Germany headquartered research firm, GfK, reveals in a new report that India has a flourishing market for vehicle tyres, with shops numbering over 50,000 across the country to cater to its growing younger population and increasing buying power, backed by higher consumer confidence towards the economy.
The number of tyre shops located in the rural areas, however, outpaces those, which are located in smaller cities. The over 10,000 shops selling commercial vehicle and passenger car tires in smaller cities and villages, as revealed by GfK’s retail study are expected to thrive under the optimistic environment to positively impact related sectors such as tyres, components and accessories.
With the high motorcycle population in the country, it is not surprising that two-wheeler tyres have the highest penetration and are sold by around 50,000 shops. GfK findings also revealed that for smaller cities and rural India, the West region has the highest concentration of shops—with two in five (40%) being located there.
The largest proportion of shops carrying passenger car tyres and commercial vehicle tyres can be found in the North region’s small cities and villages. Amongst the clusters of smaller towns in the country, Maharashtra state boasts the biggest market size as well as retailer concentration. In Rural India, Uttar Pradesh is the major contributor to the sector.