Agent JK Tires

CHINA TYRE DEMAND JK Tyres Chairman and Managing Director Raghupati Singhania said the domestic market is expected to remain strong as the automotive sector continues to hit new highs amid a positive economic environment. Strong Gross Domestic Product (GDP) The government’s focus on infrastructure development is expected to boost growth in the automotive and tire sectors, a senior industry leader said in an ongoing interview with PTI.

He said, “We believe that domestic demand will continue to be strong due to good macroeconomic factors, infrastructure investments and overall favorable economic environment.”

Explaining some of the positives, Singhania said that freight traffic has remained stable, favoring the commercial vehicle segment.

He also pointed out that strong GDP growth and more disposable income have helped increase vehicle purchases.

Singhania said, “As a result, we expect demand for cars and tires to increase.”

He said more and more people want to travel by road and various high quality roads have come up in the last 18 to 20 months.

Singhania said, “This will open up new uses for cars, especially tire consumption.”

On JK Tires, he said that the company, a leader in midday tires for trucks and buses, will continue to focus on this segment.

“However, we will be focusing more on passenger car radials (PCR), he added, as there is more scope for growth in the segment.

Singhania said the company’s revenues have been growing steadily over the past few quarters and he expects this growth momentum to continue.

The company’s consolidated net profit rose five-fold to Rs 2.49 billion in the second quarter, driven by strong performance in the domestic market.

JK Tire plans to increase its tire capacity by 20% by 2025 as demand is expected to remain strong.

Currently, the company produces 3500 production of 35 million tires per year.

“The expansion will be primarily for PCR but will cover other areas as well. We expect the full commissioning of the project to take around two years,” Singhania said.

In terms of channel building, the company added that it is bridging the gap by increasing the number of directly operated stores to enhance the brand presence and penetrate deeper into the domestic market.