Heavy Vehicle Tires Market Intelligence

Report Coverage

  • Major Supplier Profile - Supplier Landscape
  • Cost Structure Analysis
  • Tire manufacturing process
  • Cost index

Table of contents

  1. Executive Summary
  2. Market Overview and Analysis - India
  3. Industry Practices
  4. Supplier Analysis
  5. Cost Structure Assessment

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Global Market Outlook on Heavy Vehicle Tires 


Tire consumption by OEMs is dependent on new automobile sales trend while the replacement segment is linked to usage patterns and replacement cycles.


heavy vehicle tires market size

  • The auto industry in India is expected to be the world's third largest by 2018 behind China and the US, and will account for more than 5 percent of global vehicle sales
  • The country is also expected to become the fourth largest automobile producer globally by 2020 after China, US and Japan. India is the currently the world's second largest two-wheeler manufacturer
  • In unit terms, TBR amounts to only 10 percent of the total tire production but accounts for 54 percent of the total revenue earned

Market Drivers and Constrains for Tires - India 


Population growth in emerging markets

  • In response to considerable population growth  in India, vehicle ownership base  is expected to rise significantly, which in turn will drive growth in the tire industry

Original equipment fitments

  • Government thrust on agriculture and rural development to drive tractor sales

Fuel oil prices

  • Lower and stable fuel prices have increased affordability

OEM Sales/Demand:

  • Increase in demand for haul truck/mining truck drives up the OTR tire demand. Mining truck, especially the sales of 110 tons truck-class, and higher versions of the same class are expected to witness a gradual growth until 2020


Cyclical Market Condition:

  • The manufacturers usually show considerable constraint in terms of tire pricing, as the industry faces an unpredicted  demand fluctuation in a short span of time

Green to Sustainable Development

  • Fuel consumption, greenhouse gas, water usage, waste emissions etc.
  • Legislation (e.g. tire labeling) introduced, focus on rolling resistance, elimination or re-use of scrap, tire recycling and so on

Sustainable Development

  • Security of supply, management of price volatility, and geographic concentration
  • Leading manufactures have identified business risks related to raw material supply and are developing strategies to migrate these risks

OEM Requirements

  • OEM's are placing similar stringent requirements on their suppliers (which include tire manufacturers)

Price Drivers

  • Supply-Demand Gap- The tire market is cyclical and fluctuating which makes demand very hard to predict. This uncertainty has led to very high prices of tires which continues to be in short supply. This will continue to increase prices further.
  • Labor Rates- Tire manufacturing is a very labor intensive industry with labor constituting  between 9-12 percent of the total cost of tire production. Increasing labor rates will have a high impact on tire prices.
  • Utility Costs- Costs of utilities such as electricity and fuel during the manufacture of tires account for around 5-10 percent of the total cost of production. Utility costs will continue to rise in future. With electricity and fuel prices going up, we can expect it to have an impact on tire prices and contribute to a marginal tire price hike yearly.
  • Raw Materials- Raw material constitutes upto 70 percent of the cost of manufacturing tires with natural rubber & synthetic rubber and crude oil derivative as key material. Thus prices of passenger tire will vary every year with natural rubber and crude oil.

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