The impact of tyre industry revolution on India’s automotive sector

The transportation sector has always been an integral part of India’s economy. The industry has generated opportunities and corresponding revenues with the collective efforts of its branches. Tyre and automotive industries are the premier bifurcations of transport business. The revolution in the tyre sector by business tycoons like Anant Goenka, Onkar Singh Kanwar, and Pawan Kumar Ruia

• and their respective companies, has been directly responsible for making the industry thrive.

Tyres have played a pivotal role in the rise of automation industry in India. Natural rubber is one of the foundational pillars of the tyre industry. The demand-supply curve of its production was not balanced earlier. As a result, rubber manufacturers ruled the market and buyers utilized their bargaining power to its utmost potential.

Pneumatic tyres was the first type ever invented and they were used on a tricycle for testing purposes. However, the advanced version of these tyres gained traction in 1891 because of their tube structure and detachability, which opened new horizons for automobile giants. The manufacturers were earning hefty money through exports. However, in 1926, Dunlop Rubber Ltd became the first company to establish tyre manufacturing in India, followed by MRF.

As the production increased, companies identified multiple opportunities of using tyres in unique ways. For instance- they started using tyre quality as a key feature to market their product. As a result, the tyre industry gained attention and investments started pouring in – the likes of which you can see as different foreign and national players scrambled for a slice of the industry.

The rise of old companies, influx of investments and presence of opportunities created a favorable market for the bloom of tyre industry. As new competitors entered the market, veteran companies like JK Tyre, Ruia Group, etc enhanced the market competition with their acquisitions and operations – making way for a more competitive industry.

With urbanization and machinery, every competitor wanted to be at par with the global standards. The growth of technology substantially increased the production and reduced the elapsed time. As a result, the automobile industry introduced numerous unique automobiles in abundance.

With new inventions and experiments in tyres, the scope of business growth expanded. While cars upgraded their designs to variations of utility vehicles, the 2-wheeler industry gave birth to a new definition of speed, machinery and control with super-fast bikes. Every parameter of tyre manufacturing was subjected to creative ideas and the slightest change in any attribute led to the idea or creation of a different automobile.

On a larger scale, commercial vehicles benefited by the investments and innovations in the industry. Import, export, travel and many other businesses involved trucks and airplanes for transportation, which decreased the transport cost and enhanced the profit margins.

The purview of automotive industry expanded with the foundation of tyre industry’s innovation. Today, India-made tyres are exported to more than 100 countries, where international vehicles are running on these tyres. With green practices and government reforms in the pipeline, the industry is expected to scale great heights by 2020.

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