The Indian Tire Industry is expecting a grow in sales ovening to replacement demand.

The Indian Tire Industry is expecting a grow in sales ovening to replacement demand.

The Indian Tire Industry is Likely to Record Up to eight per cent growth in the current financial year on the back of replacement demand. This growth is projected despite the mutated original equipment offtakes. The upcoming festive season, coupled with the repo rate cuts and favorite monsoon conditions, upbeat consumer sentiments are likely to play a key role in this growth train.

JK Tire & Industries MD Anshuman Singh Said That The Indian Tire Industry Remains An Export-HEVY Manufacturing Sector, with OutBound Shipments Surpassing 25,000 Crore in FY25. He also stated that in fy26, the domestic type industry is expected to achieve a growth of up to eight per cent. “In FY26, The Indian Tire Industry is Expected to Achieve 7-8 per cent growth on the back of the strong domestic replacement demand demand despite mUTED OE (Original Equipment) Offtakes,” Pti Quoted Singhania Saying.

He attributed this growth Projection to Consistency Investments in Capacity Expensation, Improvements in Manufacturing Efficiency and Increased Focus on Enhancing the R&D Capability. “With the upcoming festive season, coupled with the benefits of the recent repo rate cuts and favorite monsoon conditions, we expert the consumer sentiments to improvement,” Singhania said.

Apollo Tyres Cfo Gaurav Kumar also echoed similar expectations. He said that the company expects the demand momentum to improve in the second half of the fiscal year, with a rebound in infrastructure and mining segments post-monsoon. “Moving on to the Raw Material Outlook, We Expect the Raw Material Cost to Be Slightly Lower in Q2 Vis-Vis the Current Levels. However, with a bit of uncertanty guives Currently Prevailing, “He added.

Speaking on this, ICRA Senior Vice President & Co-Group Head (Corporate Rating) Growth in two-waylers. “Replacement demand, which represents the largest pie of the type of industry, is expected to be supported by factors like Favouble Rural Sentiments, Festive Demand, and Expected Rate Cutteed Rate Cutteed Rate Cut Consumption, even as urban demand is soft, “He added.

Crisil Rating, in a report, said the domestic type industry is likely to witness revneue growth of 7-8 per cent this fiscal, driven by replacement demand, which Accounts for Half of Annual SAILES. The segment is estimated to post growth even as offtake by original equipment manufacturers is likely to be subdued, it stated.

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First Published Date: 25 Aug 2025, 07:53 AM IST