Tyre major MRF is betting big on export markets and electric vehicle segment to boost its sales volume.
The company said exports during FY23 were muted due to unexpected headwinds seen in key markets of Indonesia (due to the sudden suspension of quotas by the ministry of trade and industry since September 2022) and Bangladesh (unprecedented forex crisis since August 2022) and a few countries of Africa.
In its annul report, the company said though exports revenue grew by only 5% in FY23, there were substantial growth in a few strong markets. Export turnover for FY23 was Rs 1,866 crore as against Rs 1,779 crore in the previous year.
On the Bangladesh market, MRF said while the forex crisis has receded a bit, the company is yet to see the robust levels of early 2022.The Philippines in the far east & the west Asian region showed substantial growth and continues to maintain the momentum for brand MRF.
Categories of truck radial, light truck and passenger car tyres showed good growth in these markets and consumer preferences continue to be high.
“Going forward we see immense opportunities in our existing strong markets of West Asia, Africa, Far East, Bangladesh and emerging markets of Europe, South America & USA,” the company said.
On the EV segment, MRF said auto sector is investing in developing the charging infrastructure.
“We continue to be a preferred choice of fitment of original equipment manufacturer in most of the new launches. During the year we had also further strengthened our after market portfolio with new products both in the motorcycle and scooter segment,” it said.
On the outlook, MRF said the pent up demand in passenger vehicles will cool in FY24. Higher capital expenditure by the auto industry points to high levels of capacity utilisation and is a pointer to higher levels of production in future.
With new BS VI phase-2 coming into force from April, vehicle costs will go up. However, the reduction in input costs will be a positive for the auto industry, it added.
