial tyres in the MHCV segment was also one of the reasons that drove higher capex. Bias Tyres capacities to that extent were not usable, which also affected the utilization levels.