Indian tyre sector: A smooth ride ahead says Sushil Finance

Sushil Finance has come out with its report on tyre sector.

The Indian tyre industry has seen strong demand growth post FY 2009 but huge spike in Natural rubber prices from CY 2011 have had a severe impact on profitability of the Tyre Companies. There were price revisions seen by tyre manufacturers across the industry but they were not enough to pass on the steep rise in rubber prices. However with the recent decline in rubber prices the medium to long term outlook on the sector remains promising. Few of the factors that would have an impact on demand for tyres in India have been summarized below.
 
Healthy Auto Demand to drive demand for Tyres: According to SIAM, Passenger Vehicle (PV) Sales are expected to grow from 2.2 mn units in 2009 to 5.1 mn units in 2015 implying a CAGR of 15.0%. On the other hand Commercial Vehicle (CV) Sales including Small Medium and Heavy CV

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