The document provides an overview of the Indian tyre industry. Some key points: - The Indian tyre industry had a turnover of Rs. 25,000 crores in 2009-2010, producing 13.5 lakh metric tons of tyres. The top 10 companies account for over 95% of production. - Raw materials like natural rubber, butyl rubber, and nylon account for 63% of industry costs. India imports some raw materials due to insufficient domestic production. - Growth in the automobile industry, driven by rising incomes, GDP growth, and infrastructure spending, is driving demand for tyres. Major automobile companies are expanding production. - Leading tyre manufacturers include MRF,

1. Tyre Industry AnalysisBy : Gagan Pareek

2. Economic growth drivers….GDP growth as per RBI is 8.5% .Robust industrial growth backed by improvement in consumption demandIncrease in infrastructure spending.Substantial improvement in domestic demand.Increased thrust of the government on infrastructure projects.All time high sales growth of few major automobile companies eg: Maruti Suzuki India Limited sold a total of 10,18,365 vehicles in 2009-10.

3. Indian tyre IndustryIndian tyre industryPassenger vehiclesCommercial vehiclesOthersMHCVHCVLCVFarm VehicleOTRIndustrial vehicleCars Motor Cyclesscooters

4. AN OVERVIEW OFINDIAN TYRE INDUSTRYFinancial Year 2009-2010 Turnover of Indian Tyre Industry Rs. 25,000Crores Tyre Production (Tonnage) 13.50 lakh M.T. Tyre Production – All Categories (Nos.) 971 Lakh Tyre Export from India (Value) :Rs. 3000 croresNumber of tyre companies: 36 Industry Concentration 10 Large tyre companies account for over 95% of total tyre production.

5. Raw Materials of Tyre Industry - Overview Tyre Industry is highly raw-material intensive. Raw materials cost accounts for approx. 63% of tyre industry turnover and 72% of production cost.62% of total Natural Rubber consumption is by the Tyre Sector, balance by rubber based non-tyre industries.Total weight of raw-materials consumed by tyre industry – 15.50 Lakh M.T.Total Cost of Raw Materials consumed by tyre industry – Rs.16,000 CroresRaw Material Availability No domestic Production of Butyl Rubber and Styrene Butadiene Rubber of tyre grades, i.e., 1502 and 1712.Production of Nylon Tyre Cord Fabric, Polybutadiene Rubber, Rubber Chemicals, Steal Tyre Cord, Polyester Tyre Cord insufficient to meet domestic demand. Tyre industry imports raw materials on account of the following factors:

6. Demand Cycle

7. Indian Auto IndustryFactsSecond Largest two wheeler manufacturer in the world

8. Largest tractor and three wheeler manufacturers in the world

9. Fourth largest Commercial vehicle market in the world

10. Eleventh largest passenger car market in the world

11. Growth Potential

12. Can become World’s third largest automobile market in 2030.

13. By 2016, Automotive sector can DOUBLE its percentage contribution to GDP from current levels of 5% (US$50 billion) to 10% ($180 billion).TrendsGrowth of exports of 22.30 FY 2009-10.

14. The Commercial Vehicles segment grew at 4.07 %.

15. Light Commercial Vehicles recorded a growth of 12.29 percent. The Growth Journey

16. Category wise numbersTwo Wheeler Dominated by Motorcycles 80% , Scooters 14% Mopeds 6%Domestic - 7.25mn units . Hero Honda 42% & Bajaj 27% share CAGR – 9.5%Exports 819000 units (07-08) . Bajaj Auto 59% TVS 17% share CAGR – 41%Passenger VehiclesDominated by Cars 78% , MUV/SUV 22%Domestic – 1.5mn units Maruti-46% Tata-15% Hyundai 14% CAGR -14.8%Exports - 217000 units (07-08) Maruti 66% Hyundai 24% CAGR – 26%Commercial VehiclesDominated by M&HCV – Goods 48% Passenger 38% , Rest by LCV -14%Domestic – 487 thousand units , Tata-62% Ashok Leyland -15% CAGR- 22%Exports – 59 thousand units, Tata 67% Ashok Leyland 12% CAGR -30.6%Three WheelerDominated by Passenger Carriers with 64% share , Goods Carrier -36%Domestic – 365 thousand units , Bajaj -42% Piaggio-41% CAGR- 10.5%Export – 141 thousand units , Bajaj -97% CAGR -44.5%

17. Automotive Companies in IndiaMajor Multi-national companiesMajor Indian Companies

18. India : A Developing Hub for Compact CarsCompact cars account for 70% of the total car market.

19. Compact car sales increasing at about 20% each year

20. Excise duty on small cars slashed from 24% to 12% in last three years

21. Maruti Suzuki : • New car plant to make 250,000 cars per annum (total 800,000 cars/annum) • 10 new Component JVs to support new Diesel Engine Plant.Hyundai :