The excerpts:
Q: What is your outlook for the tyre industry in 2024?
Market sentiment for the passenger segment in the domestic market is expected to be muted to positive. However, the premium segments will continue to grow. The outlook for the commercial vehicle segment is muted in the domestic market. The economic situation in international markets will continue to be under pressure but the same will be dynamic for us.
Q: What are the key micro and macro indicators that will play an important role in shaping up the tyre industry in 2024?
In terms of macro events, there is a general election in India and the US this year. The US elections will be an important event to keep an eye on. Recession in key global markets will be a concern but I don’t expect a major impact as we are widespread and growing. We hope there will not be any major geopolitical conflict. Within the domestic market we are hoping the CV segment will turn around in 2024 after the -elections.
Q: What is your view on the readiness of the tyre industry towards the adoption of multiple fuel technologies and electric vehicles (EVs) in the automotive sector?
We are already in the market with dedicated tyre platforms for all categories of electric vehicles (EVs). We see good traction in the E2W segment, followed by the car segment. We have started working on all other alternative fuel technologies. As an industry, we co-develop tyres with vehicle manufacturers so I am confident that we will be ready before these alternative fuel technologies make commercial launches
Q: What will be the key technologies that will shape the next decade of the tyre industry?
Tyre industry will move to more non-carbon / greener material as global markets push for stringent norms. Lot of R&D investments by the tyre companies are being deployed for this. In the manufacturing process also we will drastically reduce our carbon footprint.
The ability of tyre to capture data and transmit on the go is another important area of focus for the industry. This is one area which will open up a lot of use cases once we see some commercially successful use cases. Partnership with OEs will be critical to success and only stronger ‘work together’ can create a win-win for success in international business. First, is to create a consistent product which requires manufacturing capability that can serve for long term, and digital capability across the process cycle. Our Halol plant was recently accredited as a ‘LightHouse factory’ under Industry 4.0, these unique standout capabilities build credibility in international markets which need consistency at scale.
The other area for future readiness is the R&D capability to work on constant product upgradation and product life cycle management. This will play a key role as vehicles, and driving conditions evolve across the world. Everything from design to simulation before a tyre can be placed for testing to varied testing capabilities are key ingredients for readiness. We test our tyres across many test circuits across the world with experienced drivers who bring a balance of subjectivity and objectivity to testing.
Q: What are the key factors that work in favour of India and what limitations does it have as a country?
India is the fastest-growing large economy and has a large consumption market, which makes it an attractive destination.
In the past few decades, India has invested in building infrastructure for global supply as well as digital infra. Strong programs like Make-in-India, Production linked incentive (PLI) schemes, etc. We recently also participated in Bharat Mobility and are thankful to the Indian government for the vision to bring the automobile industry under one single roof for a congregation not seen so far in the country.
Q: What is your vision 2030 for the tyre industry?
We expect the tyre industry to double its revenue. Also, the industry will increase its share in the country’s GDP and contribute to incremental employment generation. I expect tyre exports from India to grow disproportionately to overall growth as India is emerging as a preferred manufacturing destination for global companies. Indian players are building credibility for quality and consistency.
