2012

India Tyre Market Forecast & Opportunities, 2017

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Table of Contents
1. Executive Summary 2. Global Tyre Market Outlook a. Market Size i. By Value ii. By Volume b. Market Share i. By Region ii. By Company c. Global Replacement Tyre Market 3. India Tyre Industry Outlook a. Production i. By Volume ii. By Segments iii. By Region b. Sales - 5 i. By Value ii. By Volume iii. By Segments iv. By Company 4. Raw Material 5. Tyre Trade a. Import b. Export 6. Replacement Tyre Market 7. India Tyre Industry - PEST Analysis 8. Policy and Regulatory landscape 9. Market Trends & Developments a. Increasing Automobile Production and Sales b. Increasing use of rethreaded tyres c. Increasing investment d. Increasing Radialisation 10. Competitive Landscape a. MRF i. Company Description ii. SWOT Analysis b. Apollo i. Company Description ii. SWOT Analysis c. JK Tyres i. Company Description
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ii. SWOT Analysis d. CEAT i. Company Description ii. SWOT Analysis e. Birla Tyres i. Company Description ii. SWOT Analysis f. Bridgestone i. Company Description ii. SWOT Analysis g. GoodYear i. Company Description ii. SWOT Analysis 11. Disclaimer

List of Figures:
Figure 1: Countries with Increasing GDPs 2011 (PPP in USD Billion) Figure 2: Global Tyre Market 2009-2017 (USD Billion), By Value Figure 3: Global Tyre Market Size 2009-2017 (Million Units), By Volume Figure 4: Global Tyre Market Share 2010, By Region Figure 5: Global Tyre Market Share 2011, By Region Figure 6: Global Tyre Market Share Forecast 2017, By Region Figure 7: Global Tyre Market Share 2010, By Company Figure 8: Global Replacement Tyre Market Size 2009-2011 (Million Units), By Volume Figure 9: Global Replacement Tyre Market Size 2012-2017 (Million Units), By Volume Figure 10: Global Replacement Tyre Market 2009-2011 (USD Million), By Region Figure 11: Global Replacement Tyre Market Forecast 2012-2017 (USD Million), By Region Figure 12: India GDP Vs Inflation 2002-2011 Figure 13: Indian Population 2000-2011 (Million) Figure 14: India Tyre Production 2004-2011 (Million Units), By Volume Figure 15: Indian Tyre Production Forecast FY11-FY17 (Million Units), By Volume Figure 16: Tyre Production by Segment (%), FY11 Figure 17: Tyre Production by Segment (%), FY17 Figure 18: Indian Tyre Production, Trucks & Buses (Million units), 2006-11 Figure 19: Indian Tyre Production, Trucks & Buses (Million Units), 2011-17 Figure 20: Indian Tyre Production, Passenger & Utility Vehicles (Million Units), 2006-11 Figure 21: Indian Tyre Production, Passenger & Utility Vehicles (Million Units), 2011-17 Figure 22: Indian Tyre Production, Light Commercial Vehicles (Million Units), 2006-11 Figure 23: Indian Tyre Production, Light Commercial Vehicles (Million Units), 2011-17 Figure 24: Indian Tyre Production, Agricultural Vehicles (Million Units), 2006-11 Figure 25: Indian Tyre Production, Agricultural Vehicles (Million Units), 2011-17 Figure 26: Indian Tyre Production, Two Wheeler Vehicles (Million Units), 2006-11 Figure 27: Indian Tyre Production, Two Wheeler Vehicles (Million Units), 2011-17 Figure 28: Indian Tyre Production, Two Wheeler Vehicles (Million Units), 2006-11 Figure 29: Indian Tyre Production, Two Wheeler Vehicles (Million Units), 2011-17 Figure 30: Tyre Industry Turnover (Rs. Crore), FY11-FY17 Figure 31: Tyre Industry Turnover by Segment (%), FY11*
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Figure 32: Tyre Industry Turnover by Segment (%), FY17 Figure 33: Tyre Industry Domestic Sales by Volume (Million units), FY10-17 Figure 34: Tyre Industry Domestic Sales by Segment (Million units), FY11 Figure 35: Tyre Industry Domestic Sales by Segment (Million units), FY17 Figure 36: Indian Tyre Industry Market Share, FY11 Figure 37: Indian Tyre Industry Market Share, FY17 Figure 38: Truck and Bus Tyre Segment Market Share By Company, FY11 Figure 39: Passenger Car Tyre Segment Market Share By Company, FY11 Figure 40: Light Commercial Vehicle Tyre Segment Market Share By Company, FY11 Figure 41: Tractor Front Tyre Segment Market Share By Company, FY11 Figure 42: Tractor Rear Tyre Segment Market Share By Company, FY11 Figure 43: Tractor Trailor Tyre Segment Market Share By Company, FY11 Figure 44: Off The Road Tyre Segment Market Share By Company, FY11 Figure 45: 2 & 3Wheeler Tyre Segment Market Share By Company, FY11 Figure 46: Motorcycles Tyre segment Market Share By Company, FY11 Figure 47: Production & Raw Material Cost (Rs. Crore), FY'10 Figure 48: Raw Material Share in Tyres Manufacturing Figure 49: Raw Material Cost by Segment (%), FY10 Figure 50: Natural Rubber Consumption by Tyre Industry (Metric Tonnes), FY07-FY10 Figure 51: India Tyre Import By Value and Volume, 2009-17 Figure 52: India Tyre Export By Value (Rs. Crores), 2009-17 Figure 53: Indian Replacement Tyre Market (Million units), 2009-17 Figure 54: Indian Replacement Tyre Market By Value (Rs. Crores), 2009-17 Figure 55: Indian Automobile Production with Sales (Million units), FY' 2004-10 Figure 56: Indian Automobile Production with Sales (Million units), FY' 2010-17 Figure 57: Indian Automobile Production By Segment, FY '10 Figure 58: Tyre Retreading Market Opportunity (Rs. Crore), FY10-FY17 Figure 59: Retreaded Tyre Export By Segment (%), FY'10* Figure 60: India Tyre Radialisation Level By Segments, 2005-2010

List of Tables
Table 1: Global Tyre Market Size By Region, 2009-2017 (USD Million) Table 2: Global Tyre Market Share By Region, 2009-2017 Table 3: India Tyre Production By Segment, 2006-2011 (Million Units) Table 4: India Tyre Production By Segment, 2012-2017 (Million Units) Table 5: Tyre Industry Sales by Replacement, OEM and Export Market, FY10 Table 6: Tyre Industry Sales by Replacement, OEM and Export Market, FY11 Table 7: Tyre Import by Segment (Rs. Crore), FY08-FY10* Table 8: Tyre Import by Segment (000), FY08-FY10* Table 9: Tyre Exports (Units), FY09 & FY10 Table 9: Replacement Tyre Market by Segment (Million), FY'09 Table 10: Custom Duties on Tyres Table 11: Excise Duty on Tyres Table 12: Upcoming Tyre Projects with Capital Investments. Table 13: Radial vs. Cross-ply T&B Tyre Table 14: Competitive Landscape

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1. Executive Summary
Tyre manufacturing has been one of most important stakeholder for the automotive industry. The tyre manufactured to run thousands of miles in all types of road in muddy terrain, rocky slopes, deserts and frozen lands up, can have many and varied components responsible for the performance necessary to ensure by this complex product. Tyres were invented in 1845 following the accidental discovery of the vulcanization of rubber by the American Charles Goodyear in 1830. Perfectly matching processes and raw materials such as natural rubber, synthetic rubber, petroleum products such as carbon black, steel cables, steel or nylon cords, chemicals such as sulfur, born a tyre, considered a major automotive parts. Rubber, the raw material from which tyres are made, can be either naturally obtained from the sap of the rubber tree or artificially manufactured from petroleum. The share of use of each of these items in the manufacture of tyres varies according to the use to be made to the final product. With 3000 different kinds of tyres from over 117 major manufacturers globally have made the industry worth of USD XXXX Billion by 2011. In 2011, the worldwide tyre market has witnessed a growth at a CAGR of around XXX% with XXX Billion units sold globally. By the end of 2017, it is anticipated that global tyre market will touch the new height of USD XXXX Billion with sales of XXXX Billion units. In 2017, Asian market will continue to grow and maintain their lead with XXX% of the global market share where as US and European market share would decrease and reach to XXXX% and XXXX% respectively. Globally, over XX Billion tyres are manufactured annually, in over 400 tyre factories, with the top three tyre manufacturers - XXXXXXXX, XXXXXX and XXXXXXX commanding around 60-65% total market share. Global tyre replacement market reached XXXX Billion units in 2011 and is anticipated to reach at XXXX Billion units till 2017 and Asian countries will dominate the replacement market as well.

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Indian tyre manufacturing plants has produced XXXX Million units in 2011 which is further expected to grow at the CAGR of XX% and reach XXX Million units by the end of 2017. Tyre sales in India reached Rs. XXXXX Crores with XXX Million units in 2011. The tyre sales in India are expected to grow further at a CAGR of around XX% for next five years to reach Rs.XXXX Crores by 2017. Indian tyre industry is dominated by two Wheeler segment, and nearly more than XX% of production and sales were generated from two wheeler segment in 2011 and it will continue its rhythm till 2017. In 2011, two wheeler tyre sales reached to XXXX Million units where as India produced XXXX Million units and by the end of 2017 two wheeler sales will reach XXX Million units. Passenger car segment has been the second most growing segment where the tyre sales were recorded at XXXX Million units and due to the growing demand would reach to XXX Million units by 2017 capturing around XXXX% of the total market sales. Trucks & bus tyre segment and pickups segment sales were nearly same in 2011 but pickups segment would decline a bit and reach to XXXX Million units till 2017. Construction and mining vehicles are anticipated to grow rapidly and it comes under Off the road vehicles segment have contributed XXXX Million units sales in 2011 and by the end of 2017 it is expected to reach up to XXXX Million units which would be a XXX% sales jump. XXXXXX is the leader in Indian tyre industry with 30.70% market share in 2011 and by the end of 2016 it is anticipated to continue the leadership with XXXX% market share. XXXX and JK tyres are close competitor of each other with 17.39% and XXXX% market share respectively. CEAT has contributed close to XX% market share followed by Birla with XXX%. Bridgestone has been successful to gain XX% market share whereas the rest of the market share is scattered with number of small players capturing less than 5% such as XXXXXXXX, XXXXX, XXXXX, Govind Tyres, etc.

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XXXXXX is leading the market majorly because of the tie ups with OEMs and exports which makes him the leader in almost all of the available segments. Being followed XXXXXX which is the second largest producer but gets weakened due to its non production activities in the two wheeler tyre segment. Bridgestone on the other hand is market leader in Replacement passenger car segment with major tie ups with almost XX automobile companies capturing xxx% market share for the segment. Replacement market currently stands at Rs.XXXXX Crores selling around XXX Million tyres in FY 2011 which is further anticipated to grow at a CAGR of more than XXX% to reach Rs.XXXXXX Crore market with XXX Million units. Export market earnings has been in correlation to the declining rupee value and currently stands at Rs.XXXXX Crores where the imports for the same period stood at Rs.XXXX Crores and by 2017 end exports is expected to reach to Rs.XXXXX Crores and imports at Rs. XXXXX where the growth is led by the growing global demand in the developing countries majorly. XXXXXX has also started selling its two wheeler tyres under the distributorship of XXXXXXX and is in the final stages of officially introducing passenger and T&B radials in India. Consumers are aware of the inflated price difference at which company offers its products but on the other hand also appreciate its unmatched performance which makes them buy its products.

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Figure 6:Global Tyre Market Share Forecast 2017, By Region

XXXXXX 26.33%

Europe 22.16%

Middle East & Turkey 6.37% XXXXX 6.54% XXXXX 1.30%

XXXXX 37.30%

Figure 54: Indian Replacement Tyre Market By Value(Rs. Crores),2009-17

50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 FY' 2009
Source: XXXXXXXXX

CAGR= XXXX%

FY' 2010

FY' 2011

FY' 2012

FY' 2013

FY' 2014

FY' 2015

FY' 2016

FY' 2017

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10.

Competitive Landscape
Table 14: Competitive Landscape Table
MRF Apollo J.K Tyres CEAT Birla Bridgestone GoodYear

Employees in India Sales in India (Rs. Crores)

XXXXX

XXXXXX

XXXXX

XXXXX

XXXX

1280

XXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

Production in India Year of Starting Business in India No. of Production Plants in India

XXXXX

XXXXX

XXXX

XXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

1958

XXXXX

XXXXX

XXXXX

XX

XX

XX

XX

XX

XX

Dealers in India

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

Distributors in India Best Selling Model in Cars in India Best Selling Model in Two Wheelers in India Best Selling Model in Trucks/Buses in India

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

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