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Equity Markets and Tyre Stocks

Now that the automobile industry in India and in other countries is out of the shadows of the pandemic, the increasing demand for vehicles in all segments is simultaneously creating a demand for tyres. Also, accounting for the fact that Indian-make tyres are considered top quality around the world, the tyre industry is confident of surging ahead with expansion and growth

Since the success of the automobile industry is crucial to both economic growth and technological advancement, it has historically been a reliable barometer of how the Indian economy is performing. The industry accounts for about 6 per cent of Indian GDP and 35 per cent of manufacturing GDP. India is the world’s leading manufacturer of tractors, the second-biggest manufacturer of buses and the third-largest producer of heavy trucks, giving it a significant position in the global heavy vehicle market. By 2030, sales of electric vehicles (EVs) are anticipated to reach 10 million units annually, growing the EV market at a CAGR of 49 per cent between 2022 and 2030.