pattern photo
YEARS
Rating agency Crisil Ratings said that the income of tire manufacturers is likely to increase by 7-8 percent in the current financial year 2024-25. This will be the second consecutive year that estimated revenue growth for the tire maker will be in single digits (although it is almost double compared to the previous financial year).
Mumbai . The income of tire manufacturers is likely to increase by 7-8 percent in the current financial year 2024-25. This will be the second consecutive year that the tire maker's estimated revenue growth will be in single digits (although it is almost double compared to the previous financial year), ratings agency CRISIL Ratings said. A compound annual growth rate of 21 percent was recorded between the financial years 2020-21 and 2022-23. “Domestic demand accounts for about 75 per cent of the industry's sales, while the rest is exported,” said Anuj Sethi, senior director, CRISIL Ratings. “About two-thirds of the domestic demand is from the replacement segment and the rest from original equipment manufacturers (OEMs).”
Seth said replacement demand mainly from commercial and passenger vehicles will drive volume growth, while slow growth in commercial vehicle sales is expected to drive only one to two per cent growth in OEM demand. On the export front, due to weak demand in major markets like North America and Europe, the growth rate is expected to be two to three percent, which is about 60 percent of India's total exports.
Disclaimer: Prabhasakshi has not edited this news. This news has been published from PTI-language feed.
other news
