ATMA: Tire exports in April-August increased by 12%, the second highest in 6 years
CHENNAI Tire exports from India rose 12% year-over-year (YoY) in volume in April-August 2019-20, according to data from industry body Automotive Tire Manufacturers Association (ATMA).
The tire exports alcanzó un crecimiento de dos dígitos en FY16-17 cuando aumentó en un 16%. Pero al año siguiente, el crecimiento de las exports bajó al 6%, seguido de una caída del 0.2% en el año fiscal 19-19.
Tire exports have been a silver lining for the industry which has seen sharp demand contraction as vehicle manufacturers battle decadal slowdown in sales, across categories.
Tire production in April to August 2019-20 was 764.39 lakh units compared to just over 798 lakh units in the year ago period.
All segments of the automotive industry showed a sharp drop in the production of tires with passenger cars and SUVs of 8%, medium and heavy commercial vehicles of 5%, motorcycles and mopeds of 3% and three-wheelers of 3 %.
Only scooters were up 3% in the period. In contrast exports of 4797456 units in April-August FY19-20 was up 12% over 4293429 units exported in the year-ago period. Almost all segments have shown increase in exports – passenger vehicle tyre exports were up 8%, medium and heavy commercial vehicles up 17%, motorcycles up 30%, scooters up 20% and three wheelers up 16%. Only niche segments like implements, off-road tyres,industrial tyres and tractor tyres showed drop in exports .
Satish Sharma, president-Asia Pacific, Middle East, Africa, Apollo Tire s, said, “Typically, Indian tyre industry exports 10-12% of their total revenue and the balance is consumed domestically. So although exports are up, it impacts a small base.”
In the domestic market, the demand of the vehicle companies has been very poor, but the demand for replacement has been good.
In car tires, the demand for replacement and original equipment is 50:50, Sharma said. “Tractors are more skewed than OE, while CVs have a 70% replacement market. From a value perspective, the OE market is 27%, while the replacement is 73%, ”he explained.