Despite a slackening of natural rubber prices, the general trend for raw materials was upwards. Synthetic rubber prices, for example, rose 35 to 40 per cent in the 2011-12 year, and although manufacturers implemented numerous price increases during the 12 month period, ICRA says the operating margins of several tyre makers – Apollo Tyres, Goodyear India, JK Tyre and MRF were four companies named – contracted by approximately 180 basis points. Price rises continued in the first quarter of the 2012-13 financial year.
According to "India Tyre Market Forecast & Opportunities, 2017" India tyre market will witness phenomenal growth in near future Hence ample job opportunities are to be created in next few years.The outlook for the Tyre market in India seems very promising as the overall consumer spending and population is on rise. Better quality tyres are available at affordable price due to the number of players in the market where retreading has proved to be an added advantage where it has one of largest base across the globe.
- At present there are 40 listed companies in the tyre sector in India.
- Major players are MRF, JK Tyres, and Apollo Tyres & CEAT, which account for 63 per cent of the organized tyre market. The other key players include Modi Rubber, Kesoram Industries and Goodyear India, with 11 per cent, 7 per cent and 6 per cent share respectively. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS-Srichakra, Metro Tyres and Balkrishna Tyres are some of the other significant players in the industry.
- While the tyre industry is largely dominated by the organized sector, the unorganized sector is predominant with respect to bicycle tyres.
- The major factors affecting the demand for tyres include the level of industrial activity, availability and cost of credit, transportation volumes and network of roads, execution of vehicle loading rules, radialization, retreading and exports.