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Tyre Exports Stay Afloat, Despite the Slowdown in Domestic Market

Via: ReleaseWire

Updated 10:45 PM CDT, Thu, October 24,2019

The production of natural rubber and tyre exports have increased, although the overall tyre production has decreased in the first quarter

West Bengal, India -- (SBWIRE) -- 10/24/2019 -- Despite remaining in a precarious situation due to the existing slowdown in the domestic industry, the overall tyre exports have gone up by 18 per cent in the Q1 of FY20, signally some respite for the major players in the sector.

However, the overall tyre production has been impacted due to the sluggish nature of the market. The motorcycle tyre production has witnessed a considerable decline in the current year, compared to the last financial year. The car tyre production has also undergone a similar slowdown, after going through a tough time in the previous year as well.

Although the tyre production has gone down from 159.19 lakh units in April-June 2018 to 152.40 lakh units during April-June 2019, there are some positives for the tyre industry, says Pawan Ruia. The production of natural rubber has surged up by 183000 MT during April-July 2019 from 172000 in 2018.

In the last year, the consumption of natural rubber amounted to 4,09,540 MT, which has declined by 5 per cent due to the lower offtake of tyres by the automobile sector. The decrease in the consumption of natural rubber may provide respite from the increasing prices of the raw materials going forward.

On the other hand, tyre exports have increased by 18 per cent to 28.28 lakh units from 24.03 lakh units. The exports of truck and bus tyres surged to 6.40 lakh units from 5.22 lakh units. Apart from this, the passenger car tyres increased from 6.55 lakhunits to 7.57 lakh units from the last year.

At this juncture, there are a lot of positives for the tyre industry, despite the slowdown, says Pawan Ruia, the chairman of Ruia Group. However, it's important for the sector to keep track of the shortcomings to stay afloat in the next quarter as well.

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