OTR tyre market looks positive in 2021
Equipment

OTR tyre market looks positive in 2021

The off-the road (OTR) tyre market in India would continue to grow in 2021 and in coming years as India plans to invest $1.4 trillion on several infrastructure projects by 2025 including projects related ...

The off-the road (OTR) tyre market in India would continue to grow in 2021 and in coming years as India plans to invest $1.4 trillion on several infrastructure projects by 2025 including projects related to ports, railway, roads, etc, according to TechSci Research. “The Government of India has also partnered with Japan for infrastructure development in north-eastern states of India. All these activities are going to increase the use of OTR vehicles in the country over the course of next 5-10 years, which is further going to augment demand for OTR tire in OEM as well as replacement segments, with later witnessing higher growth due to expanding OTR vehicle fleet,” says TechSci Research. In 2020, Indian OTR vehicle tyre market stood at 9.60 million units in terms of volume. The share acquired by the agri machinery in India is 59.51 per cent by 2020 while the share of mining and construction segment stands at 37.24 per cent and is going to increase in the coming years, according to the research firm. The replacement market is rising with continuous increase in the fleet of OTR vehicles. In 2020, the replacement market share stood at 60.59 per cent while the OEM market share was 39.41 per cent. Demand drivers With reference to the various development activities taken up by the government, the OTR tyre market is expected to gain majorly in the coming years as TechSci Research highlights the major demand drivers as: Growth in infrastructure: Increasing population and rising urbanisation are boosting the infrastructure projects landscape. With upcoming and ongoing projects, the construction sector is the third largest contributor to the economic growth. Government initiatives: The Indian government is taking steps to boost construction activities across the country. The National Infrastructure Pipeline (NIP), the Affordable Rental Housing Complex (ARHC) scheme and investments in the industrial sector open great opportunities in the construction sector in 2021. Increase in mining projects: The Ministry of Environment has approved 10 coal mining projects in different states of India. The ministry states that the projects will have an output of 160 million tonnes annually. These projects are going to bring a quick rise in the demand for OTR vehicles, which in terms is directly going to boost sales of OTR in OEM as well as replacement segments. The recent large volume buying in the mining equipment after the pick up in mining activities in the country will also push for more demand for OTR tyres, especially tyres for mining applications in the coming years.

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