Updated Aug 25, 2022 21:50

Market for Agricultural, Construction and Industrial Machinery Tire in India

Market Overview
In , the Indian market for tyres for agriculture, forestry, construction, industry and other off the road vehicles decreased by -% to $ for the first time since 2015, thus ending a five-year rising trend. In general, the total consumption indicated pronounced growth from 2007 to : its value increased at an average annual rate of +% over the last fourteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Consumption of peaked at $ in , and then fell significantly in the following year.

In value terms, production of tyres for agriculture, forestry, construction, industry and other off the road vehicles declined modestly to $ in estimated in export price. In general, production, however, saw prominent growth. The most prominent rate of growth was recorded in 2011 with an increase of % against the previous year. Production of peaked at $ in , and then reduced in the following year.


Consumption
Consumption of tyres for agriculture, forestry, construction, industry and other off the road vehicles in India totaled units in , picking up by % compared with . Overall, the total consumption indicated a modest increase from 2007 to : its volume increased at an average annual rate of +% over the last fifteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption decreased by -% against indices. Over the period under review, consumption of tyres for agriculture, forestry, construction, industry and other off road vehicles hit record highs at units in ; however, from to , consumption failed to regain momentum.

The value of the market for tyres for agriculture, forestry, construction, industry and other off the road vehicles in India expanded sharply to $ in , growing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total consumption indicated a tangible expansion from 2007 to : its value increased at an average annual rate of +% over the last fifteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption decreased by -% against indices. Over the period under review, the market hit record highs at $ in ; however, from to , consumption remained at a lower figure.


Market Forecast
Driven by increasing demand for agricultural, construction and industrial machinery tire in India, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to units by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of agricultural, construction and industrial machinery tire in India were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for agricultural, construction and industrial machinery tire. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
India remains a net exporter of agricultural, construction and industrial machinery tire; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of units, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.