Ceat unveils FY26 growth strategy, targets doubling export revenue
ECONOMY & POLICY

Ceat unveils FY26 growth strategy, targets doubling export revenue

Ceat, a prominent tire manufacturer, has revealed its growth strategy for fiscal year 2026. The company aims to increase its market share in the car and truck tire segments while doubling its export revenue. Meanwhile, it seeks to maintain its leadership position in the two-wheeler tire segment.

Ceat asserts its dominance in the two-wheeler tire segment, currently holding a market share of approximately 28 per cent. Despite challenging market conditions, the company's market share has grown from about 26 per cent in FY19. Ceat plans to leverage premiumisation to further expand its share. Notably, the contribution of premium range products to its revenue has risen from 13 per cent in FY19 to around 23 per cent in FY23, according to the company's investor presentation.

The company has made significant progress in the electric vehicle (EV) sector, establishing a strong presence in the electric two-wheeler original equipment manufacturer (OEM) space. Ceat claims to hold over 40 per cent of the market share in this segment. Anant Goenka, the Vice Chairman of Ceat, highlighted the company's collaboration with leading OEMs, particularly in the two-wheeler segment, allowing them to become market leaders in the two-wheeler EV space. Ceat takes pride in being the first tire brand approved by an OEM in the commercial EV segment.

Ceat, with revenue of Rs 113.15 billion, aims to increase its market share in the two-wheeler tire space by 4 per cent. The company plans to achieve this through a stronger focus on premium motorcycles, expanding its presence in the EV sector, and improving penetration in the southern region. Additionally, Ceat intends to cater to niche segments like adventure biking and Moto GP versions. The company charges a premium of 2-3 per cent compared to its closest competitor, according to a report by Motilal Oswal Financial Services.

In the passenger vehicle tire segment, Ceat's market share has grown to about 15 per cent in FY23 from approximately 11 per cent in FY19. However, it still lags behind the market leader by 3-4 per cent. As part of its Vision FY26 plan, Ceat aims to secure a leadership position by increasing its share to 18-19 per cent. In the SUV segment, the company claims a market share of 20-25 per cent. Notably, the premium range's share has increased from 9 per cent in FY19 to 28 per cent in FY23.

Ceat currently holds a 7 per cent market share in the truck and bus radial (TBR) tire category and aims to raise it to 11-12 per cent by FY26.

Over the past four years, Ceat has experienced substantial growth in export revenues, which now amount to Rs 20 billion, equivalent to 18 per cent of its overall revenue. The company aspires to double its export revenue to Rs 40 billion by FY26. This growth will be supported by increased global demand, higher sales of off-highway tires (OHT), and further market penetration.

Ceat has a presence in 25 European countries and 14 Latin American countries. The company plans to expand into the United States, intending to launch car/SUV and TBR products by the end of FY24. Successful testing of its TBR product has already taken place.

In FY23, Ceat produced more than 45 million tires, with an average capacity utilisation of 80 per cent across all its plants. The company anticipates a capital expenditure of Rs 700-750 crore in the current fiscal year. Moreover, Ceat allocated 1.5 per cent of its turnover to research and development in FY23.

Ceat, a prominent tire manufacturer, has revealed its growth strategy for fiscal year 2026. The company aims to increase its market share in the car and truck tire segments while doubling its export revenue. Meanwhile, it seeks to maintain its leadership position in the two-wheeler tire segment.Ceat asserts its dominance in the two-wheeler tire segment, currently holding a market share of approximately 28 per cent. Despite challenging market conditions, the company's market share has grown from about 26 per cent in FY19. Ceat plans to leverage premiumisation to further expand its share. Notably, the contribution of premium range products to its revenue has risen from 13 per cent in FY19 to around 23 per cent in FY23, according to the company's investor presentation.The company has made significant progress in the electric vehicle (EV) sector, establishing a strong presence in the electric two-wheeler original equipment manufacturer (OEM) space. Ceat claims to hold over 40 per cent of the market share in this segment. Anant Goenka, the Vice Chairman of Ceat, highlighted the company's collaboration with leading OEMs, particularly in the two-wheeler segment, allowing them to become market leaders in the two-wheeler EV space. Ceat takes pride in being the first tire brand approved by an OEM in the commercial EV segment.Ceat, with revenue of Rs 113.15 billion, aims to increase its market share in the two-wheeler tire space by 4 per cent. The company plans to achieve this through a stronger focus on premium motorcycles, expanding its presence in the EV sector, and improving penetration in the southern region. Additionally, Ceat intends to cater to niche segments like adventure biking and Moto GP versions. The company charges a premium of 2-3 per cent compared to its closest competitor, according to a report by Motilal Oswal Financial Services.In the passenger vehicle tire segment, Ceat's market share has grown to about 15 per cent in FY23 from approximately 11 per cent in FY19. However, it still lags behind the market leader by 3-4 per cent. As part of its Vision FY26 plan, Ceat aims to secure a leadership position by increasing its share to 18-19 per cent. In the SUV segment, the company claims a market share of 20-25 per cent. Notably, the premium range's share has increased from 9 per cent in FY19 to 28 per cent in FY23.Ceat currently holds a 7 per cent market share in the truck and bus radial (TBR) tire category and aims to raise it to 11-12 per cent by FY26.Over the past four years, Ceat has experienced substantial growth in export revenues, which now amount to Rs 20 billion, equivalent to 18 per cent of its overall revenue. The company aspires to double its export revenue to Rs 40 billion by FY26. This growth will be supported by increased global demand, higher sales of off-highway tires (OHT), and further market penetration.Ceat has a presence in 25 European countries and 14 Latin American countries. The company plans to expand into the United States, intending to launch car/SUV and TBR products by the end of FY24. Successful testing of its TBR product has already taken place.In FY23, Ceat produced more than 45 million tires, with an average capacity utilisation of 80 per cent across all its plants. The company anticipates a capital expenditure of Rs 700-750 crore in the current fiscal year. Moreover, Ceat allocated 1.5 per cent of its turnover to research and development in FY23.

Next Story
Infrastructure Energy

NTPC Signs $11.5 Billion Clean Energy Deals in Chhattisgarh

Juniper Green Energy has successfully commissioned a 100-MW solar power project aimed at supplying electricity to Bhutan, marking a significant milestone in regional energy integration. According to the company's statement, the project facilitates a crucial cross-border agreement allowing Bhutan to receive 50% of the power generated during the winter months. This arrangement permits Bhutan to directly import power from an Indian generator under an established bilateral trade framework. Located in Rajasthan, the solar project contributes a total generation capacity of 100 MW. Highlighting the..

Next Story
Infrastructure Energy

Juniper Green Commissions 100-MW Solar Project for Bhutan

The New Delhi Municipal Council (NDMC) held its first council meeting since the Delhi Assembly polls focusing on a comprehensive Summer Action Plan aimed at achieving 100% solar energy adoption by 2026. The meeting, led by MP Bansuri Swaraj, began with the swearing-in of three new NDMC members — Delhi Minister and New Delhi MLA Parvesh Sahib Singh, Delhi Cantt. MLA Virender Singh Kadian, and Ravi Kumar Arora, Additional Secretary of the Ministry of Housing and Urban Affairs. Solar Energy Push NDMC Vice Chairman Kuljeet Singh Chahal announced the civic body's ambitious solar energy plans, ..

Next Story
Infrastructure Energy

NDMC Pushes for 100% Solar Energy by 2026

Mumbai-based energy storage startup AmpereHour Energy has raised $5 million from Avaana Capital, with participation from UC Impower and other angel investors. Founded in 2017 by IIT Bombay alumni, AmpereHour Energy focuses on building AI/ML-enabled Energy Storage Systems ranging from kW/kWh scale systems for Mini-grids to MW/MWh scale systems compatible with solar PV and wind plants. The systems are designed to be plug-and-play, integrated with the company’s proprietary Energy Management platform, Elina. The fresh capital will be directed towards expanding manufacturing and software capabi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?