CEAT, a leading tyre manufacturer, aims to increase its domestic market share to 12-13% and reach a topline of
Rs 17,000 crore within the next 2-3 years, according to senior company officials. “Our market share in truck and bus radial (TBR) segment, is currently around 8%. Our immediate milestone is to reach 12-13% share in domestic market, which will take two years,” said Arnab Banerjee, MD & CEO of CEAT.
The RPG Group produced over 48 million tyres in FY24 across segments including 2-3 wheelers, passenger and utility vehicles, commercial vehicles, and off-highway vehicles, generating a total revenue of Rs 11,893 crore. On Wednesday, the company inaugurated a new Truck Bus Radial production line at its Chennai manufacturing plant with an investment of Rs 670 crore. This latest expansion brings CEAT’s total investment in its Tamil Nadu facility to nearly Rs 3,000 crore, following an earlier Rs 2,300 crore investment.
The new production line is expected to reach a capacity of 1,500 tyres per day within the next 12 months, with a significant portion of the plant’s output focused on exports to Europe and the US.
Banerjee said that the growth in the TBR segment will be driven by increased market share in the tyre replacement market and tie=ups with new original equipment manufacturers (OEM). “We will gain a larger share with OEMs like Daimler, Ashok Leyland, and Tata Motors,” he added.
However, Banerjee noted that it’s difficult to pass on the entire cost increase to customers in a competitive market. “In some segments like TBR, we havve implemented a 4-5% price hike. A further increase may come in September. As a result, he said, there will be margin pressure in Q2 & Q3, but expects rubber availability to improve further, which could bring prices below Rs 200 per kg.
Jayasankar Kuruppal, Senior Vice President – Manufacturing, CEAT, shared that the company is planning to achieve a topline of Rs 17,000 crore in the next 2-3 years.
