One reason, industry insiders say, is that tyre sales by original equipment manufacturers have been weak and the replacement tyre segment for commercial vehicles has also not done well. One industry veteran expects an improvement in sales only by the last quarter of FY23.
Combined with growing local demand, that could force the world's second-biggest consumer of the commodity to increase shipments from key exporters such as Thailand, Vietnam and Indonesia.
Subba Rao Amarthaluru, CFO, CEAT anticipates a 10 percent growth in second half of FY15 as plummeting crude prices will reflect in prices of its derivatives such as synthetic rubber, carbon black and nylon tyre chord.
The country's synthetic rubber consumption rose by 8% to 35,740 tonnes in May this year, while domestic production declined marginally to 9,468 tonnes in the same period, according to the Rubber Board.
Arnab Banerjee, ED, Ceat in an interview with CNBC-TV18 said that the company experienced a margin squeeze last year because of significant increase in raw material prices primarily, rubber.
In CNCBC-TV18's special show, 'Lanxess Rubber Day', expert panelist spoke on ‘Synthetic rubber as an enabler for safety performance and fuel efficiency’.