Tyre industry to see 13-15% growth in FY22

After two years of contraction, the Indian tyre industry is expected to grow 13-15% in unit terms and 7-9% in tonnes during the current financial year, according to ICRA.The growth will be aided by a

After two years of contraction, the Indian tyre industry is expected to grow 13-15% in unit terms and 7-9% in tonnes during the current financial year, according to ICRA. The growth will be aided by a sharp recovery in original equipment manufacturer (OEM) tyre demand, lower base effect of FY21, improving pace of vaccination, continued preference for personal mobility and healthy rural cash flows amid a normal monsoon forecast, ICRA said in a note. “Tyre demand has been relatively more resilient compared with other auto components as the replacement demand in the tyre industry insulates it from cyclicality to a large extent,” said Srikumar Krishnamurthy, VP and co-group head, ICRA.