Indian tyre makers to invest Rs 6,000 cr.
August 13, 2009 11:38 am
Indian tyre makers plan to invest Rs 6,000 crore, as popularity of radial tyres rises in the commercial vehicles segment. After a ban on Chinese radial tyres, only two international players — Michelin and Bridgestone — have a stake in the $10-million domestic market. However, with the expected entry of companies such as Goodyear, Continental, Kumho, Pirelli, Yokohama and Hankook in the high-profit truck and bus radial tyre segment this year, all that is soon to change.
Incidentally, India’s commercial vehicles segment remains weak in the auto industry, with sales dipping 33 per cent to 1.83 lakh units in FY09. As of now, radials make up only 9 per cent of the CV market against the world average of 65-70 per cent. The industry estimates it to grow to 25 per cent in the next three years.
“Indian companies are working on plans to compete against the rising import of foreign tyres by increasing domestic radial tyre production as well as improving product quality,” said Automotive Tyre Manufacturers’ Association (Atma) chairman R. P. Singhania. As per the association, truck and bus tyre makers have lined up Rs 6,000 crore investments for green field facilities and increasing capacity at existing plants for new-age tyres.
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