Next year’s Tyrexpo India show in Chennai, to take place from 9-11 July, will focus on the increased radialisation of truck and bus tyres in India. According to ECI International, the show organiser, this is a reflection of the huge investments local and international tyre manufacturers are making in producing TBR radials for the domestic market.
Amongst the manufacturers are Indian tyre makers Apollo, BKT, Bridgestone India, Ceat, Dunlop India, Falcon Tyres and JK Tyre that are in the process of building new tyre factories, dedicated to producing truck and bus radials. Industry analysts estimate that by 2013 there will be an additional 25% manufacturing capacity for TBR radial tyres.
External manufacturers are investing in the change, too. Michelin is to invest US$800 million in its new Chennai plant, which will have a capacity of 300,000 radial tyres and Continental is said to be spending EUR50 million to increase its truck radial capacity in India by 2013.
Although the market for TBR radials only account for a mere 15% of the huge commercial vehicle market, due to a variety of factors, including poor roads infrastructure, heavily overloaded commercial vehicles and a subsequent lack of OEM demand, the time is right now for growth. This is because the government plans to build 35,000 km of new roads over the next two years as well as a 2005 court ruling on the overloading of trucks has increased interest in radial tyres.
Industry sources estimate the Indian tyre industry’s annual turnover at Rs 300,000 million, with exports accounting for Rs 36,000 of this. During the year to the end of September 2011 an estimated 119.2 million tyres were produced in India by 39 tyre companies; the ten largest manufacturers produced 95% of the total. Truck and bus tyres accounted for 65% of tyre industry turnover, with the replacement market making up around 70% of this.
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