By Anshuman Singhania
A remarkable transformation has unfolded in the Indian automotive industry. Once regarded as a laggard – characterised by dearth of innovation, lacklustre engineering, subpar manufacturing practices and inadequately skilled workforce – the industry has undergone a metamorphosis. Today, India is a global automotive manufacturing powerhouse.
This transformation is not limited to original equipment manufacturers (OEMs) alone – it encompasses component manufacturers and, notably, tyre producers. There was a time Indian tyre companies relied on imports, rebranding products from established global players due to our limited indigenous research and development (R&D) capabilities. In the formative years (1960s to 1980s) of Indian tyre industry, collaboration with MNCs was the only avenue to get the technical knowhow to develop our own product in a limited manner.
But empowered by R&D, Indian tyre manufacturers are challenging global giants on their own turf. A recent report (Crisil) noted that R&D spend of the tyre industry is forecast to more than double to $151 million from $64 million, after growing threefold in the past five fiscals. At JK Tyre, the R&D expenditure in FY23 was Rs 116 crore.
Our state-of-the-art Raghupati Singhania Centre of Excellence (RPSCoE) in Mysuru has been at the forefront of innovation. This is in addition to our independent research institute, the Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) – set up to address advancing elastomer and tyre technologies.
The fruits of R&D investments, both by us and other tyre companies, are evident, notably in our export potential. India can proudly claim to host the world’s finest radial tyre manufacturing facilities. Tyres crafted by Indian manufacturers are now dispatched to over 170 countries, with a strong presence in the developed markets of the US and Europe. In fact, one of JK Tyre’s brands is a market leader in the truck-and-bus radial segment in the US.
Indian tyre companies are also making their presence felt in advanced products such as smart tyres, noise-reduction tyres, puncture-guard tyres and tyres for electric vehicles.
Against the backdrop of a shifting geopolitical landscape, where the concept of China+1 has gained considerable traction – as global corporations seek alternatives to diversify supply chains and mitigate risk – India can emerge as that ‘plus one’, where all industries, including tyres, will have a big role to play.
The author is managing director, JK Tyre & Industries. Views are personal