The continuing pressure on automobile sales owing to challenging economic environment has substantially impacted the original equipment manufacturer (OEM) demand for tyres in FY14. At the same time replacement demand which constitutes around 65-70 per cent of tyre demand also remained muted. Lower freight demand during past couple of years translated into lower movement of commercial vehicles resulting in low wear and tear of tyres, consequently low replacements during FY14. CARE Research's report on 'Indian Tyre Industry' gives valuable insight of the industry encompassing its size, segments, structure, characteristics, trend analysis of domestic market, export market, competition and imports. The trends are analyzed in depth for various segments by market, namely OEM and replacement and by product classification viz. truck and buses (T&B), passenger cars and jeeps, tractors rear and front, motorcycles and scooters and light commercial vehicles. Study on penetration of radial tyres in T&B OEM as well as replacement market is also detailed out. The cost analysis and profitability presented in the report throws light on critical cost items. The report provides an outlook for key raw materials with respect to their prices for near term basis. The company section in the report provides a snapshot of financial as well as operational performance of the leading four players in the industry.
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