Tyre major Ceat is targeting a market share of 12% over the next two years, its MD and CEO Arnab Banerjee said. The number four player in the domestic tyre market, it manufactured more than 48 million tyres in FY24.
The company posted a turnover of INR 11,893 crore during the same fiscal (2023-24) and is looking at a top line revenue of INR 17,000 crore over the next three years.
Briefing reporters here, he said, Ceat’s market share has gone up by 1% from 7% to 8% over the past few months. “Our immediate milestone is 12%-13% and it will take about two years. Apart from replacement, this will also be supported by growth in OEMs. The commencement of our new production line in the plant near Chennai will augment the increase in our market share,” he said.
On Wednesday, the tyre manufacturer expanded its facility at Sriperumbudur on the outskirts of the city with the inauguration of the new Truck Bus Radial (TBR) production line. Setup with an investment of INR 670 crore, its production capacity will reach 1,500 tyres daily over the next 12 months. Of this, replacement will account for 40%, followed by exports and OEM at 35% and 25%, respectively.
Noting that the Chennai facility will emerge as the largest plant among Ceat’s six plants in the country, he said, the factory will witness significant investments in the future. “This plant is geared towards exports and a large portion of the production will go to Europe and the US,” he said.
To a query on any move to increase tyre prices, he said, the hike in natural rubber price is unprecedented. “There should be a 1%-2% (increase in tyre prices) that will happen, but when it will happen depends on the competition,” he added.
Ceat tyres caters to various segments such as 2-wheelers and 3-wheelers, passenger and utility vehicles, commercial vehicles and off-highway vehicles.
