Used tire market in India is growing
India’s booming automotiv market due to its rapidly growing vehicle population has created an equally vibrant tire aftermarket.
The country’s sizeable abd highly dynamic middle class is in a better position than ever before to purchase due to easy financing options, thereby driving the automotive market and in turn, the tire aftermarket.
Indian tire replacement market reveals that the aftermarket earned revenues of $1.461 billion in 2005 & estimates this to reach $3.414 billion in 2012. The commercial vehicle segment is withessing particularly high replacement rates of tires due to widespread overloading of vehicles and improper vehicle maintenance.
Overloading is one of the key drivers of the Indian tire aftermarket since it results in abnormal tire flexing and produces excessive amounts of heat within the tire, ultimately leading to its failury.
Indifferent vehicle maintenance can significantly shorten the life of the tire, while baddriving patterns such as inappropriate braking and accelerating result in greater wear and tear.
The import of used tires is growing in India.
Importing such tires has become a relatively easy task due to the increased focus on Regional Trading Agreements (RTAs) and the lowering of import tariffs as a result of India’s integration with the global economy.
These standards are expected to become mandatory by 2008 and applicable on tires made for domestic use as well as imported ones.