India – Demand for Tyres Expected to Increase 20%

Demand for tyres in India is expected to grow 20 per cent in the 2011 financial year, the Economic Times newspaper reports. This current fiscal figure is two per cent higher than in the previous financial year, and is said to be taking place on the back of strong demand for vehicles across all segments.

During 2009-10 India produced 97.136 million tyres, as opposed to 82.107 in 2008-09. Rajiv Budhraja, director general of the tyre manufacturer’s association ATMA states that tyre manufacturing in India “will see a double-digit growth this year on the back of a strong demand for vehicles across all segments. Tyre demand is expected to grow 20 per cent.” Demand for truck and bus tyres is expected to increase 12-15 per cent 18-20 per cent for passenger car tyres, he added. Light commercial vehicle tyre demand is expected to grow 8-10 per cent while demand for tractor tyres would go up 22-25 per cent. Demand for motor-cycle tyres is also set to increase by 20-22 per cent this year as against 18 per cent last year.