Domestic tyre industry is expected to witness double-digit growth next fiscal with the automobile industry back on full swing, JK Tyre Chairman and Managing Director Raghupati Singhania said on Tuesday.
JK Tyre, which on Tuesday introduced a tyre brand -- Levitas Ultra -- to cater to the luxury car segment, is also expected to follow the industry growth path and report a double-digit sales growth next financial year, he noted.
"Tyre industry had undergone a bit of a rough patch in the last couple of years back when the auto industry was in a bit of a slowdown due to Covid and all that... Now with the economic activity improving the tyre industry is coming back on full swing," Singhania said.
He noted that demand remains strong across most segments of the domestic automobile industry.
The industry has also gained immensely from the government's push to boost local manufacturing, Singhania said.
"Over the next 2-3 years, demand for tyres in the country is expected to grow stronger, in view of an uptick in economic activities and the big push envisaged for infrastructure growth," he noted.
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Even this year despite the headwinds and challenges plaguing the global economy, the domestic industry is on track to post double-digit growth, Singhania said.
He noted that the commercial vehicle movement is on the rise with the enhanced economic activity and as a result the trucking business is expected to witness a 5-7 per cent growth.
"So we also expect the tyre demand to grow," Singhania said.
Similarly, with passenger vehicle industry doing well, it will obviously help the tyre industry grow, he added.
He said that the slowdown in the entry level car was a challenge but termed it a temporary phase.
"Then the two-wheeler segment has slowed down a little bit but I hope it will come back...so the tyre industry is expected to grow around double digit next fiscal and so are we planning to grow accordingly," Singhania noted.
On raw material prices, he noted that there has been some relief and the industry doesn't seem to be too much worried in the coming year.
On Levitas Ultra launch, Singhania said the tyres under the range were specially designed to offer customers in the luxury car segment an unmatched performance across all key parameters.
With the healthy revival of the economy, the Indian automobile industry is witnessing an uptick in demand of luxury cars, with the market having grown by nearly 50 per cent, he said.
JK Tyre, with the entry of Levitas Ultra, is well poised to capitalise on this growth by timing it with the growing requirements in the market, the company stated.
The new tyre range would be available in seven sizes and has been rated five star for fuel savings, it added.
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