CEAT Ltd is looking to profit from the growth from tire maker Arnabbbb Banerjee, Arnab Banerjee, managing director and CEO of the company He said passenger car sales in India will boost demand in alternative markets in the future. The company is also poised to enter the U.S. passenger vehicle (PV) truck and bus radial (TBR) tire market in the first quarter of the next fiscal year, focusing on leveraging its international presence as a growth engine.

This means that 40 million vehicles will translate into immediate replacement demand over the next two to three years,” said Banerjeeb. Therefore, the trajectory of OEMs bodes well for the replacement market,” the company told PTI.

He was responding to a question on the impact of growing PV sales in India on tire manufacturers.

In 2023, Indian passenger vehicle sales hit a record high of 4.108 million units, up 8.3% year-on-year, with SUVs accounting for almost half of total manufacturer-to-distributor shipments.

Banerjee said, “What is more interesting is that our share in the alternative market is growing slightly, not dramatically.”

We want the growing passenger car and utility vehicle (PCUV) segment to lead the market. ‘

He added that two trends, electrification and premiumization, also bode well for tire manufacturers.

“Half of the cars (passenger cars sold) are SUVs. tires are bigger and more profitable. We can increase profits. We are very optimistic about passenger car tires. We invest heavily in R&D and production. Yes. (PV) For the tire industry in general and CEAT in particular, the market is growing which is good news,” Banerjee said.

He said, “The passenger car tire segment could be the growth engine for the company in the next two to three years as compared to the domestic market for trucks, buses lunch tires and two-wheeler tires.” The same is true for the international market.

“We are very small in the international market, but our market is small, so there is a lot of room for growth,” he said.

On overseas expansion plans, Banerjee “We plan to start operations in the US in the first quarter,” he said. So that will be CEATT. overall sales growth plays an important role. We will be launching PCUV. and TBR, so soon we will be launching three categories in the US.

Asked about the outlook for the rest of the fiscal year, he said, “We expect the replacement market to be better in February and especially in March. January is a slow month because of the winter.”

In terms of categories, he said, “We plan to continue to grow market share in the passenger car category. As we continue to get approvals, OEMs will certainly do better in the fourth quarter.”

As for international markets, he said Europe is facing headwinds from the recession.