Indian tyre market weakening

India’s tyre industry may be in for a lacklustre few months, reports The Economic Times. According to the financial daily, Indian tyre industry organisation the Automotive Tyre Manufacturers' Association expects orders from original equipment customers to be lower until about October. Association director general Rajiv Budhraja said the ATMA is “concerned about the falling orders from different manufacturers.” In May 2012, car sales grew a modest 2.78 per cent and truck and bus sales dropped 11 per cent. “The weak consumer sentiment in the market has further impacted prospects with some significant drop in demand from the replacement market," Budhraja added.

The Economic Times stated that Indian tyre makers were cutting production as a result of falling vehicle sales, however it did not name any specific manufacturer that had done so.