Replacement demand to drive tyre sector revenues by 7-8% this fiscal: Crisil
New Delhi [India]July 20 (Memorial): India’s tire industry, withdrawal by the original equipment manufacturers (OEMs) will probably be suppressed and export will be stable, as well as the annual sales, this financially due to the substitute demand will see the increase of stable revenue of 7-8 percent.
In the report, he added that the rising priming is expected to be a slight uprising to realizations. However, the increasing trade tensions and dumping risk of Chinese manufacturers who direct inventories due to US tariffs may cause difficulties.
It is possible that business profitability will remain constant by 13-13.5 percent supported by stable input costs and healthy capacity use.
In the report, this, with strong accrual, lean balance sheets and calibrated capital expenditures, the sector should help maintain the stable loan appearance, he added.
Indian domestic demand pushes 75 percent of the main volume of 75 percent of the basic volume.
Senior Director, Crisil Ratings, Anuj Sethi, “Volume growth is seen in 5-6 percent of this financial, the last financial reflection (taking into account the 50 percent of the volume) will grow 6-7 percent behind a large vehicle base, 25 percent), the OEM volume (25 percent) will support 3-4 percent, and will support the volume of OEM and will support the volume and will support the volume and will The volume will be supported, this will be supported and this will be supported, the volume of the OEM will rise and increase the tire of the last financial volume of the United States, Africa and Latin America. The price that mutually eroded its property responded to its competitiveness. And steep US tariffs limit China’s access to this market and increase the risk of extreme supply to price -sensitive markets such as India.
In order to prevent cheap imports, India is applying anti-dumping and welcome tasks, including 17.57 percent tax on large trucks and bus radial tires from China. However, a wider flow of low -cost tires in other segments may pressure on internal realizations without timely measures.
In addition, the harsh competition in the reserve market will keep the profitability of activity at a rate of 13.0-13.5 percent in this financial year. Almost half of the raw material imported sector is exposed to global prices and fluctuations in exchange rates.
Poonam upadhyay, director Crisil Ratings, “India’s tire sector, the tire sector of India, which is struggling with margin printing, the price competition may concentrate in the event of forced to evacuate low -cost Chinese products. Competitive density, the reserve segment is already in a high risk of extended entry costs, the cost of remaining high, the cost of remaining high -extended entrance cost is to remain low, the highly cost -effectiveness. It is likely to maintain, low -capital, capital sustaining time, capital maintenance, capital maintenance, capital sustaining time, capital maintenance, capital sustaining time, capital period, capital is likely to maintain capital, La6,000 Crore focused on automation and retrospective integration to increase cost efficiency and maintain profitability to high -use passenger car radius and two -wheeled capacities. ”
In 2025 financially, the prices of raw-connected inputs such as natural rubber prices, deterioration and synthetic rubber and carbon black rose by 10-12 percent. In the report, this led to margin erosion, considering the limited cost transition and spare segments in OEM. (MOMENT)
