Global Commodities Alternative Data and Insights

Helixtap

Helixtap collects, processes and distributes proprietary data, analyses and forecasts for the rubber, latex and automotive markets

CEO, Helixtap

Farah Miller

Commodities

<ul><li>The passenger car segment is leading the Indian tire production surge, banking on the post-pandemic rebound in economic activities and augmented auto sales. Passenger car tire sales have gone on a quantum leap of 46% to 37.6 million units from 25.7 million units contributing significantly to the 23% rise in Indian tire production in April-Dec 2021.</li><li>The ease in travel restrictions coupled with healthy rural and urban cash flow abet the boom in passenger car sales despite the delay in delivery caused by the semiconductor shortage.    In addition, the Director-General of Foreign Trade's move to include tire imports in the restricted category for imports in 2021 also lent some support to the domestic tire industry. The overall tire production went up by an impressive 23% during April-Dec 2021 at 144 million units from 117 million units year-on-year, as per the Automotive Tyre Manufacturers' Association (ATMA) data.  Pre-owned cars get the better of new ones Despite heavy demand, a waiting period of 10-12 months for popular car models has led to a spurt in the sales of used-pre-owned cars.</li><li>According to Rajiv Budhraja, Director-General of ATMA, the new owners generally prioritize changing the battery and tires of pre-owned cars to facilitate unhindered travel, which predominantly boosts tire sales.  The replacement tire market in the commercial segment in India is now twice as big as the original equipment market, whereas, in passenger cars and two-wheelers, it is almost equal to the original equipment market. SUVs account for more than 30% of Indian car sales, up from 10% in 2014.</li></ul>

The passenger car segment is leading the Indian tire production surge, banking on the post-pandemic rebound in economic activities and augmented auto sales. Passenger car tire sales have gone on a quantum leap of 46% to 37.6 million units from 25.7 million units contributing significantly to the 23% rise in Indian tire production in April-Dec 2021.The ease in travel restrictions coupled with healthy rural and urban cash flow abet the boom in passenger car sales despite the delay in delivery caused by the semiconductor shortage.    In addition, the Director-General of Foreign Trade's move to include tire imports in the restricted category for imports in 2021 also lent some support to the domestic tire industry. The overall tire production went up by an impressive 23% during April-Dec 2021 at 144 million units from 117 million units year-on-year, as per the Automotive Tyre Manufacturers' Association (ATMA) data.  Pre-owned cars get the better of new ones Despite heavy demand, a waiting period of 10-12 months for popular car models has led to a spurt in the sales of used-pre-owned cars.According to Rajiv Budhraja, Director-General of ATMA, the new owners generally prioritize changing the battery and tires of pre-owned cars to facilitate unhindered travel, which predominantly boosts tire sales.  The replacement tire market in the commercial segment in India is now twice as big as the original equipment market, whereas, in passenger cars and two-wheelers, it is almost equal to the original equipment market. SUVs account for more than 30% of Indian car sales, up from 10% in 2014.

Passenger Car Sales Boom Boosts Indian Tire Demand

SGX Rubber Future TSR20

Passenger Car Sales Boom Boosts Indian Tire Demand