India Update for December

by Huned Contractor

India’s tire industry seeks raw material partners to unleash growth – According to Automotive Tyre Manufacturers Association (ATMA) Chairman Anshuman Singhania, India’s tire industry has immense growth potential in the emerging new world order. However, an effective collaboration between the industry and raw material partners is imperative to harness this potential. As per a statement issued after the conclusion of the ATMA Partners Summit, a key highlight of the event included the high profile industry presentations made by Indian Synthetic Rubber (ISRPL), Synthetic Rubber Business of Reliance Industries (RIL) and ExxonMobil on segments such as SBR, PBR and butyl rubber, respectively.

Hike in plantation sector allocation – The Government of India has hiked the allocation to the plantation sector significantly and believes that commodities such as
tea, coffee, spices and rubber can contribute in achieving the targeted exports of $400 billion for 2021-22.

CEAT launches puncture-safe tires – India’s leading tire manufacturer, CEAT Tyres, announced the launch of its puncture-safe tires for motorcycles in Maharashtra,
India. The range of tubeless tires will offer technology to consumers that will resist loss of air pressure in case of a puncture, allowing a hassle-free and safe ride.

Improving demand to trigger tire industry’s growth – Improving demand along with stable competitive intensity and peak capex are expected to trigger linear growth for the Indian tire industry. While OEM demand is expected to see a cyclical recovery over the next two to three years, replacement demand is expected to benefit from pent up demand, import restrictions and premiumization witnessed across the automotive segments in the last five years, according to a report by Motilal Oswal Financial Services.

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