Whalesbook
Indian tyre companies are significantly strengthening their global footprint, with a remarkable four manufacturers now listed among the world's top 20 tyre producers. This prestigious ranking is based on the latest Global Tyre Report by Tire Business, using CY2024 sales data.
MRF has claimed the highest position among Indian firms, securing the 13th spot globally. Following closely behind are Apollo Tyres at 14th and JK Tyre & Industries at 19th. CEAT makes its debut on this elite list, entering at the 20th position.
Rajiv Budhraja, Director General of the Automotive Tyre Manufacturers Association (ATMA), commented, "The presence of four Indian tyre companies among the world’s top 20 is a matter of immense pride for the Indian manufacturing ecosystem. It reflects not only the scale we have achieved, but also the focus on technology and global competitiveness that Indian companies have pursued. This milestone is a validation of India’s emergence as a global hub for high-quality, value-driven tyre manufacturing."
The report also highlights the historical progress of some of these companies. Apollo Tyres has climbed three positions in global ranking since 2013, while JK Tyre has advanced an impressive six positions over the same period. CEAT has demonstrated exceptional recent momentum, moving up three spots in just the last year.
Furthermore, Indian manufacturers are demonstrating global leadership in specialized and high-performance tyre segments. MRF leads the world in racing tyre manufacturing with three plants and ranks second globally in motorcycle tyre production with four plants, followed by CEAT with three. In the farm tyre segment, MRF holds the second global rank with seven manufacturing plants.
Future outlook for the Indian tyre industry is exceptionally bright. A joint report by ATMA and PwC India forecasts that India’s tyre production volumes could grow nearly fourfold by 2047, with industry revenues projected to expand almost twelvefold to approximately ₹13,00,000 crore.
Impact
This news has a significant positive impact on the Indian stock market, particularly for the tyre sector. It indicates strong global competitiveness and future growth potential, which can lead to increased investor confidence and potentially higher stock valuations for these companies. The projected revenue and production growth further underscore the sector's economic importance and investment appeal.
Rating: 8/10
Terms Explained:
CY2024 sales: Refers to sales figures for the calendar year 2024.
Global Tyre Report: An annual publication by Tire Business that ranks the world's leading tyre manufacturers based on their sales performance.
Global standing/ranking: A company's position relative to its competitors worldwide based on specific metrics like sales or market share.
Manufacturing ecosystem: The network of companies, suppliers, and related industries involved in the production of goods.
Global competitiveness: A company's or country's ability to compete effectively in international markets.
Specialised and high-performance segments: Niche areas within the tyre market that focus on specific applications (like racing or high-speed driving) or require advanced technology and materials.
Production volumes: The total quantity of goods produced.
Industry revenues: The total income generated by a specific industry sector.
Approximately ₹13,00,000 crore: Roughly 13 trillion Indian Rupees.