Favourable growth outlook in the two wheeler market is set to attract Apollo Tyres take a plunge into production and sale of two wheeler tyres in the country.
The company, which has been making tyres for passenger and commercial vehicles, and off-highway segment, is contemplating its foray into two wheeler tyre segment next year.
“We are now exploring options in the two-wheeler segment actively. The company doesn’t have a specific timeline to the launch of two wheeler tyres, but it should be towards end of this fiscal year or latest by beginning of next fiscal year,” the company management has indicated in its interaction with analysts.
Presently, two wheeler tyre market in the country is served by MRF, Ceat, TVS Srichakra, Birla Tyres, Metro Continental and Ralco. It is gathered that MRF is reported to having the largest market share in this segment.
Experts pointed out that competition is not very intense in two wheeler tyre segment as there are only less players when compared with other segments.
The two wheeler industry has posted strong growth in the last 3-4 years amid overall economic slowdown. While bikes posted high single digit growth, scooters have grown by over 20 per cent.
Since OEMs have also grown during this period, the impact will be there on the replacement market in the near future.
Also, there is big customer shift towards scooters, which continue to see their share grow in overall two wheeler business. Amid rural slow down, scooters continue to grow.
Though OEM demand may be subdued now due to some challenges in rural economy, replacement market is expected to be robust and account for 50-60 per cent of two wheeler tyre market.
