Chennai: Tyre exports, between April and November were up 11% y-o-y by volume, a shade lower than the 12% y-o-y increase in export volume previously.
Tyre companies exported 77,70,439 units in the April-November period, up from 70,14,231 units in the year-ago period. This despite production dropping by 6% to 1,213 lakh units from 1,294 lakh units in the year-ago period as vehicle companies cut back production drastically, data from Association of Tyre Manufacturers Association (ATMA) said.
Tyre exports hit double-digit growth in FY16-17 when it increased by 16%. But the very next year, export growth was down to 6%, followed by a 0.2% fall in FY18-19. The rise in exports this year comes after two years of sluggish shipments. With tyre product mix reflecting global trends, exports are expected to increase further, said Satish Sharma, president-Asia Pacific, Middle East, Africa, Apollo Tyres.
What has also helped is that vehicle companies, both Indian and MNC, are “increasingly exporting out of India which is a production hub and tyre exports are riding on it. Also globally, ‘made in India’ has as good if not a better reputation than ‘made in China’,” added Sharma. Typically tyre companies export around 10%-15% of their production. Although tyre replacement demand is still buoyant, with domestic sales falling and OEs cutting production, overall tyre production has also taken a hit, said Sharma.
“In value terms OE is 30% while replacement is 70% but in many segments OE volumes are significant,” said Sharma.
The highest increase in exports has been in motorcycles (up 23%), followed by three-wheelers (up 20%). Passenger vehicles are up 10% and medium and heavy trucks and buses are up 12%, the data showed.
Source: timesofindia.indiatimes.com