Tyre Majors Show Interest in India Production

A number of global tyre majors are making their presence felt in India’s tyre market, a market valued by the Business Standard financial newspaper at Rs 190 billion (£2.44 billion). Industry experts report that Michelin, Pirelli and Yokohama have the setting up of local production in their sights, and Bridgestone intends to further its presence in India.

The global number one player already holds the largest share in this market’s PCR segment, and it intends to boost this through a capacity increase at its facility in the central state of Madhya Pradesh to 11,000 units a day. At present Bridgestone supplies the TBR market with tyres manufactured in Thailand, however the company intends to invest around £100 million in a greenfield truck and bus tyre facility somewhere in India.

Inroads made by multinationals such as Bridgestone into the fast growing Indian market (Automotive Tyre Manufacturers’ Association figures indicate that the market grew by 19-20 per cent last year) are being met by equally vigorous activity from local companies, and ATMA director-general Rajiv Buddhiraja cautioned that “Although foreign tyre companies have started to do good business in India, results may not be as desired.” Numerous local manufacturers, amongst them Apollo, Ceat, JK Tyres and MRF, are all establishing new facilities in the country, and have no intention of leaving the spoils of this dynamic market solely to outsiders.