Domestic tyre industry revenue is expected to grow 12 times to Rs 13 lakh crore by 2047, led by premiumisation and rise in exports, a report said on Tuesday.
Due to the strong domestic original equipment manufacturer (OEM) sector, replacement tyre demand, and the accelerated expansion of vehicle exports, the Indian tyre industry's production volume is expected to expand approximately four times by 2047, according to a joint report by ATMA and PwC India.
'During this period, revenue is expected to grow 12 times to Rs 1,300 thousand crore industry by 2047,' the report said.
The sharp rise in revenue growth is attributed to a change in the tyre industry's revenue mix, premiumisation, increase in raw material prices, growing share of exports, electrification and servitisation, it said.
'India's journey towards Viksit Bharat 2047 presents a huge opportunity for the tyre industry, not only to meet the aspirations of its domestic customer base but also to exponentially scale up tyre exports, especially in the commercial vehicle and passenger vehicle segments across key markets like the US and EU,' Kavan Mukhtyar, Partner and Leader - Automotive at PwC India, said.
Emerging consumer trends and mobility shifts, a dynamic global business environment, and sustainability imperatives present a unique opportunity for the Indian tyre industry to transform itself and drive sustainable growth through 2047, he added.
As per the report, rising economic activity from infrastructure spend and strong domestic consumption will drive OEM and replacement tyre revenue by a 10% CAGR till FY47.
Besides, the export market for Indian tyres is set to expand significantly by FY47, with targeted interventions, it added.
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