Sailing with the growth momentum two-wheeler industry witnessed during last year, the tyre maker, TVS Tyres plans to increase its manufacturing capacity by 12% or 2,00,000 tyres per month this fiscal.
The company currently produces 1.7 million tyres per month.
Mr P Vijayaraghavan, director, TVS Srichakra Ltd, which sells tyres under TVS Tyres brand, said that “We had expanded our capacity by 10% last year to achieve 1.7 million tyres per month. Being the market leader in two-wheeler segment, we expect demand for tyre to increase as two-wheeler industry is expected to grow at double digit rate this year.”
Industry data said that India’s two-wheeler industry grew by 7.3% in 2013-14, while this year it is expected to grow by double digit rate.
Aiming further penetrating in the after-market segment, TVS Tyres launched a roadshow in Ahmedabad on Tuesday to sensitise people about road safety and explore potential in the after-market segment.
Mr Vijayaraghavan, who was in town for the roadshow also, said that TVS Tyres ranked third in the after-market segment while MRF Tyres and CEAT were the leaders.
Industry estimates showed two-wheeler sales in the Q1 of current fiscal grew by about 15%, which is expected to reflect in the growth in demand for tyre as well.
TVS Tyres, which has two manufacturing facilities each in Madurai and Pantnagar, also manufactures off-road tyres for tractors and agri applications.
However, most of the off-road tyres are exported to countries in Africa and South East Asia.