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The Indian tyre industry has witnessed a remarkable turnaround in its export performance, with a substantial 17% year-on-year growth recorded in the first quarter of the current fiscal year (FY25). This surge in exports comes after a 14% decline in the corresponding quarter of the previous year, showcasing the industry’s resilience and ability to navigate the evolving global landscape.

According to the data released by the Ministry of Commerce, India’s tyre exports reached ₹6,219 crore during the first quarter of FY25, a significant increase from the ₹5,333 crore recorded in Q1 of FY24. The Automotive Tyre Manufacturers Association (ATMA) has attributed this resurgence to a combination of strategic factors employed by Indian tyre manufacturers.

One of the key drivers behind this growth is the sustained investment in research and development (R&D) and the development of advanced technology products. Indian tyre companies have been at the forefront of innovating and enhancing their product offerings to cater to the diverse needs of global markets. This focus on technological advancements has not only improved the quality and performance of Indian-made tyres but has also enabled them to stay competitive in the international arena.

Additionally, the Indian tyre industry’s efforts to maintain competitive pricing and implement effective branding strategies have been crucial in boosting its global appeal. By striking the right balance between quality, cost, and brand recognition, Indian manufacturers have been able to capture a larger share of the global tyre market, despite the challenging economic environment.

ATMA Chairman Arnab Banerjee highlighted that “improving demand prospects in key export destinations and expected monetary easing also helped growth” during the first quarter of FY25. This points to a broader recovery in global demand, which has provided a tailwind for Indian tyre makers to expand their footprint overseas.

The rise in exports shows the Indian tyre industry’s deeper incorporation into global supply chains. Banerjee emphasized that the globally aligned regulatory environment for tyre manufacturing in India has also played a crucial role in increasing the addressable market for Indian-made tyres. This alignment has enabled Indian manufacturers to seamlessly integrate their products into the global supply network, thereby enhancing their competitiveness and accessibility to international buyers.

An analysis of export destinations shows the broad global appeal of Indian-made tyres. The United States has emerged as the largest market, accounting for a 17% share of Indian tyre exports during the first quarter. Other major export markets include Brazil, Germany, France, and Italy, underscoring the diverse geographic reach of Indian tyre companies.

In terms of product categories, passenger car radial (PCR) tyres remained the largest exported segment, closely followed by motorcycle and farm/agricultural tyres. Interestingly, the highest growth in export volumes was witnessed in motorcycle tyres, which saw a remarkable 38% increase. Truck & Bus Radial (TBR) tyres also recorded a substantial 31% rise in exports.

The robust performance of motorcycle and TBR tyres highlights the versatility and competitiveness of the Indian tyre industry, as it caters to the diverse needs of global markets. This diversification of export portfolios has been a key strategy employed by Indian manufacturers to navigate the evolving global landscape and mitigate risks associated with over-dependence on any single product category or market.

However, Banerjee cautioned that downside risks to Indian tyre exports continue to persist. Factors such as global supply chain disruptions, geopolitical tensions, the West Asia crisis, and rising shipping costs remain areas of concern that could potentially impact the industry’s growth trajectory.

The rebound in tyre exports in Q1 FY25 highlights the Indian tyre industry’s resilience and adaptability despite challenges. The sustained focus on R&D, technological advancements, and strategic pricing and branding initiatives have enabled Indian manufacturers to capitalize on the improving global demand and strengthen their position in the international market.

Moreover, the industry’s enhanced integration with global supply chains and the favourable regulatory environment in India have further bolstered the export potential of Indian-made tyres. As the industry continues to navigate the evolving global landscape, the ability to address downside risks and maintain its competitive edge will be crucial in sustaining the momentum of export growth.

In conclusion, the resurgence in tyre exports during the first quarter of FY25 highlights the Indian tyre industry’s growing prowess and its ability to capitalize on emerging opportunities in the global market. As the industry continues to innovate and adapt, it is poised to further solidify its position as a major player in the international tyre trade. The industry’s strategic focus on R&D, technological advancements, pricing, branding, and global integration have been the key drivers behind this remarkable turnaround, and they will continue to be the cornerstones of its future success in the global arena.

The image added is for representation purposes only