Over the last decade, the agency has significantly increased the capacity of the tire industry with a cumulative expenditure of about 2780 About 70% of the rupees is billion rupees, which it has spent in the last six years.

Credit rating agency Icra said in a report on Monday that the Indian tire industry is likely to grow by 7% to 9% in the next five years on the back of a positive outlook for the domestic automobile industry.

In its report, Icra also predicted that the industry will spend around Rs 2,000 crore on capital expenditure during this period. /p In addition, the domestic tire industry’s margins declined by 120 basis points in September compared to the same month last year, but are expected to improve and stabilize prices in the second half of this year due to lower crude oil prices. “This is thanks to the favorable outlook for the domestic automotive industry,” he said. Iqra said, “Demand for tires is expected to increase by 7-9% over the next five years (2019-233) fiscal year).”

The rating agency also said it has a stable outlook for the Indian tire industry.

Icra said that capitalization and coverage metrics of industry players are expected to remain stable through debt financing and liquidity provisions, driven by stable margins and healthy cash reserves of most of the players, amidst ongoing investments to increase production capacity. Report.

According to the industry report, the domestic automotive industry is currently ranked fourth in the world and is expected to grow to third by 2021.

The industry, including component manufacturing, is expected to reach a CAGR growth of 5.9, reaching $25.14 billion to $282.8 billion by 2026 yr, the report said.

Icra noted that the domestic tire industry started with original equipment (OE) and benefited from the replacement equipment segment in the current fiscal.

According to the industry report, the domestic automotive industry is currently ranked fourth in the world and is expected to jump to the third position by 2021.

According to the industry (including parts) report, manufacturing) is expected to grow at a CAGR of 5.9% to reach $25.14 billion to $282.8 billion by 2026 becoming the fastest growing industry in the US.

“Despite some unfavorable factors such as Kerala floods, lack of financing, changes in insurance-related laws and regulations affecting the demand for two-wheelers (2W), rising fuel and interest costs, due to strong year-on-year, OEMs He said that the healthy demand for tires year (year-to-date) sales growth.

Tire replacement demand, particularly in the truck and bus industry, also recovered sharply last year due to the aftermath of products and services, the report said. Demand was boosted by activity and wellness spending.

In addition, tire exports have also seen steady growth over the past year as demand for tires in overseas markets has recovered. Indian tire manufacturers are becoming more competitive in terms of quality and price, Iqra said.

The domestic tire industry has grown significantly in capacity over the last decade, with a cumulative outlay of about Rs 278 billion, of which about 70% has been spent in the last six years.