Case Study -Tyre - Tài liệu tham khảo | Đại học Hoa Sen

_______________________ Tyre Maharajahs Case Study _______________________
TYRE MAHARAJAHS AGAINST CHINESE EXPORTERS
AND TYRE GLOBAL MAKERS.
THE STRUGGLE FOR LEADERSHIP IN THE INDIAN TYRE INDUSTRY
The Tyre Industry in India: Growth, Trends and Technologies
“The Indian tyre industry is emerging as a
Even for large Indian companies that have
force to reckon within the global tyre
expanded their operations abroad, they
manufacturing ecosystem […]. The industry
remain greatly dependent on the Indian
has undergone a metamorphosis of sorts in
market for their turnover, growth and
the last few years and has received global
profitability. Their home country remains
recognition too […]. As a fast developing
their so-called “cash cow” market.
nation, being the fastest growing economy in
Among these uncertainties and risks looming
the world, India offers immense potential for
over the Indian tyre industry, we can first
the growth of the tyre industry”(Anant
highlight the variations in the raw material
Goenka’s interview, CEO of CEAT and
prices. Tyre inputs, such as natural and
Chairman of the Indian Automotive Tyre
synthetic rubber and crude oil, have become Manufacturers’ Association - ATMA)1.
more expensive due to their cyclical price
Indeed, in a 10-year period, the Indian tyre
increase, the depreciation of the Rupee and
production has increased from 80 to 180
the 25% customs duty imposed on imports by
million units; in the meantime, Indian tyre
the Indian government5. Moreover, some tyre
companies have thrived investing heavily
manufacturing facilities cannot operate at
abroad and exporting annually Rs. 100,000
full scale as they are short of supply due to
million (US$ 1.5 billion). As a result, four
bad crop of natural rubber in India6.
Indian tyre companies are ranked among the
top 30 global tyre makers by turnover2. For
Second, the Indian tyre industry is
the coming years, India’s GDP is predicted to
confronted with tough competition from
grow at a pace of 7.4%, ahead of other
imported Chinese tyres, which are on
emerging economies. It would surpass China
average 50% cheaper than domestic
by 1% while other BRICS economies would
products7. The Indian government has
stick to growth rate ranging from 1 to 2%3. In
recurrently imposed some tariff and non-
the automotive industry, the Society of
tariff barriers to imported tyres with the aim
Indian Automotive Manufacturers (SIAM)
to reducing the attractiveness of low-cost
expects that the production will increase by
foreign products, such as in September 2017
3.5 to 4 times from 2016 to 20264. Boosted
and September 20188. But these measures
by this strong momentum, the tyre industry
have only partly deterred price-sensitive
plans on growing from Rs. 550,000 (US$ 8
Indian customers from buying imported
billion) to 2,000,000 million (US$ 30 products. billion).
Third, a series of Indian government
Although India will experience high or
initiatives have been launched with mixed
hyper-growth, uncertainties and risks will
and unforeseeable consequences. In July
also rise in such a fast pace that tyre
2017, the Indian government enforced a
companies could see their return on
consumption tax known as the GST (Goods
investment dented and their growth thwarted.
and Services Tax). This tax enforcement has
This case study was written by Dr. Alexandre Bohas (Professor at ESSCA Business School) and Dr. Pierre-Xavier
Meschi (Professor at IAE, Aix-Marseille Université). It is intended as an illustration to be used in class discussions.
The authors gratefully acknowledge Michelin’s irreplaceable cooperation in providing them complete access to world
tyre industry data. They wish to thank in particular: Thierry Anglade (Michelin’s Corporate Development & Progress
manager) and Frédéric-Patrice Vincent (Michelin’s Vice-President Strategy & Development).
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_______________________ Tyre Maharajahs Case Study _______________________
made it harder for low-cost imported tyres to
Fourth, recent rising protectionism from the
enter the domestic market. These imported
US government under the initiative of
tyres can no longer circumvent GST by
President Donald Trump threatens the Indian
making cash deals. Along the same lines, the
tyre industry: (i) directly, with the
demonetization regulation, which led to
enforcement of anti-dumping measures
withdrawal of Rs. 500 and 1,000 bank notes,
against tyre imports from emerging
has also caused a drop in massive imports by
economies, including India. These measures
diminishing excessive cash in the economic
represent a major threat, as the US is the first
system9. All these government measures
export country for Indian tyre makers
have triggered destocking behavior from tyre
(especially, for JK Tyre, the third largest tyre
dealers and garages. Besides, environmental
maker in India). (ii) Indirectly, with the trade
and sustainable development concerns have
war currently occurring between the US and
raised pressures to curb air pollution. Since
China. This war could have adverse side
2000, Bharat Stage (BS) emission standards,
effects for Indian tyre makers since a
inspired from European “Euro” regulations,
decrease in Chinese tyres exports to the US
have been progressively imposed on all
would mean an additional flow of discounted
motor vehicles. The BS-IV grade was
Chinese tyres diverted to India.
enforced for the whole country since April All these headwinds increase the
2017. Faced with increased air pollution, the
uncertainties and risks for the Indian tyre
Indian government has decided to skip BS-V
makers, which explain the sharp decrease in
and looked forward to implementing BS-VI
stock prices for leading players such as
in the short term10. The acceleration in
Apollo Tyres and JK Tyre (see Figure 1) and,
enforcing environmental norms comes along
to a lesser extent, MRF, in 2018.
with the increase in the price of cars and gas.
Figure 1 – Stock Market Price Variations in 2018 (in Rs., Apollo Tyres and JK Tyre) 300 275 250 225 200 175 Apollo Tyres 150 8 8 8 8 8 8 8 8 8 8 8 8 -1 -1 -1 l-1 -1 -1 -1 ar-1 r-1 p n g ct-1 v ec-1 Jan eb ay-1 u ep o F Ju M A M Ju A S O N D 200 180 160 140 120 100 JK Tyre 80 8 8 8 8 8 8 8 8 8 8 8 8 -1 -1 -1 -1 -1 -1 ar-1 r-1 l-1 p n g ct-1 v Jan eb ay-1 u ep o ec-1 F M A Ju M Ju A S O N D
Source: stock market prices for Apollo Tyres and JK Tyre are
available on the website: https://in.finance.yahoo.com/quote,
accessed on December 20, 2018.
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_______________________ Tyre Maharajahs Case Study _______________________
As regards technologies used for making
textile and metal steel cords are braided
tyres, one can distinguish two types,
radially or at 90° (see Figure 2). The radial
corresponding to the tyre body construction
tyre has gradually imposed itself in
and the combination of textile and metal steel
developed countries with the increased
cords (see Figure 2), namely, “diagonal” or
performance of cars and trucks. With soft
cross-ply technology, and “radial” or radial-
sidewalls, the radial tyre has better adhesion
ply technology. In the cross-ply technology
and greater resistance to torsion than the
(created in 1950), the textile and metal steel
cross-ply one. The imprint of the tyre is
cords are braided diagonally on the external
wider and the pressure is more equally
surface of the tyre. In the radial technology
distributed over the crowns of the tyre, which
(patented on June 4, 1946 by Michelin), the insure better tread wear.
Figure 1 – Radial and Cross-Ply (“Diagonal”) Tyre Technologies
Source: https://otrwheel.com/otr-blog/radial-vs-bias-need-know/ (accessed on December 17, 2018).
In India, 65% of tyre sales are cross-ply (or
the passenger vehicle tyre segment (see
“diagonal”). This situation is explained by Table 1).
different factors inherent to Indian road
A later-than-expected and steady process of
infrastructures and consumer behaviour,
“radialization” has taken place for a few
which can observed in most emerging
years. Road infrastructures have improved
economies: the very unequal quality of the
and cheap radial tyre imports from China
road infrastructure, the tendency to overload
have explained the switch to radial tyre, in
vehicles and the cheaper buying-in price of
particular in M&HCV tyres. In this segment,
cross-ply tyres. Moreover, in rough
between 2008 and 2018, the ratio of radial
conditions where tyre is easily punctured, the
tyres in the market has risen from 4 to 45%
cross-ply tyre can have longer life-time than
(see Table 1). Another reason is that radial
radial tyre although, by mileage’s standards,
tyres have a lower rolling resistance than
the latter lasts longer. However, cross-ply
cross-ply tyres in a country where air
tyre has poor road-holding at high speed and,
pollution has become an important concern
when it is subjected to high torsion, there are
among public authorities. Due to its
strong risks of it coming off the rim or
construction specificities, the crown and
blowing out. These various factors explain
sidewalls of radial tyres can be composed
that cross-ply tyres still represent the
differently, which brings about better
majority sales in most segments, excluding
performance in rolling-resistance.
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_______________________ Tyre Maharajahs Case Study _______________________
In the other tyre segments, the “radialization”
two- and three-wheeler tyre segment (see
process is more contrasted. The market
Table 1). This can be related to the
transformation in favor of radial technology
customer’s price sensitiveness and the
is almost achieved in the passenger car tyre difference in tyre use.
segment while it has almost not started in the
Table 1 – Tyre Market “Radialization” in India
Radial tyre market share (in volume) 1995 2008 2018 Passenger vehicle 28% 95% 98%
Light commercial vehicle (LCV) 9% 12% 40%
Medium & high commercial vehicle (M&HCV) 1% 4% 45%
Two- and three-wheeler (motorcycle, scooter and “tuk-tuk”) 0% 0% 1.5%
Source: (i) Michelin in the Land of the Maharajahs (A): Note on the Tire Industry in India (Case Study, Ivey
Publishing, Ivey Business School, 9B07M030). (ii) ATMA (2017b) ATMA Review. Indian Automobile Industry,
FY2016-17 (Apr-Dec), ATMA Periodicals (http://www.mohitnarang.in/atma/wp-content/uploads/2018/03/Atma-
Periodicals_17-4-17.pdf, accessed on December 6, 2018). (iii) FY2018 Apollo Tyres’ annual reports
(https://corporate.apollotyres.com/en-in/investors/financial-reporting/, accessed on December 1, 2018).
The Tyre Industry in India: Markets and Products
New tyre distribution corresponds to three
better tyre mileage and improved road
main channels in India. First, tyres are
infrastructure. It is also much more uncertain
directly sold to carmakers through a
since it annually varies according to tyre
business-to-business channel, also known as imports.
OEM (Original Equipment Manufacturers)
The OEM market consists of the major
(see Figure 3). Second, the replacement
Indian and non-Indian carmakers. The main
market takes place once the tyres get worn-
tyre buyers are presented below:
out or punctured. It consists of garages and
tyre dealers, including small retailers and
In the passenger vehicle market,
large distribution networks. Third, tyres
Maruti Suzuki (Maruti Udyog group) is
produced by the Indian tyre industry are
India’s oldest and largest carmaker. Owned
exported abroad. In 2018, unit sales are
by the Japanese Suzuki and the Indian
broken down across these three markets as
State, it detains a 47% share of the
follows: 43% for OEM market, 51% for
passenger vehicle market13. Although it has
replacement market and 6% for export
lost some market share since 2005 (51%), it
market11. This sales breakdown is distinct
remains the dominant player with 1.3
from that observed worldwide: 25-30% for
million cars sold in 2016. Its closest
OEM market and 70-75% the replacement
competitor is Hyundai whose market share
market. This is specific to emerging is only 17%.
economies where the level of household
In the commercial vehicle market,
equipment, still low, is booming by high
Tata Motors (Tata group) is the market
growth. It is worth mentioning that
leader with a 55% market share14. It started
penetration of passenger vehicles is below 20
to build cars in 1954 in partnership with
per 1,000 people in India compared to 786 in
Daimler Benz. Its closest competitor is
the US12. But, in value, the market is skewed
Ashok Leyland with a 31% market share.
toward the replacement segments which
While Tata Motors has balanced sales
account for 70% of total sales. In the coming
across the commercial vehicle market,
years, the considerable OEM distribution
Ashok Leyland is more focused on
channel will not only maintain but may
commercial vehicles ranging from 12 to
strengthen its position since it is nurtured by 16.2 tons.
the structural growth of customer’s original
As regards two- and three-wheelers,
equipment. The replacement market for the
the segment is highly concentrated around
tyre industry is much less dynamic due to
the following players: Hero Moto (32%),
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_______________________ Tyre Maharajahs Case Study _______________________
Honda (24%), Bajaj (18%) and TVS
and tyre dealers. Some are exclusive
(14%)15. It is worth noting that these
(franchised or not) distributors, while others
companies have crossed the 20 million unit
are multi-brand. The trend is towards vertical
sales in 201816 . Among them, the Hero
integration of distribution and development
Moto, formerly linked with Honda until
of online distribution by tyre makers. This is
2010, is the world largest two-wheeler
notably the case for JK Tyre, with the maker.
development of “JK Tyre Steel Wheels,” and
As regards tractors and agriculture
for CEAT, with “CEAT Shoppes.” In the
vehicles, OEM in India forms the world’s
replacement market, the price of tyres is a
largest industry in this domain. It is
priority purchase criterion for customers,
dominated by Mahindra Motors with more
particularly for those who have a motorcycle,
than a quarter of market share, TAFE
a scooter or a three-wheeler (“tuk-tuk”).
(19%), which produces and sells under its
At the other end of this capital-intensive
brand name and Massey Ferguson brand,
industry, 60 to 65% of sales are devoted on
and Swaraj (16%), part of Mahindra group
average to raw material cost (or input cost) since 200717. whereas SG&A (sales, general &
Various foreign carmakers such as
administration) and personnel cost amounts
Toyota, Ford and Nissan have entered the
to 13 to 26% of sales (see Figure 5).
Indian automotive industry to reach the
Nevertheless, these average input costs can
consumer markets but also as a basis for
hide wide differences across Indian tyre
export in Asia. Nissan dedicates 73% of its makers (see following section on
vehicles manufactured in India to export;
competitors). In addition, as illustrated in
Ford 58%. In stark contrast, the Indian
Figure 5, the price of raw materials tends to
commercial vehicle industry exports 10%
cyclically change according to stock
of its production while 19% of passenger
speculations, political contexts but also
vehicle production is exported.
economic dynamics linked to each raw
As their major customers are heavily
material industry. In addition to this, Indian
concentrated in competitive segments, these
companies are faced with specific issues of
OEMs have obtained large price cuts from
import tax on raw materials from the Indian
suppliers such as tyre companies while these
government. Consequently, the major
latter have been unable to pass on higher raw
challenge for this industry is to reach
material prices, fearing market share losses.
profitability despite the ups-and-downs of
the supply market and its dependence on
As regards the replacement market, it large customers.
consists of thousands of independent garages
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_______________________ Tyre Maharajahs Case Study _______________________
Figure 3 – Vehicle Production in India (2013-2018) 30 25 20 its n u n 15 illio M 10 5 0 Passenger vehicles Commercial Three wheelers Two wheelers Grand total vehicles 2012-13 2014-15 2017-18
Source: Society of Indian Automobiles Manufacturers (SIAM), 2018
(http://www.siamindia.com/uploads/filemanager/47AUTOMOTIVEMISSIONPLAN.pdf, accessed on December 3, 2018).
Figure 4 – Tyre Cost Structure in India Margin and depreciation 9-22% Natural rubber cost Personnel cost 23-26% 7-14% SG&A cost 6-12% Synthetic rubber cost 10-13% Other raw material costs 16-20% Other crude derivative cost 16-20%
Source: Alphà Invesco, Understanding the Indian tyre industry, key players and the road ahead, 2018
(https://www.alphainvesco.com/blog/understanding-the-indian-tyre-industry/, accessed on December 16, 2018).
As Indian customers are highly price-
Apollo Tyres and CEAT) have tried to team
sensitive, they are attracted by tyres imported
up with Chinese tyre makers in order to
at low prices from China. These imported
jointly produce radial tyres and match the
tyres have an average price that is 30% lower
lower-priced imported Chinese tyres.
than tyres sold by Indian companies.
Tyre exports have reached Rs. 100 million in
Besides, some Indian companies (JK Tyre,
2017. Recording a 20% increase, the US has
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_______________________ Tyre Maharajahs Case Study _______________________
emerged as the biggest market for Indian
companies are also present in other emerging
tyres exports. The US market has imported
economies in Latin America, South-East
28 million tyres from India, accounting for
Asia, the Middle East and Africa.
15% of all Indian exports18. Indian tyre
Figure 5 – Variations in Input Costs
(Brent Crude Oil, Carbon Black, Natural Rubber and Synthetic Rubber Costs)
Source: from top left to bottom right, brent crude oil, carbon black, natural rubber and synthetic rubber. (i) For
synthetic rubber, crude oil and carbon black, Federal Reserve Economic, monthly, not seasonally adjusted. (ii) For
synthetic rubber, Data index Jun 1981=100. (iii) For carbon black Dec. 1983=100. All data available on the
website: https://fred.stlouisfed.org, accessed on December 16, 2018. (iv) For natural rubber, US Dollar per
kilogram, monthly, not seasonally adjusted (www.indexmundi.com, accessed on December 16, 2018).
Figure 6 – Breakdown of Market Sales and Volume by Tyre Segment (FY2016) VOLUME SALES Others 54% Truck & bus 1% 5% Farm Passenger vehicle 14% 5% LCV 2- and 3-wheeler 13% 13% Truck & bus LCV 9% 23% Passenger vehicle Farm 8% 54% 2- and 3-wheeler 2% Others
Source: ATMA (2017b) ATMA Review. Indian Automobile Industry, FY2016-17 (Apr-Dec), ATMA Periodicals
(http://www.mohitnarang.in/atma/wp-content/uploads/2018/03/Atma-Periodicals_17-4-17.pdf, accessed on December 6, 2018).
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_______________________ Tyre Maharajahs Case Study _______________________
Table 2 – Breakdown of Tyre Sales in India by Market and Product (FY2017, in volume) Passenger vehicle
Medium & high commercial vehicle (M&HCV) OEM Replacement Export OEM Replacement Export Volume 43% 51% 6% 15% 71% 14% Two- and three-wheeler
Light commercial vehicle (LCV) OEM Replacement Export OEM Replacement Export Volume 51% 47% 2% 27% 53% 20%
Source: (i) Michelin’s Internal Data on the World Tyre Market (2018). (ii) ATMA (2017b) ATMA Review. Indian Automobile
Industry, FY2016-17 (Apr-Dec), ATMA Periodicals, available on the webpage: http://www.mohitnarang.in/atma/wp-
content/uploads/2018/03/Atma-Periodicals_17-4-17.pdf, accessed December 6, 2018).
These three markets (OEM, replacement and
Passenger vehicle (or car) tyre sales represent
export markets) concern several lines of
14% of total tyre sales by volume and around
products: M&HCV tyres (mainly bus and
23% by value (see Figure 6). This difference
truck tyres), car tyres, two- and three-wheeler
is explained by the increase in car
tyres, LCV tyres (see Table 2).
performance, the development of the radial
tyre and the emergence of strong brands in
In the fiscal year 2015-16 (or FY2016),
the Indian market. In the coming years, both
commercial vehicle tyres accounted for 18%
replacement and OEM markets are expected
of all tyres sold in India while their sales
to grow annually in line of years 2015-17, at
constitute 63% of the revenue (see Figure 6).
a pace above 5% (Michelin’s Internal Data
This is explained not only by the cost
on the World Tyre Market, 2018). OEM
production but also by truck driver’s and
market will lead the way as passenger vehicle
fleet manager’s business needs. They
market is forecast to grow yearly at 10%
demand a robust tyre at a good price, rate20.
withholding the load all the way. They have
been led to think in terms of cost per
In stark contrast to the commercial vehicle
kilometre rather than the tyre buy-in cost,
tyre segment, two- and three-wheeler tyres
which prompts them to include the tyre
represent 54% of all tyres sold in India
mileage and retreading in their cost
whereas its forms 13% of sales (see Figure
calculation. Furthermore, some sense of
6). There is strong competition in this
relationship between the tyre and fuel
segment, with a strong focus of customers on
consumption has grown since several years.
price, which results for tyre makers in regular
From this point of view, the radial tyre is
drops in prices and margins. Due to its
much more economical than the cross-ply
affordability and low maintenance cost, this
tyre. From the tyre industry’s standpoint, all
means of transport should grow at a faster
these factors mean at best a stagnant demand,
pace than passenger vehicle. As this tyre
which has even decreased in the years 2015-
market is quasi-exclusively made up of
2017, especially in the replacement segment
cross-ply tyres, it is sheltered from Chinese
(Michelin’s Internal Data on the World Tyre imports. Consequently, the domestic
Market, 2018). The only increasing market
industry will fully benefit from this demand,
will be the OEM, driven by commercial
which explains that all major tyre companies
vehicle sales, which are correlated with the
have lately invested this segment 21. GDP growth19.
The Tyre Industry in India: Market Shares and Competition
In FY2018, the Indian tyre market
locally 60 manufacturing facilities along
amounted to approximately Rs. 595,000 with dozen of importers (mostly
million. This market is made up of 39
Chinese). However, four Indian tyre
Indian and foreign companies operating makers alone MRF (leader), Apollo
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_______________________ Tyre Maharajahs Case Study _______________________ Tyres, JK Tyre and CEAT stand out
industry concentration is even stronger,
with cumulated sales accounting for
especially in the commercial tyre segment
around 65% of the entire tyre market (see (see Table 3).
Figure 7). In terms of volume, the
Figure 7 – Market Shares (in Value) of Tyre Makers in India (FY2018) MRF 24% Others 35% Apollo Tyres 18% CEAT 11% JK Tyre 12%
Nota Bene: we estimated the market shares of tyre makers in this figure by dividing their respective
FY2018 total sales (minus foreign sales) by the FY2018 total value of the Indian tyre market
(amounting to approximately Rs. 595,000 million).
Table 3 – Market Shares (in Volume) by Product (FY2018) Passenger Commercial Tyre maker vehicle vehicle MRF 10.9% (leader) 21.5% Apollo Tyres 8.9% 24.9% (leader) JK Tyre 6.0% 20.1% Other Indian tyre makers 33.4% 22.2% Global tyre makers* 32.6% 7.0% Chinese exporters** 3.9% 4.3% Other Asian exporters*** 4.3% -
* Cumulated market shares of the five world’s largest tyre makers
(Bridgestone, Goodyear, Michelin, Continental and Pirelli).
** This category also includes Taiwanese tyre makers such as Maxxis.
*** Cumulated market shares of Hankook (South Korea), Nexen (South
Korea), Kumho (South Korea), GITI (Singapore), Toyo (Japan),
Sumitomo (Japan) and Yokohama (Japan).
Source : Michelin’s Internal Data on the World Tyre Market (2018).
Despite a growing tyre market, several
commercial vehicle radial and two- and
incumbents have recently encountered
three-wheeler tyres), to JK Tyre on April
tougher competitive conditions and 2016.
subsequently faced financial distress,
Many factors may explain the difficulties
leading to company restructuring and
faced by some Indian tyre makers,
industry consolidation: for instance,
especially in the commercial vehicle
Falcon Tyres, a full-range tyre maker,
radial tyre and passenger car radial tyre
filed for bankruptcy in 2017 and Birla
segments (see developments in the
Tyres, a highly indebted tyre maker, sold
introductory section) but the aggressive
off one of its subsidiaries, Cavendish
pricing of Chinese and Taiwanese
Industries (specialized in manufacturing
exporters (Maxxis, Shandong Linglong
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_______________________ Tyre Maharajahs Case Study _______________________
yre and Hangzhou Zhongce Rubber) in
CAGR) during the same period22. On
the replacement market seems to be a key
September 2018, the Indian government
destabilizing factor. Chinese tyre makers
responded to this trend by imposing
started exporting commercial vehicle
another set of customs duties (15%) on
radial tyres for the OEM market at the end
imported passenger car radial tyres.
of the 1990s, as the local capacity was not These higher customs duties will
sufficient to fulfil the Indian truck
probably lead Chinese exporters to
makers’ needs. Over time, Indian truck
modify their Indian market strategy and makers considerably reduced their
to favor equity entry modes over exports.
Chinese tyre purchase, as they were not
A good illustration is the recent
satisfied with the tyre quality. Chinese
greenfield investment decision made by
exporters have redirected their sales to
one of the world’s largest two-wheeler
the replacement market where end
tyre maker, the Taiwan-based Maxxis
customers are more sensitive to tyre
group. Targeting 15% (in volume) of the
price. Today, they grab a record 14.9%
Indian two- and three-wheeler tyre
share for commercial vehicle radial tyres
segment in five years, Maxxis has locally
sold to the replacement market (see Table
set up a manufacturing facility with a 4).
yearly capacity of 7.3 million tyres in
Consequently, Indian tyre makers have March 2018.
lobbied their government to increase
Facing with these threats, Indian tyre
customs duties on tyre imports. In
makers are currently reviewing their
September 2017, the Indian government
competitive strategy and pursuing new
took a first step against Chinese imports,
directions for growth: (i) extending their
known as the Anti-Dumping Duty
product range and striving to become full-
(ADD): customs duties on commercial
range tyre makers, (ii) expanding abroad,
vehicle radial tyres imported from China
especially in emerging economies, and
and Taiwan rose from 10 to 15%. Over
(iii) developing their online distribution.
time, the ADD enforcement has had
As regards this last growth direction,
opposite impacts on the Indian tyre
Indian tyre makers have devised distinct
market: on one side, it has led to slowing
online distribution strategies: some tyre
down the flows of imported Chinese
makers sell tyres on their own e-
commercial vehicle radial tyres in India
commerce website (Bridgestone India,
but on the other side, it has diverted these
GoodYear India, Michelin India, MRF
flows to the passenger vehicle radial tyre
and Apollo Tyres) while others favor
segment. While total tyre imports have
independent and specialized websites
risen by 6.1% (compound average growth
such as tyres.cardekho.com or consumer
rate, CAGR) between FY2015 and goods shopping websites such as
FY2018, imported passenger car radial Snapdeal or Flipkart.
tyres have grown at a faster pace (12.7%
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