Good news for Indian Tyre Industry:
Anticipating new truck and bus launches, most of which will be fitted with radial tyres, manufacturers in India are starting to install capacity to meet the demand.
According to Automotive Tyre Manufacturers’ Association (ATMA), an estimated Rs2,615 crore will be invested by 2011, which will cumulatively create an extra capacity of 3.77 million truck and bus radials. The expansion comes at a time when the recovery in sales of truck and bus is only just beginning to pick up.
Sales of such commercial vehicles had shrunk by 22% to 384,122 units in the fiscal ended March, compared with the previous fiscal.