Indian Auto Industry
13 May 2016
Ramachandran Srinivasan
India is a democratic country with a population of 1.26 Billion of which 60% of are young population below 30 years of age. In the year 2014 people elected a new Government on Pro-Development agenda.
The New Government is aggressively promoting the "Make in India", facilitating businesses in transport sector (road building, transport, auto and tire industry) besides the major infrastructure push for setting up mega power generation, improving mining and creating 100 smart cities and are simplifying taxation laws such as direct tax code and goods and service tax.
China, Japan, US, Canada, Australia and many other countries have already committed to support India’s growth story.
Tire industry
Overall tire production increased at an average of 16% mainly due to the growth in the passenger, 2/3 wheelers, motorcycle and light commercial vehicles markets.
Truck commercial vehicles tire production is also expected to show some positive trends.
Tractor tire production which showed a drop of 4% is bound to pick up in the next financial year.
Tire units such as MRF are already expanding their units in Tamil Nadu and Medak (AP).
Birla Tire will maximize production in their Balasore unit. Birla tires is also in the process of negotiating sale of their modern TBR and radial passenger plant.
JK has set up a new plant in Chennai and is targeting for 1.46 mio T&B tires, 7.6 mio passenger tires.
Continental is setting up an R&D centre at Bangaluru with an investment of 12.4 mio Euros.
BKT with almost 30% growth for last years is expected to mark a 2 billion USD Turn over by 2020.
2/3 wheelers and motor cycle units are expanding their current capacities.
The writer benefited from ATMA and Articles in Economic Times for the data given in this article.