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Old 29th March 2017, 15:59   #1
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Default Revenue-share of Tyre manufacturers in India

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Originally Posted by GTO View Post
Does anyone have market-share figures?
The Market share of Tyre companies in FY15 (based on sales).
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Old 29th March 2017, 16:38   #2
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Default re: Revenue-share of Tyre manufacturers in India

Sree73 - thanks for sharing! This is gold, especially for BHPians who follow numbers closely (including me ).

Copying your post to an independent thread.
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Old 29th March 2017, 16:46   #3
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Default re: Revenue-share of Tyre manufacturers in India

Nice data ! Gives a good and interesting picture there.

Balkrishna tyres with their off-road tyres sell more than Bridgestone ??


Btw, the information is mainly for Indian manufacturers. Any information on sales numbers of the imported tyres ?

Last edited by Rudra Sen : 29th March 2017 at 22:16. Reason: typo - manufacturers
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Old 29th March 2017, 16:51   #4
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Default re: Revenue-share of Tyre manufacturers in India

Balkrishna Tyres cater to vehicles like JCB and Tractors.
Still, It is hard to believe that they sell more than Bridgestone!
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Old 29th March 2017, 18:58   #5
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Default re: Revenue-share of Tyre manufacturers in India

I don't think this is India market share chart. This looks like FY15 revenues chart (inclusive of exports) of tyre companies in India. Two reasons why I think so -

1) There is no mention of imports
2) Balkrishna Industries FY15 revenues were Rs.3,800 crores, but exports constituted 85%. That is, their India revenues were only Rs. 570 crores. There is no way Rs. 570 crores constitutes 7% of Indian tyre market.

Last edited by smartcat : 29th March 2017 at 19:01.
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Old 29th March 2017, 23:17   #6
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Default re: Revenue-share of Tyre manufacturers in India

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Originally Posted by smartcat View Post
I don't think this is India market share chart. This looks like FY15 revenues chart (inclusive of exports) of tyre companies in India.
Yes, You are right. The market share listed above is the Indian tyre industry sales value (including export). Import data is not considered in that chart.
Import data for different types of tyres are available. But, getting that with a break-up of brands will be very difficult.

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Originally Posted by condor View Post
Btw, the information is mainly for Indian manufacturers. Any information on sales numbers of the imported tyres ?
Passenger car tyre data in numbers (including Jeep tyres) for 2014-15 is below.
  • Total Production - 357.43 Lakhs
  • Total Export - 26.54 Lakhs
  • Total Import - 49.37 Lakhs
Passenger car tyre import as % of domestic consumption - 14.92%

Also, below is the 2014-15 break-up of Segment / Product mix of Indian industry.

Sources:
1. ATMA (Automotive Tyre Manufactures Association)
2. ICRA Research Services
3. GOVERNMENT OF INDIA - MINISTRY OF COMMERCE & INDUSTRY
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Last edited by Sree73 : 29th March 2017 at 23:39.
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Old 30th March 2017, 00:47   #7
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Default re: Revenue-share of Tyre manufacturers in India

Guys, I did some research my way -

1) Most of the companies are listed on stock exchanges. We have access to their annual reports where they mention revenues and also their export earnings. All I had to do was subtract their export earnings from FY16 revenues to arrive at their India earnings.

2) MRF, Apollo, Ceat, JK Tyres, TVS Srichakra, Goodyear and Balakrishna Industries are listed. Birla Tyres too is a listed company, but is a part of a company called Kesoram Industries. Note that JK Tyres bought Birla Tyres in FY17.

3) For Yokohama, I just did a Google search for their market share. And multiplied it with total market size. For Bridgestone, I got a news article that said "India contributes just 1% to their overall revenues". So all I had to do was to look at Bridgestone parent company's revenues

4) Total market size is estimated to be Rs. 46,000 crores (OEM + replacement). From a ICICIDirect brokerage report on Indian tyre industry.

Here are the numbers -

MRF - Rs. 11,800 Crores
Apollo - Rs. 6,400 Crores
JK Tyres - Rs. 5,265 crores
Ceat - Rs. 4,550 crores
Birla Tyres - Rs. 2,500 crores
Bridgestone - Rs. 2,166 crores
TVS Srichakara - Rs. 1,700 crores
Goodyear - Rs. 1,600 crores
Yokohama - Rs. 800 crores
Balkrishna - Rs. 540 crores

And here is the pie-chart -

Revenue-share of Tyre manufacturers in India-tyres.jpg

I will see if I can get some more data on tyre industry - like market share of companies in each segment (passenger cars, 2 wheelers, CVs etc)

Last edited by smartcat : 30th March 2017 at 01:13.
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Old 30th March 2017, 01:40   #8
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Default re: Revenue-share of Tyre manufacturers in India

I can't comment on the heavy vehicles and large transport vehicles such as buses and trucks, but the sad state of affairs in the private vehicles "tyre" scene is solely due to the manufacturers - not one of them give a decent tyre in the affordable car segments (<10 lakhs). Seeing that the <10 lakhs segment accounts for a massive share of the pie in terms of overall sales, its shocking that 3 brands literally dominate the charts in terms of sales - MRF, Apollo, and JK, the holy trinity of local tyre brands, none of which grip well, brake well, or make the car handle good. Rumors have it that companies negotiate with these manufacturers for extremely low prices, about Rs.1000-Rs.1500 per tyre.

I've never seen one stock tyre that is good in the affordable cars segment, JK tyres take the cake for peeling off, cracking and caving in within mere thousands of kilometers, a shame. Bridgestone and Goodyears too partake in this supply of tyres straight to manufacturer, again low quality, cheap stuff.

Its about time great brands like Michelin, Yoko/Advans and Continental, are given their due, none of their products are of bad quality and they truly help in making control, mileage and comfort better. Let me also say that Michelin has the most eco-friendly manufacturing process of all, the tyres are vegan-friendly and use natural plant-derived oils, Yokohama is following with the use of orange(fruit)-oils, quality doesn't come cheap.

Hope the consumers protest the manufacturing and default-installation of absolutely horrid tyres which are least eco-friendly as they simply do not last long enough for the amount of work put into them. Hope to see a completely different pie-chart for light passenger vehicle tyres by 2020. Be aware.
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Old 30th March 2017, 10:07   #9
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Default Re: Revenue-share of Tyre manufacturers in India

Quote:
Originally Posted by smartcat View Post
This looks like FY15 revenues chart (inclusive of exports) of tyre companies in India.
Quote:
Originally Posted by Sree73 View Post
The market share listed above is the Indian tyre industry sales value (including export). Import data is not considered in that chart.
You guys are awesome - thank you! Thread title has been corrected.
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Old 30th March 2017, 19:30   #10
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Default Re: Revenue-share of Tyre manufacturers in India

Quote:
Originally Posted by smartcat View Post
Guys, I did some research my way -

I will see if I can get some more data on tyre industry - like market share of companies in each segment (passenger cars, 2 wheelers, CVs etc)
Excellent.
Given the fact that MRF leads the game in 2 wheeler and Apollo is not really in the game, we can safely assume that Apollo is largest seller for 4 wheeler.

Good achievement, given the fact that MSIL prefers JK as the OEM for the new vehicles, which must be contributing a big chunk to JK's sales.
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Old 30th March 2017, 20:55   #11
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Default Re: Revenue-share of Tyre manufacturers in India

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Originally Posted by abhishek46 View Post
Given the fact that MRF leads the game in 2 wheeler and Apollo is not really in the game
Actually, TVS Tyres is the No.1 two wheeler tyre maker with 40 percent plus market share. TVS Motors sources 100% of their requirements from TVS Tyres, Hero Motors 40% of their requirements and Bajaj Auto 35% of their requirements.

TVS has also tied up with Michelin for contract manufacture of high-end bike tyres in India. Looking at margins of TVS Tyres, pretty much every tyre manufacturer has made plans to enter the segment.
http://www.business-standard.com/art...2300457_1.html

Surprisingly, for a low cost product, imports constitute only 3.5% of the sales in the two wheeler segment. This implies India is an extremely low cost producer of two wheeler tyres.

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Originally Posted by dark.knight View Post
its shocking that 3 brands literally dominate the charts in terms of sales - MRF, Apollo, and JK, the holy trinity of local tyre brands, none of which grip well, brake well, or make the car handle good. I've never seen one stock tyre that is good in the affordable cars segment, JK tyres take the cake for peeling off, cracking and caving in within mere thousands of kilometers, a shame.
But isn't this like venting about cheap Marutis, Hyundai, Tatas & Mahindras dominating the car scene? A customer after all has an option of changing tyres immediately after delivery (losing a small amount in the process).

MRF, Apollo, JK & Ceat makes exactly what majority of customers want -

- Low cost
- High Milaze (Ceat has a tyre called CEAT MILAZE. How about that?)
- Long lasting

Quote:
Rumors have it that companies negotiate with these manufacturers for extremely low prices, about Rs.1000-Rs.1500 per tyre.
Impossible. That's just a rumor. OEM business generates 40 to 50% of revenues for all tyre makers. Margins will be lower, sure, but they won't sell at a loss.

Last edited by smartcat : 30th March 2017 at 20:57.
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Old 30th March 2017, 22:57   #12
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Default Re: Revenue-share of Tyre manufacturers in India

Segment wise Tyre production in India FY 2015 - 16
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Revenue-share of Tyre manufacturers in India-tyre_segment_1516_1.jpg  

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Old 31st March 2017, 00:06   #13
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Default Re: Revenue-share of Tyre manufacturers in India

Tyre Export from India - FY 2015-16.
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Last edited by Sree73 : 31st March 2017 at 00:13. Reason: Mods. Please merge this with the previous post
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Old 31st March 2017, 02:04   #14
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Default Re: Revenue-share of Tyre manufacturers in India

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Originally Posted by smartcat View Post
MRF, Apollo, JK & Ceat makes exactly what majority of customers want -

- Low cost
- High Milaze (Ceat has a tyre called CEAT MILAZE. How about that?)
- Long lasting
Partly true, but one look at the JK Tyre section in our forum will show how the tyre cracks, literally into 2 pieces thus exposing the metal reinforcements as well, all within 10k kms of driving.. I spoke to a JK tyre dealer while getting a puncture fixed and he was having tons of stock of swapped JK's that had visible bulges, cracks and deformations, apparently the cabbie community makes do with them at low prices and uses them for 5-10k kms, partly patched up and repaired. A CEAT dealer (another puncture another store) himself suggested that I go with Continentals which was another brand he deals in, he said CEAT is not a seller at all and there was unused stock there going back 2 years. The reason as usual, is bad quality. Companies make massive margins installing cheap tyres, the savings, I highly doubt, is passed to the customer even a fraction.

I don't see a parallel at all, comparing these rock hard tyres to a Hyundai or Maruti, both brands with exceptional reliability, not to mention the part where customers CHOOSE a Maruti or Hyundai, but they have no choice on the type of tyre and 99% of buyers don't have a clue as to what difference a tyre makes to a car, even I was stunned after my first set change. Softer tyres may have more rolling resistance but there is a study that softer, grippy tyres result in less turning, lesser horizontal motion and when added up also result in saving fuel.

There is much wastage when it comes to tyres, most tyres that develop defects after 10k-20k kms do not serve the purpose of their manufacture and can never be used again. Tyres are also amongst the hardest to recycle products (there are millions of them laid to waste in Texas outbacks) and need specialised shredders to grind the rubber into fine pieces which are then mixed into bitumen to lay roads, also the metal extraction need specialized machinery.

But I digress, keeping the topic of the thread in consideration, I only hope that better brands are recognized for their long-lasting, eco-friendly products.. they're here to make money too after all. My post is just a way of trying to convince the masses that there are better products out there.

Last edited by dark.knight : 31st March 2017 at 02:20.
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