Mumbai: India's 2010-11 tyre production is likely to rise to a record 121.4 million units as tyre companies boost capacity to meet booming demand from the local auto industry, a senior industry official said.
“Every (tyre) company is expanding capacity. Demand is good from both OE (original equipment) and replacement segments,” Rajiv Budhraja, director-general of the New-Delhi based Automotive Tyre Manufacturers' Association told Reuters in an interview on Monday.
He said tyre production in 2010-11 is likely to rise by a quarter from last year's 97.13 million units, primarily driven by passenger car and two-wheeler segments at the crest of India's current auto boom
Passenger car sales rose 33.6% on year between April-September this year, data with industry body Society of Indian Automobile Manufacturers (SIAM) showed.
Two wheelers grew 25.86% during April-Sept.
Passenger car tyres production is growing by 25-30%. Demand is very strong in this category. Off the road is also rising by 20-25%, Budhraja said.
Leading tyre makers like MRF Apollo Tyres, JK Tyre & Industries and Ceat have all been furiously working to ramp up capacity. Budhraja estimates an investment of Rs 100-120 billion on expansion in three years to 2011-12.
--Reuters
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