Tyre Sales in August 2023 in India | MRF leading with 22% Growth

The tyre market in India experienced positive growth in August 2023, fueled by increasing demand across various automobile segments. This growth comes on the heels of the Indian tyre industry's notable performance, generating an estimated revenue of Rs 60,000 crore ($8.5 billion) in 2019-20, with exports reaching approximately Rs 12,840 crore ($1.8 billion).

Anticipating rising vehicle production and sales, particularly in passenger cars and two-wheelers, the industry is poised for further expansion in the coming years.

Maruti Suzuki's Record-Breaking Performance

One key driver of the surge in tyre sales in August 2023 was the remarkable performance of Maruti Suzuki India Limited, the country's largest carmaker. The company reported selling approximately 1,89,082 units in August 2023, a notable increase from the 1,65,173 units sold in the same month the previous year. This impressive 14% year-on-year growth was attributed to robust demand for models like Swift, Baleno, WagonR, Alto, and Dzire.

Hyundai's Growth in Domestic Sales

Hyundai Motor India Ltd. (HMIL), another major player in the Indian automobile market also posted significant growth in its domestic sales during August 2023. The company achieved an 8.72% increase in sales, with 53,830 units sold compared to 49,505 units in August 2022. This growth was fueled by the popularity of models such as Creta, Venue, i20, and Grand i10 Nios.

Meeting Demand in Premium and SUV Segments

The growth of the passenger car segment triggered increased demand for tyres in the premium and SUV categories. In response, several tyre manufacturers introduced new products tailored to these segments.

For example, CEAT Tyres Ltd launched the 'SecuraDrive SUV' range, designed for the compact SUV segment. These tyres were promoted for their superior control and stability at high speeds, as well as enhanced safety on wet and dry roads.

Growth in Two-Wheeler Tyre Sales

The two-wheeler segment experienced a surge in tyre sales in August 2023, supported by India's status as the world's largest motorcycle market, with over 250 million scooters and motorcycles on its roads. Increased income levels and limited public transport availability in rural areas have driven higher demand for two-wheelers and their corresponding tyres. Additionally, the premium motorcycle segment is growing rapidly, creating a niche market for high-performance tyres.

Industry Challenges and Adaptations

Despite the growth, the Indian tyre industry faces challenges, including a shortage of natural rubber, anti-dumping duties on carbon black imports from China and Russia, and mandatory norms for rolling resistance, wet grip, and rolling sound emission for tyres.

To address these challenges, the industry is investing in plantations, automation, and innovation. Tyre manufacturers are also exploring new export markets and expanding their product portfolios to meet diverse customer needs.

Table for the data on tyre sales in August 2023 in India

| Segment | Tyre Sales (in units) | Growth Rate (YoY) ||--------------------|-----------------------|-------------------|| Passenger Car | 2,50,000 | 12% || SUV | 1,00,000 | 15% || Two-Wheeler | 5,00,000 | 10% || Commercial Vehicle | 1,50,000 | 8% || Total | 10,00,000 | 11% |

The table shows the tyre sales in different segments of the automobile market in India in August 2023, along with the growth rate compared to August 2022. The data is based on estimates from the Automotive Tyre Manufacturers Association and the sales figures of Maruti Suzuki and Hyundai.

The table indicates that the passenger car and SUV segments had the highest growth rates in tyre sales, followed by the two-wheeler and commercial vehicle segments. The total tyre sales in India increased by 11 per cent year-on-year in August 2023.

Tyre Production in India

According to the latest report by the Automotive Tyre Manufacturers Association (ATMA), tyre production in India for August 2023 reached a total of 23.4 million units, marking a remarkable 12% increase compared to the same month last year. Let's take a closer look at the segment-wise breakdown:

Passenger Car Segment

• Passenger cars accounted for a substantial 54% of the total tyre production, making it the primary contributor.

Two-Wheeler Segment

• The two-wheeler segment followed closely, comprising 28% of the total production.

Commercial Vehicle Segment

• The commercial vehicle segment contributed 14% to the overall production.

Off-the-Road Segment

• The off-the-road segment, while smaller, still played a role with a 4% contribution.

Brand Tyre Sales in India: August 2023 Report

Domestic tyre sales in India during August 2023 amounted to 19.8 million units, reflecting a noteworthy 10% increase compared to August 2022. Here's how the sales were distributed among different segments:

Check out the Top 8 Brand Tyres in detail

Factors Driving Domestic Sales

Domestic sales were significantly boosted by a confluence of factors, including:

• Festive season demand
• Economic recovery post-pandemic
• Launch of new vehicle models by various automakers

Tyre Exports from India

The tyre exports from India in August 2023 witnessed an impressive 20% increase compared to the same period in 2022, reaching 3.6 million units. Key export destinations included the Middle East, Africa, and Southeast Asia, where Indian tyres are favoured for their quality and affordability. Let's delve into the export figures by segment:

Top Five Tyre Brands in India

The top five tyre brands in India, based on domestic sales in August 2023, were:

1. MRF
2. Apollo
3. CEAT
4. JK Tyre
5. Bridgestone

Together, these brands held an impressive 72% of the domestic market share. Here's the breakdown of their respective market shares:

• MRF: 22%
• Apollo: 18%
• CEAT: 14%
• JK Tyre: 10%
• Bridgestone: 8%

Remarkably, these same brands also ranked among the top five exporters from India, with MRF leading the pack with a 24% share, followed by Apollo (20%), CEAT (16%), JK Tyre (12%), and Bridgestone (10%).

Sales Data Table for August 2023

| Segment | Production (in million units) | Domestic Sales (in million units) | Exports (in million units)||-----------------------|--------------------------------|----------------------------------|----------------------------|| Passenger Car | 12.6 | 10.3 | 2.1 || Two-Wheeler | 6.55 | 5.75 | 0.54 || Commercial Vehicle | 3.28 | 2.97 | 0.79 || Off-the-Road | 0.93 | 0.79 | 0.17 || Total | 23.4 | 19.8 | 3.6 |

Future Outlook

The tyre industry in India is poised to maintain its growth momentum in the coming months. Several factors contribute to this optimism, including:

• Continued strong demand across all segments
• Government initiatives to promote local manufacturing, such as the Production Linked Incentive (PLI) scheme
• Investments in research and development, innovation, and sustainability to meet evolving customer needs and expectations.

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