Shift in tire needs creates challenges in India

Akron , Ohio –  One tire fits all is becoming passé in India, and that's good for tire makers, according to Vipin Basan, a speaker at the recent International Tire Exhibition & Conference in Akron.

India is a land of extreme climates and road conditions—from tropical heat and monsoon in the south to the bitter cold of the Himalayan north, from modern superhighways to pothole-plagued one-lane roads, said Basan, JK Tyre & Industries Ltd.'s general manager for passenger and light truck tire global product development.

Basan said tire development in India now focuses on specific applications, rather than addressing only regional conditions, during his presentation about the Indian tire industry and radialisation and in comments afterward at ITEC, held Sept. 9-11.

“For example, certain tires are being developed for one type of mining, and other tires for other types of mining,” he said. And while passenger tire radialisation virtually is complete in India, the truck and bus, and light commercial vehicle tire markets have a long way to go.

“Radialisation in truck and bus and LCV is the next major leap forward for the tire industry in India,” Basan said.

Today, estimates show only 32 percent of India's truck/bus tire market is radial and 30 percent of the light commercial vehicles sector.

India's—and in fact the world's—tire makers know this, and are investing heavily in the country. The executive said current or recently completed investments in production capacity and related areas in India totals $4 billion.

“This kind of investment by the tire industry in India is unprecedented in history,” he said. “Almost all the tire companies have invested in setting up new facilities, upgrading their existing facilities and adding manufacturing capacity.”

Besides domestic-based tire makers such as JK Tyre, Apollo Tyres Ltd., MRF Ltd., Ceat Ltd., Balkrishna Industries Ltd., Alliance Tire Group and Birla Tyres Ltd., the oligarchs—Bridgestone Corp., Michelin and Goodyear—have tire production in India.

Estimates are radialization of the truck and bus sector in the subcontinent will reach 45 percent by 2016-17, Basan said, and light commercial vehicles will hit 37 percent. Radials own the new-truck/bus market, accounting for 75 percent of all vehicles. The aftermarket, however, is a different story—just 25 percent.

“The reason for that is the high cost of admission,” he said. Customers fear the initial cost of a radial and don't realize its economic benefits, from fuel economy to retreadability.

“Everyone is working to educate the customer.”