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India on the Move: An Appraisal of Indian Tyre Industry

Conference Paper · November 2020

DOI: 10.6084/m9.figshare.13332452.v1

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 India on the Move: An Appraisal of Indian Tyre Industry

Aleena Sara John, Third semester MBA, MACFAST

Dr. Sudeep B. Chandramana, Associate Professor, Department of Management Studies,
MACFAST
Abstract

After China, Europe, and the United States, India is the fourth largest market for tyres in the
world. Tyres manufactured in Indian are being exported to more than 100 countries in the
world, including the most astute regions such as US and European nations. Covid-19 has
pressed a reset button for all the businesses. It began as a health emergency, but has
transmuted into an existential crisis for most of the industries. There is no doubt, the formats
for doing businesses would change. Being a progressive sector of Indian manufacturing, tyre
industry is riding the waves of change. New concepts such as contactless services are already
being implemented as a measure of safety. While the global supply chain addresses the
disruptions that the pandemic has caused, Indian tyre industry has the potential to lead in
manufacturing at a global level, taking into consideration of the policy changes related to
Prime Minister’s call to build a self-reliant India. This paper explores the current status of
tyre industry, factors that contribute to higher productivity in the industry, challenges faced
by it and the prospects of the industry in moving towards ‘Atmanirbhar Bharat’.

Keywords: Tyre industry, Atmanirbhar Bharat, Productivity, Self-reliant India

1. Introduction

Tyre industry has companies that manufacture, and sell automobiles or any vehicle tyres to
the consumers, retailers, dealers or industries whose primary operation is related to tyres.
This industry focuses mainly on either new or reconditioned and used tyres, for two-
wheelers, cars, SUVs, vans, buses, trucks and trailers or any heavy goods transport vehicles.

Tyres industry is a mature one after evolving and undergoing many cycles and stages in the
previous century that the business has adapted and maintained the optimisation of demand
and supply chain and function to the overall efficiency. As one of the biggest contributors to
the world economy, the industry has had its ups and downs and many alterations in its overall
organisational structures that today the business is performing excellently. In this industry,
tyre retailing business does not include re-treading of motor vehicle tyres, but to carry out
repairs and fixes on tyres.
2. Objectives of the Study

The major objectives of this study are:

a. To study the current status of tyre industry in India

b. To analyse the factors that contribute to higher productivity in tyre industry
c. To identify the challenges faced by tyre industry in India
d. To appraise the prospects for tyre industry in progressing towards ‘Atmanirbhar
Bharat’ or Self-reliant India

3. Research Methodology

The nature of this study is descriptive. Secondary sources of data were used for compiling all
the relevant data related to tyre industry. Major sources of data were Government websites,
blogs, websites of industry bodies and other third-party consultants, business magazines and
newspapers.

4. Tyre Industry – Market size and growth

Globally, automobile ownership has been growing at a higher rate than the world population.
India is the fifth largest auto market in 2019 with sales attaining to 3.81 million units. It was
the seventh biggest producer of commercial vehicles in 2019. India is also a leading auto
exporter and has robust export growth projections for the near future and also will be the
leader in the two-wheeler and four-wheeler market, globally by 2022. Market size points that
the domestic automobiles production increased at 2.36% CAGR between FY16-20 with
26.36 million vehicles being manufactured in the country in FY20. Overall, domestic
automobiles sales went up at 1.29% CAGR between FY16-FY20 with 21.55 million vehicles
being sold in FY20 which shows the future blooming era of Indian Tyre Industry.

4.1 Global Scenario

The global market for tyres is estimated to reach 2. 7 billion units by 2025 (The "Tyres -
Global Market Trajectory & Analytics" report 2020), driven by continuous developments in
tyre engineering particularly innovations surrounding tyre tread technology. Macro factors
that drive development in the market include healthy upswing in agrarian economies
emphasised on mechanisation and the resulting good demand for agricultural vehicle tyres;
healthy recovery in the global construction activity, bigger spending on construction vehicles
and a parallel growth in demand for construction tyres in the OEM market; sturdy demand for
commercial vehicle tyres at the back of increasing investments in fleet expansion in the
logistics business; government efforts on smart transportation, and mounting vehicle density
and a proportionate expansion of addressable market opportunities for replacement tyres in
the after-sales market.

Ready to score the highest gains in the market in future years will be premium and specialty
tyres with high speed, low rolling resistance, increased insulation to reduce road noise,
additional padding, and innovative tread grooves and patterns. Replacement demand remains
key to the market`s growth since most tyres wear out well before they become old.
The global tyre market reached a volume of 3.2 Billion Units in 2019, growing at a CAGR
of around 4% during 2014-2019 (Tyre market: Global industry trends forecast 2020-2025).

Looking forward, IMARC Group expects the global tyre market to exhibit moderate
growth during 2020-2025(Tyre market: Global industry trends forecast 2020-2025). Global
demand for tyres will reach 3.2 billion units in 2022. Since tyres are essential components of
vehicles and other transportation equipment, two critical factors affect growth:
• Rising incomes in developing nations increase purchases of vehicles and thereby the
need for OEM tyres. A larger regional vehicle park also augments the pool of
potential replacement sales.
• Economic growth influences increase in average annual vehicle mileage and expedites
the requirement for replacement tyres.
Three of the world’s four biggest tyre markets are in Asia - China, India, and Japan. Through
2022, the Asia-Pacific region will offer the finest opportunities for growing tyre sales.
Continuing industrialisation efforts and economic expansion will boost personal income
levels and improve the share of the population that can afford vehicles. As a result of
enhanced motor vehicle ownership rates, opportunities for related replacement tyre sales will
rise. During the forecast period, the Asia-Pacific region will be contributing for more than
two-thirds of world tyre demand additions.

4.2 Indian scenario

The overseas companies controlled the Indian tyre industry till 1960. However, in the later
part of the 60s and 70s, the Indian entrepreneurs made a noteworthy entry market with
foreign collaborations in the automobile sectors within the country. Transport is the life blood
of civilisation and plays a crucial role in the economic, social, cultural and political
advancement of the economy. The manufacturing of automobile tyres became an essential
activity for the development of the automobile sector.

Over 1 billion tyres are produced annually, making the tyre industry the main consumer of
natural rubber. The starting point of the Indian tyre industry is 1926, when Dunlop Rubber
Limited set up the first tyre factory in West Bengal. At present, there are forty listed
companies in the tyre sector in India. Major players are MRF, JK Tyres, Apollo Tyres,
CEAT, Birla and Goodyear which account for 63% of the organized tyre market. Current
status of radialisation has 95% for all passenger car tyres, 12% for light commercial vehicles
and 3% for heavy vehicles.

Indian tyre industry produces the complete assortment of tyres required by the Indian
automotive industry, except for certain specialised tyres. Domestic manufacturers produce
tyres for trucks, buses, passenger cars, jeeps etc. Among the states, Kerala is one of the
largest rubber producers in Asia along with Thailand, Malaysia and Indonesia.

While the tyre industry is largely governed by the organised sector, the unorganised sector
dominates the bicycle tyre market. With the focus on providing better products and services,
Indian tyre manufacturers are setting up well-equipped in-house R&D centres with emphasis
on developing cutting-edge technology for new compounds, new designs for different
segments and new reinforcement materials. Cost optimisation for quality improvements and
orientation towards changing customer requirements are also areas of research. Recently, the
idea of ‘green tyres’ is emerging as a benchmark for the industry’s competitiveness. Though
the technology has been existing since the 1990s, due to higher manufacturing costs, it was
put on the backside until recently. Green tyres provide several advantages over ordinary
tyres, including lower fuel consumption.

5. Economic Contribution of the Tyre Industry

The tyre industry involves about 5 lakh people, who directly and indirectly derive their
livelihood from it, involving farmers and agriculturalists, 1.5 lakh in manufacturing and about
1 million in service and aftersales markets. Some of the key features of the tyre industry are:
 • Turnover has doubled in five years from ₹25,000 crore in 2009-10 to ₹53,000 crore in
2015-16 and has grown faster (9.3%) than its mother automobile industry (5.3%) in
the last five years.
• Tyres are 3% of the manufacturing GDP of India and 0.5% of the entire GDP of the
nation.
• The rubber and plastic industries, to which tyres are significant contributors, weigh in
at 2.7% on the manufacturing index against the automotive industry’s weightage of
5.4%.
• Statistical analysis of the IIP growth of the two industries shows that the tyre industry
has a correlation of 0.78 with the automobile industry, implying strong linkage
between the two industries.
• Private investment in the industry today is ₹36,000 crore, making it one of the most
financed industries by private business in India.

The tyre industry directly takes inputs from the rubber plantation sector and petroleum
industry and has linkages with ancillary industries, like chemical, capital goods and
packaging materials, etc. It also has other linkages with trade and services of tyre products all
over the country. Hence, when the demand for products from the tyre industry rises, the
demand for the products of these ancillary and other industries will go up, resulting in an
indirect impact on the economy. With increased demand, employment and income also rise
which leads to rise in spending power and hence consumption, culminating in the demand for
other related segments, say consumer goods. In addition, the tyre industry prompts
productivity gains through the use of automobiles which in turn increases individual
productivity (Automotive Tyre Manufacturers Association: Report).

6. Factors that contribute to Better Productivity

India holds certain advantage s and opportunities which are crucial for the growth of the tyre
industry. However, there are a number of roadblocks to its growth which need to be
overcome, as the industry looks to contribute to the Government's "Make in India"
programme and ‘Atmanirbhar Bharat Abhiyan’. This section focuses on these opportunities
and the challenges.
6.1 Rising Income Levels

A study by the McKinsey Global Institute suggests that if India continues on its current high
growth path, over the next two decades, the Indian market will undergo a major
transformation. Mean household income will grow triple in the next 20 years and India will
become globally, the fifth largest consumer economy by 2025. Another report by PwC
estimates that by 2021, India's emerging and middle-class segments combined will comprise
nearly 900 million people. India is one of the most attractive markets with the rising incomes
of the middle class. Emergence of the middle class will drive the passenger car industry
which will subsequently fuel the growth of the industry.

6.2 Penetration Levels of Passenger Cars

Passenger car penetration levels in India are in a very nascent stage compared to the
emerging and developed countries. India has only 10 cars per 1,000 population compared to
the world average of 125. For China, this figure is 50 and for other emerging and developed
countries it is more than 200. Coupled with the rise of the middle and upper middle classes in
the coming years, the penetration levels of passenger cars among the Indian population are
expected to increase manifold. This will be a key driving factor for the Indian tyre industry.

India is having an increasing rate of urbanisation with large number of people moving to the
cities and towns for better livelihoods. According to Census 2011, the current rate of
urbanisation in India stands at 31.16% in 2011 rising from 27.86% in 2001 and 25.72% in
1991. According to a McKinsey report, it is estimated that by 2030, the share of the urban
population will reach 40% (Automotive Tyre Manufacturers Association: Report).

With urbanisation, families are becoming single and nuclear. Female participation in the
workforce is increasing rapidly with growing realisation among urban families and among
women themselves that women should work, contribute to the family income and secure their
financial future. With increasing income, lack of good public transport and safety of women,
there is perceptible inclination towards passenger cars and two-wheelers which again is a
push factor for the tyre industry. Moreover, a large section of the working population in these
new age cities is expected to be young as more than 50% of India's population is below the
age of 25, and more than 65% is below the age of 35.This young population has a great
propensity for passenger cars and two wheelers that have a strong potential to drive the
growth of the automobile and tyre industries.

6.3 Faster Economic Growth

India is among the fastest growing economies in the world and is witnessing sustained
economic activity in various sectors. Infrastructure development, construction and the
housing sector are some of the key areas for which the Government of India has formulated
various policies and given certain incentives to drive this sector. In addition, the ‘Make in
India’ programme will attract investment in the manufacturing sector and spur higher
industrial activity. All this will result in a greater demand for industrial and construction
tyres.

6.4 Growing Radialisation of Tyres

Radialisation has developed as a major factor contributing to the growth of Indian tyre
industry. The passenger cars tyre segment has radialisation to the extent of 98%, while only
36% vehicles in truck and bus (T&B) segment and 40% in light commercial vehicles (LCV)
have radialised tyres. Backed by a growing awareness of the cost benefits, continuous
improvement in the road infrastructure and stringent implementation of overloading norms
and new radial capacities going onstream, radialisation levels in the commercial vehicle
space are likely to reach 65-70% over the next four years (Automotive Tyre Manufacturers
Association: Report).

Given the global phenomenon of radialised tyres, there is an enormous scope for radialisation
in India and increased investments in radial capacities are expected to yield significant
benefits for this industry moving ahead.

7. Challenges faced by Tyre Manufacturing Industry

The tyre industry in India, has several opportunities to grow; however, it still has a long way
to go in order to compete in the global marketplace. This section analyses key challenges
faced by the Indian tyre industry that sway growth and competitiveness in the global
marketplace.

7.1 Inverted Duty Structure

Inverted duty structure is a key challenge for the Indian tyre industry. Inverted duty structure
is where the key raw material (natural rubber) attracts higher customs duty than its finished
product (tyres). The table below shows that India is the only country that has an inverted duty
structure for the tyre industry. Even when basic customs duty is 10% for tyres, it is actually
much lower than that under various trade agreements for the duty (on tyres) when compared
with the basic custom duty of its principal raw material, natural rubber. The inverted duty
structure reduces the competitiveness of the domestic industry and encourages volumes of
cheap imported tyres despite adequate domestic capacity already in place.

7.2 Negative Impact of Trade Agreements

Foreign trade agreements (FTAs) and regional trade agreements (RTAs) of India will
negatively affect the Indian tyre industry and add to its challenges. Trade agreements affect
the domestic tyre industry by providing concession on customs duty on finished tyres.
Though tyres can be imported to India at preferential or concessional duties, they virtually
provide no concession on import duty of natural rubber. Natural rubber falls in the negative
list across all FTAs/RTAs except with Sri Lanka which holds very little significance and tyre
industry competitiveness. Therefore, it is affected due to the higher input cost of key raw
material.

7.3 High Tariff Rates on Indian Exported Tyres

The top 15 destinations given in the table comprise 66% of total Indian tyre exports. India has
few trade agreements such SAARC preferential trade agreement (SAPTA), India-
MERCOSUR Preferential Trade Agreement among its top destinations. Most of the
significant destinations of Indian tyre exports has high general duty tariff. Absence of any
trade agreements with these countries reduces the competitiveness of the Indian tyre industry
in relation to other countries.
7.4 Greater Import Dependence on Raw Materials

This industry is a raw material intensive one. Raw materials account for nearly 72% of the
total production cost. Natural rubber is the primary raw material in the production process of
tyres and results in 44% of the total raw material cost. Nevertheless, the Indian tyre industry
has to depend on the imported natural rubber because of a mismatch between production and
consumption of domestic natural rubber. India consumes more than 80,000 tons of natural
rubber, out of which the tyre industry consumes about two-thirds of the natural rubber. In
relation to this, only 40,000-50,000 tons of natural rubber is produced in India. In addition,
both natural rubber and crude prices are controlled by the external environment and little can
be done to control the raw material price movement internally. Greater import dependence on
raw material and volatility in the prices imposes challenges for the Indian tyre industry.

7.5 Price Arbitrage of the Natural Rubber

The price of natural rubber in India is quite volatile and is higher than world rubber prices
(Bangkok benchmark). The prices of natural rubber are about 10-20% higher than the prices
in the international market which is a challenge for the tyre industry. Price arbitrage of
natural rubber reduces the competitiveness of the Indian tyre industry in the international
market.
7.6 Tyre Imports from China

China has been experiencing a slowdown in its economy in the aftermath of the global
financial crisis which has adversely affected the automobile industry. Its tyre industry further
experienced a slowdown in 2015 with sales coming down by more than 20%.58 So the tyre
manufacturers in China had no other option but to dump the excess produced tyres. With
USA taking strict actions about the dumping of Chinese imports, India is the next prospective
market for Chinese tyres. Thus, India has witnessed an increase in tyre imports from China. A
DIPP report also emphasises that rubber (tyres) is one of those manufacturing industries that
has been majorly affected by large imports from China.

7.7 Quality of Infrastructure

The Global Competitiveness Report of 2019- 20 depicts India poorly among the BRICS and
other developing countries on the quality of infrastructure with, and ranks it 68th among 141
countries. Lack of adequate physical infrastructure (roads, ports, airports, railways, water and
energy, etc.) has been identified as one of the biggest challenges that India faces. The mid-
term appraisal of the 11th Five-Year plan noted that the country has been adversely impacted
on an average by 1-2% points due to infrastructure bottlenecks. The manufacturing sectors
that are largely dependent up on the availability of infrastructure are hurt. Indian states with
poor infrastructure have not performed well in the manufacturing sector.

8. Atmanirbhar Bharat and Economic contributions of Tyre Industry

The concept of Atmanirbhar Bharat, or self-reliance, was at the heart of prime

minister Narendra Modi’s recent address to the nation. There are parallels between PM
Modi’s message and Mahatma Gandhi’s concept which emphasizes five pillars; Economy,
Demand, Infrastructure, Demography, System. The Indian economy is one of the pillars of
Atmanirbhar Bharat and the contribution of economy towards it is undeniable. The Indian
tyre industry seems to be losing its grip in recent times because of an overall slow economic
movement. The sector is directly impacted by the level of economic activities and the
performance of the domestic automotive industry. The two vital contributors to the sector are
the car and two-wheeler manufacturers and the replacement sales market.

India is the 5th largest auto market in 2019 with sales of 3.81 million units. It was the 7th
largest producer of commercial vehicles in 2019. The two-wheelers segment lead the market
in terms of volume because of a growing middle class and young population. Moreover, the
emergent interest of the companies in exploring the rural markets also aided the growth of the
sector. India is also a leading automobile exporter and has strong export growth forecasts for
the near future. Moreover, with several initiatives by the Government of India and top
automobile companies in the Indian market, it is expected to make India a global leader in the
two-wheeler and four-wheeler market by 2020. Domestic automobiles production increased
at 2.36%CAGR between FY16-20 with 26.36 million vehicles being manufactured in the
country in FY20. Altogether, domestic automobiles revenues increased at 1.29% CAGR
between FY16-FY20 with 21.55 million vehicles being sold in FY20. (Automotive Tyre
Manufacturers Association: Report).
The Government of India and Indian Automotive Industry has come up with a shared vision
plan called “Automotive Mission Plan 2016-26 – AMP 2026”. The AMP 2026 targets to
make Indian Automotive Industry to be the “Engine of the Make in India Programme”. The
goal of AMP 2026 is “where the vehicles, auto components and tractor industry should reach
over next ten years in terms of size, contribution to India's development, global foot-print,
technological expertise, competitiveness and institutional competencies and capabilities”.

AMP 2026 has set some specific targets for the year 2026:
• 12% of the country's GDP (from 7% at present)
• 40% of manufacturing GDP
• Output of Rs. 16,160-18,885 billion for economic growth at the rate of
5.85 7.5%
• 65 million new jobs
• Rs. 7,575 billion of exports

AMP 2026 also pursues to define the trend of the evolution of Indian automotive eco-system,
incorporating the guide path of precise regulations and policies that oversee research design,
technology, testing, manufacturing, import and export, sale, usage, repair and recycling of
vehicles, automotive components and services. The tyre industry as an essential part of the
automotive industry is set to follow the same growth trend and expected to reach Rs. 2,074 -
2,423 billion in the next 10 years (Automotive Tyre Manufacturers Association, 2019).

Fig 8.1 Growth projections of Automotive and Tyre Industry (Billion)

(Source: Automotive Tyre Manufacturers Association Report, 2019)

The tyre industry as the wheels of the movement needs the impetus to be economic and
globally competitive and help the nation sustain its growth over 7%

The multiplier effect of this industry on the economy is much higher due to its direct and
indirect linkage with other sectors of the economy. The estimated output multiplier of the
rubber (tyre) industry is 2.47, which means an increase of 1 in the final demand for the rubber
tyres will lead to an increase of the overall output of the economy by about 2.47 times.

Fig 8.2: Turnover of Tyre Industry (Billion)

(Source: Automotive Tyre Manufacturers Association Report, 2019)

The tyre industry directly consumes inputs from rubber plantation sector and petroleum
industry and has links with ancillary industries, like chemical, capital goods, packaging
materials, etc. It also has other linkages with trade and services of tyre products all over the
country. Hence, when the demand for products from the tyre industry rises, the demand for
the products of these ancillary and other industries will go up, resulting in an indirect impact
on the economy. With increased demand, employment and income also rise which leads to
rise in spending power and hence consumption, culminating in the demand for other related
segments, say consumer goods. In addition, the tyre industry prompts productivity gains
through the use of automobiles which in turn increases individual productivity.

Fig 8.3: Total (direct, indirect, induced) contribution of GDP (crores, %2015-16 GDP)
 (Source: Automotive Tyre Manufacturers Association Report, 2019)

The cumulative economic contribution of tyre industry is assessed to be Rs. 1,57,000 crore,
which is 1.5% of the GDP while considering direct, indirect and induced impact.

8.1 A Productive Industry for the Economy

Faster economic growth rests on high productivity activities for value addition in the
manufacturing sector, which is a key factor. Manufacturing value addition (MVA) is the net
production of a sector and is determined by adding all output and deducting intermediate
input from it, without subtracting depreciation of fabricated assets. It reflects the value
additions that an industry makes. A higher value addition to output ratio indicates: high final
usage of the industry's product and higher investment lows to the industry. Value added
multiplier of the rubber (tyre) industry is calculated to be 3.42. This denotes that the value
addition in the economy because of a Rupee 1 rise in demand for the rubber products (tyre
industry) is almost 3.42 times.

Since tyre industry has a high MVA (21.5%) in the manufacturing sector and has a
corresponding multiplier effect of 3.42, this infers that the total value addition to the economy
due to increase in demand for tyres will be significant. Hence, the tyre industry requires
greater attention under “Make in India” to increase contribution of the manufacturing sector
to GDP.

8.2 Contributing to Employment

The Indian tyre industry is integrated with agriculture and creates a viable value discovery
process through both long-term and short-term price protection to small, marginal and tribal
farmers and also to large farmers. The geographical spread of the natural rubber lowing into
the industry from Kerala to the states in the North East of India is a unique platform for
inclusive and sustainable development across India with natural linkages to local
manufacturing in these areas. India imports nearly 45% of its natural rubber consumption and
any enhancement in output will greatly improve the lives of farmers across the country and
create a higher value proposition for the rubber industry and growth in production and
acreage in the North East States is key to such shift. The tyre industry consumes around two-
thirds of the total Natural Rubber (NR) produced in the country involving over a million
growers (farmers), a majority of them being small and marginal growers.

8.3 Total Factor Productivity Growth

The growth and competitiveness of any industry depends on the efficient use of factors and
resources and on technological progress. This efficiency in the use of resources apart from
factors of production like machines and labour is termed as the total factor of productivity
(TFP). TFP is important to increase the output and improve the industry’s competitiveness in
the domestic and foreign markets. Estimating TFP is important to analyse the performance of
a particular industry or industries over a period of time. The industry has invested in adopting
ways to produce innovative products such as tubeless tyres, environmentally friendly tyres,
greenfield tyres and anti-puncture tyres. India is one of the rare countries globally which has
achieved self-sufficiency in manufacturing a wide range of tyres for all applications.

8.4 Contributing to Foreign Earnings

The tyre industry exports about 9-10% of its total production to over 100 countries and
contributes about 0.53% of the country's total exports with average net foreign earnings for
the last five years being about $ 1.0 billion. Currently, India's contribution to the global tyre
trade is $1.5 billion (1.72%) out of a $80 billion market (Automotive Tyre Manufacturers
Association: Report). The industry is very competitive, and there is still room for tyre exports
from India, where it can increase its share to 4 - 5% when adequately supported. Thus, Indian
tyre industry attracts more foreign investments thereby more foreign earnings which makes
the country more self-reliant.

Fig 8.4: Tyre imports and Exports in Indian market

(Source: Automotive Tyre Manufacturers Association Report, 2019)

Increasing the export competitiveness of this industry has the ability to provide a significant
amount of foreign earnings to the country that will help Government to maintain its current
account deficit.

Conclusion

India is among the fastest growing tyre markets globally, which plays a major role in the
economy of the country. The industry has stable growth projections and turnovers. The
industry provides various job opportunities in many fields ranges from agriculture sector to
the manufacturing sectors of the Country. The industry also attracts many foreign direct
investments thereby more foreign earnings for the country is generated which it contributes to
the Indian GDP and makes the country more self-reliant. As the global supply chain deals
with the disruptions that the Covid-19 outbreak has caused, Indian tyre industry has the
potential to lead in manufacturing on a global level. Accompanied by the new geo-political
conflict the Coronavirus has unleashed, China is fast losing the position as the factory of the
world. The rest of the world is looking for alternatives to China, for sourcing a host of
products, led by nations such as the US and Japan. This could eventually be India’s moment
if it seizes the opportunity by promoting those sectors like tyre Industry, that have earned
wide acclaim. This study identified that tyre Industry has espoused the spirit of ‘Make in
India’ for long. India is one of the few countries that are self-sufficient in manufacturing
practically all kinds and sizes of tyres. Tyre industry sustains a rich and long value chain
which includes millions of rubber growers and those engaged in tyre manufacturing and sales
and services across the length and breadth of India even in remote villages. All these factors
support India’s march towards a self-reliant nation – ‘Atmanirbhar Bharat’.

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