Double digit growth expected for tyres manufacturers
Updated Jul 22, 2021 04:04 am
- Top tyres manufacturers of India expected to witness double digit growth in revenue due to improved sales to automakers and in the aftermarket segment. A report by Motilal Oswal Institutional Equities, brokerage firm, expansion in capacity and increase export demand will help in the growth after the low performance in past five years.
- Analysts of the brokerage firm said, “The Indian tyre industry is expected to recover from five years of weakness and be on a linear growth path (12% CAGR over FY21-25E), supported by timely capacity expansion across companies. Improving demand, stable competitive intensity, and peak capex (capex of INR116b over FY22-24E v/s INR135.5b over FY19-21) augurs well for profitability.”v