Strategy and Structure of the Indian Tire Manufacturing Industry
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Code : COM0266
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Region : India |
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Introduction: The first decade of the new millennium saw India emerge as the center of rapid economic growth. The government of India had stressed the importance of building infrastructure and this in turn had given a tremendous boost to the expansion of road infrastructure and transport. The vehicle count on the roads increased consistently and was expected to increase further. This growth provided an impetus to the Indian tire industry to grow rapidly. The demand for and growth in the industry depended primarily on factors such as GDP growth, agricultural and industrial production, and growth in vehicle demand. The secondary factors included infrastructure development and interest rates. The top players dominated the industry, accounting for more than eighty percent of the revenues. They provided a substantial product-mix with a presence in various segments. The tire industry thrived due to increasing orders from original equipment manufacturers (OEM) and replacement markets. |
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As of 2010, the tire industry had an annual turnover of Rs.250 billion with a total production of 1.35 million M.T. India was also being looked at as a competitive outsourcing destination for automobile components, which further fueled hopes about the future progress and growth of the Indian automobile industry. The tire companies in India planned to expand their reach to foreign markets. Experts were of the view that with this aim in mind, companies needed to build up efficient marketing and manufacturing coalitions and thereby build up substantial scale.....
