Indian Passenger Tyre Production up 20 per cent

The latest ATMA Indian tyre manufacturers’ monthly production figures show that passenger car tyre production in the emerging market rocketed 20 per cent. In April 1,243,559 tyres were produced as opposed to 1,037,296 in April 2005. The truck market remained flat at 977,510 units, up 0.2 per cent on last April. During the same period jeep tyre production fell 17 per cent from 115,032 units in April 2005 to 95,383 this year.

While the impressive passenger figures and stable truck total may be positive, it seems clear that the increased production is generally destined for the domestic market. In April 2006 truck tyre exports fell 1 per cent, with passenger car tyre exports down 3 per cent.

The most important exceptions came in the OTR and industrial segments. Industrial tyre production increased 28 per cent to 51,954 units in April. Indian OTR tyre production also increased totalling 8452 units, an 8 per cent increase on the same time last year. While production in the segments clearly increased, OTR and industrial exports were also up – 73 and 29 per cent respectively.

The general economic environment also responded to increased production of these raw material intensive products. During the week ended 3 June, prices of “giant tyres” (OTR products), motor tyres and tractor tyres increased by 5, 3 and 1 per cent respectively, local financial sources reported.