The Indian automotive tyre market is one of the largest in the world. Its value was estimated at $8,081 million as of FY’20, including the original equipment (OE) supply, aftermarket, and exports. The passenger vehicle (PV) and commercial vehicle (CV) tyre segments together contribute almost 40% to the overall volume. These two segments are the biggest revenue generators. Concerning sales, the tyre industry is split in 2: the OE segment, where tyres are supplied to vehicle manufacturers and fitted in new vehicles; and the aftermarket, where consumers procure replacement tyres directly from the marketplace.
The Indian automotive tyre market consists of multiple vehicle segments. To be successful in this market, a company will have to offer both PV and CV tyres, which generate the largest margins and highest volumes in the replacement market.
The COVID-19 pandemic has impacted the tyre industry significantly. Complete lockdowns during the first quarter disrupted tyre sales and production. Manufacturers are working to deal with supply chain disruptions as the import of several raw materials is uncertain. However, after coming out of lockdown, companies have returned to operating at full capacity, and demand from the replacement market has increased, particularly in rural areas. Greater demand from rural communities is tied to people’s increased use of personal transport to maintain social distancing. Given India’s vast geography, it is important for tyre companies to have a strong supply chain so they can serve both urban and rural areas.
Tyre sales in FY’21 are expected to be significantly impacted by COVID-19 as vehicle use has been severely limited during the lockdowns, especially in the CV segment. Public transport services were disrupted even after the lockdown was lifted in many regions across the country. However, tyre sales should recover in FY’22 for both the PV and CV segments, with growth increasing by 14% and 9%, respectively, when compared to FY’21 sales. This revival will result from increased demand for new vehicles and replacement tyres after a conservative year in FY’21. Increased use of personal vehicles will boost replacement demand even further.
In a field of more than 50 global industry participants, Frost & Sullivan independently plotted the top 8 companies in this Frost Radar™ analysis. The Frost Radar™ reveals the market positioning of each company using its Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies based on their strengths, opportunities, and market positioning. We discuss strategic market imperatives and the competitive environment that vendors operate in as well as make recommendations for each provider to spur growth.

Strategic Imperative
Strategic Imperative (continued)
Growth Environment
Frost Radar™: Indian Passenger and Commercial Vehicles Tyre Market
Frost Radar™: Competitive Environment
Frost Radar™: Competitive Environment (continued)
Apollo Tyres
Bridgestone
CEAT
Goodyear
JK Tyres
Michelin
MRF
Yokohoma
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Frost Radar™: Benchmarking Future Growth Potential
Frost Radar™: Benchmarking Future Growth Potential
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Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform
Growth Index
Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.
- Market Share (previous 3 years)
This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years. - Revenue Growth (previous 3 years)
This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™. - Growth Pipeline
This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities. - Vision and Strategy
This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision? - Sales and Marketing
This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.
Innovation Index
Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.
- INNOVATION SCALABILITY
This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals. - RESEARCH AND DEVELOPMENT
This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline. - PRODUCT PORTFOLIO
This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue. - MEGATRENDS LEVERAGE
This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline. - CUSTOMER ALIGNMENT
This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.
Significance of Being on the Frost Radar™
Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.
- GROWTH POTENTIAL
Your organization has significant future growth potential, which makes it a Company to Action. - BEST PRACTICES
Your organization is well positioned to shape Growth Pipeline™ best practices in your industry. - COMPETITIVE INTENSITY
Your organization is one of the key drivers of competitive intensity in the growth environment. - CUSTOMER VALUE
Your organization has demonstrated the ability to significantly enhance its customer value proposition. - PARTNER POTENTIAL
Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.
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| Deliverable Type | Frost Radar |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Parthasarathi Prabaharan |
| Industries | Automotive |
| WIP Number | PB90-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9800-A6,9801-A6 |
Frost Radar™: Indian Passenger and Commercial Vehicle Tyre Market, 2020
A Benchmarking System to Spark Companies to Action—Innovation That Fuels New Deal Flow and Growth Pipelines
23-Dec-2020
South Asia, Middle East & North Africa
Frost Radar
