Singhania stated that India’s exports are penetrating Western markets, which currently exhibit latent demand. He highlighted that previously, the export portfolio didn’t fully meet global market demands, but significant investments in TBR, PCR, and off-highway tyres are expected to bolster demand moving forward. Additionally, alignment of standards with global norms is anticipated to support export growth.
Exports, which now account for nearly one-third of tyre production in terms of value, have nearly doubled over the past four years. India currently ships tyres to over 170 countries, with substantial demand stemming from the EU, US, Brazil, UAE, and UK. The US stands as the largest market, absorbing roughly 25% of India’s total tyre exports. The tyre industry is advocating for Free Trade Agreements with Latin American and African nations to expand exports.
While exports are poised to triple, the industry turnover is projected to surge to Rs 2 lakh crores in the next 4-5 years from Rs 90,000 crores in 2022-23, buoyed by increased vehicle demand, infrastructure enhancements, and replacement needs. The industry contributes approximately 3% to India’s manufacturing GDP.
Prime Minister Narendra Modi recently urged the industry to collaborate with farmers to reduce rubber imports. Singhania revealed that the industry consumes around 13 lakh metric tonnes of natural rubber annually, while domestic production stands at only 8 lakh metric tonnes. Four major tyre manufacturers represented by the association have pledged Rs 1,100 crores for rubber plantations spanning 2 lakh hectares in the North Eastern states to bolster domestic production.
Regarding the Red Sea shipping crisis, Singhania mentioned that the tyre industry has yet to witness significant impacts. He noted that while the crisis has increased lead times by 15-20 times and escalated container prices considerably, the tyre industry has not experienced significant repercussions thus far, and anticipates a resolution in the near future.