This is the motto of tyre consumers in India as 3/4th of tyres sold in India are Indian!!!
Digest this: In this age of foreign brands and FDI, 74% of the Rs.190 billion Indian tyre industry is dominated by four big ‘homegrown’ players! ‘Homegrown’ is the word! Leading the race is MRF with a thumping market share of 22%. It is closely followed by Apollo Tyres, JK Tyres and Ceat (with a 21%, 18% and 13% market share). This is very unlike the complementary automobile industry where global names rule the roost. This however was not always the case. Till the late 1960s, players like Dunlop (UK), Firestone (USA) and Goodyear (USA) with vast R&D expertise dominated the tyre industry in India. However, protectionist policies of the government forced these MNCs to pull out, and that’s where the indigenous players struck hard. So will the international giants always remain ‘Also-rans’?
Well, at least when contrasted in the current scenario, it becomes obvious that the Indian tyre makers are not willing to loosen their grip on the roads! Even the targets & investments from the global giants appeared too conservative in a growing market as an auto analyst explains, “In their second stint, a lot of time the global tyre companies came to India with small targets and concentrated only on niche, high-end segment.”
Digest this: In this age of foreign brands and FDI, 74% of the Rs.190 billion Indian tyre industry is dominated by four big ‘homegrown’ players! ‘Homegrown’ is the word! Leading the race is MRF with a thumping market share of 22%. It is closely followed by Apollo Tyres, JK Tyres and Ceat (with a 21%, 18% and 13% market share). This is very unlike the complementary automobile industry where global names rule the roost. This however was not always the case. Till the late 1960s, players like Dunlop (UK), Firestone (USA) and Goodyear (USA) with vast R&D expertise dominated the tyre industry in India. However, protectionist policies of the government forced these MNCs to pull out, and that’s where the indigenous players struck hard. So will the international giants always remain ‘Also-rans’?
Well, at least when contrasted in the current scenario, it becomes obvious that the Indian tyre makers are not willing to loosen their grip on the roads! Even the targets & investments from the global giants appeared too conservative in a growing market as an auto analyst explains, “In their second stint, a lot of time the global tyre companies came to India with small targets and concentrated only on niche, high-end segment.”
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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