Aspiring Automobile's Component Industry Of India

By Author: Deepak Kumar
Total Articles: 2
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India has became a respective hub in automobile's component market across the globe. Undoubtedly, in India, this industry is booming at a rapid rate. A huge number of vehicles around the world, all the way from South Africa to USA and Europe to China they, all are influenced by Indian automobile's component industry, be it nuts, bolts , steel forgings to tyres. One of the sectors that has been surging ahead in the Indian automobile's components industry, is tyre. Additionally, at the time when market have applied hassles on the long-drawn bull run, this is one reliable sector that would accelerate faster in future, India continuous to secure his position as a low cost outsourcing destination for global tyre industry. The great Indian tyre industry includes a large number of small and medium enterprises (SMEs), which is expected to achieve a good chunk of money in next five years down the line.

At this point in time Indian Automobile tyre industry's capital, is somewhere around Rs.20, 000 crore. This industry produces almost al kinds of tyre, except Snow Tyres and Aero Tyre ( because they do not have any specific ...
... demands in domestic market ). Over a period of time, tyre manufacturing industry has developed a great marketing network through dealers and depots, and due to this all types of tyres are easily available even in the remotest corner of the country. It's not surprising to see, internationally acclaimed auto honchos rolling out their vehicles using Indian manufactured tyres. In the year 2009, Indian tyre industry was affected big times because of the global economic slowdown. A valuable relief for tyre manufacturers was provided by the government by reducing the excise duty on tyres to 8% in February 2009.

Some of the major aspects of Indian Automobile tyre industry are mentioned blew:
Increasing Cost of Raw Materials:
Earlier, raw materials comprised of natural rubber, crude and steel based materials. As a matter of fact that raw materials make around 70% of the cost of production, combined with the manufacturers' inability to pass on the increased cost to their esteemed clients because of the high competition, immense rise in prices of these materials have a unbearable impact on profitability.
Increasing radialization:
As we all know that India is a developing nation and unlike the developed countries, radialization has yet not reached its dominance in India. Specially, if we talk about the truck, bus and LCV segments, it continue to be majorly a cross ply based. Apart from giving higher mileage, lower fuel consumption and enhanced safety, radial tyres have yet not found on primarily, which is predominantly because of poor road conditions and high initial cost.
Radicalization will be vital factor, if tyre manufacturers want to save their profitable share in international markets.
Off the Road Tyres:
Last year almost all the top tyre manufacturers enhanced their capacity of OTR (Off the Road) tyre production. Which is a undoubtedly profitable deal. Although off the road tyres are customized tyres, which relatively have higher margin. To improve the profitability, manufactures have even started increasing the proportion of OTR in the product mix.
Despite all the unforeseen challenges, according to the latest research and survey, tyre industry has register an accelerated growth and even it's long term perspective seems very bright. Additionally, automobile and auto parts companies have managed to experience increased amount of sales and stabilized prices of raw material, which would apparently boost tyre sales in the coming future.