Nizhnekamskshina to lead Russian tyre market by 2014 – TechSci

TechSci Research, which recently published an analysis of the Russian tyre market covering the next five years, has predicted that Nizhnekamskshina will lead the domestic market by 2014. It says that cheaper manufacturing cost, increasing demand for premium tyres, an increasing number of automobiles on Russian roads and the sale of Sibur will allow the manufacturer to lead by financial year 2014.

According to ‘Russian Tyre Market Forecast and Opportunities 2017’ by TechSci Research, Nizhnekamskshina would lead the Russian tyre market when the total tyre market turnover in Russia surpasses $9,650 million by 2014. Sibur’s sale in 2011’s fourth quarter means that its only close competitor, Nizhnekamskshina is set to surpass it, the report continues: in 2009, Nizhnekamskshina held 15 per cent share alone, with Sibur at 17.9 per cent. Nizhnekamskshina caters to passenger cars, light and heavy commercial vehicles, agricultural machinery and industrial vehicles forming most of the Russian tyre market.

“With the expanding Russian economy, the tyre industry is all set to grow in coming years. It is anticipated that Nizhnekamskshina would lead the market by 2014. The increasing automobile sales in Russia have boosted the market for premium tyres. Russia is emerging as a new home for many global tyre manufacturers because of the benefits offered by the government like cheaper raw material, low energy cost, tax benefits, etc.” said Karan Chechi, research director at TechSci Research.

The Russian tyre industry is clearly one of the fastest growing markets globally, with strong developments in almost all major automobile segments and tyre demand subsequently growing. Tyre manufacturers are ramping up their production capacities in line with the growing automobile sales. These capacity expansion plans will ultimately result in high tyre production, which the TechSci report expects to grow at a CAGR of over 16 per cent during the period 2011-17.

By 2017, automobile production in Russia is expected to reach 4.36 million units where the production’s major share would be led by local foreign companies only. It is anticipated that with increasing automobile production, tyre sales will also grow in OEM segment, said Chechi. The full report is available from the TechSci Research website.