OTR tyre market looks positive in 2021
Equipment

OTR tyre market looks positive in 2021

The off-the road (OTR) tyre market in India would continue to grow in 2021 and in coming years as India plans to invest $1.4 trillion on several infrastructure projects by 2025 including projects related ...

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The off-the road (OTR) tyre market in India would continue to grow in 2021 and in coming years as India plans to invest $1.4 trillion on several infrastructure projects by 2025 including projects related to ports, railway, roads, etc, according to TechSci Research. “The Government of India has also partnered with Japan for infrastructure development in north-eastern states of India. All these activities are going to increase the use of OTR vehicles in the country over the course of next 5-10 years, which is further going to augment demand for OTR tire in OEM as well as replacement segments, with later witnessing higher growth due to expanding OTR vehicle fleet,” says TechSci Research. In 2020, Indian OTR vehicle tyre market stood at 9.60 million units in terms of volume. The share acquired by the agri machinery in India is 59.51 per cent by 2020 while the share of mining and construction segment stands at 37.24 per cent and is going to increase in the coming years, according to the research firm. The replacement market is rising with continuous increase in the fleet of OTR vehicles. In 2020, the replacement market share stood at 60.59 per cent while the OEM market share was 39.41 per cent. Demand drivers With reference to the various development activities taken up by the government, the OTR tyre market is expected to gain majorly in the coming years as TechSci Research highlights the major demand drivers as: Growth in infrastructure: Increasing population and rising urbanisation are boosting the infrastructure projects landscape. With upcoming and ongoing projects, the construction sector is the third largest contributor to the economic growth. Government initiatives: The Indian government is taking steps to boost construction activities across the country. The National Infrastructure Pipeline (NIP), the Affordable Rental Housing Complex (ARHC) scheme and investments in the industrial sector open great opportunities in the construction sector in 2021. Increase in mining projects: The Ministry of Environment has approved 10 coal mining projects in different states of India. The ministry states that the projects will have an output of 160 million tonnes annually. These projects are going to bring a quick rise in the demand for OTR vehicles, which in terms is directly going to boost sales of OTR in OEM as well as replacement segments. The recent large volume buying in the mining equipment after the pick up in mining activities in the country will also push for more demand for OTR tyres, especially tyres for mining applications in the coming years.

Next Story
Infrastructure Transport

Centre Plans Ring Roads To Ease Urban Traffic

The Central Government is set to prioritise the construction of ring roads, bypasses, and elevated corridors to address urban congestion and improve connectivity across Indian cities. This was discussed at a consultation workshop organised by the Ministry of Road Transport and Highways (MoRTH) on Wednesday, led by Union Minister Nitin Gadkari, with participation from state and union territory representatives.The session focused on draft policies that include the Urban Decongestion Policy, reforms in National Highway administration, and strategies for reusing inert waste from urban landfills in..

Next Story
Real Estate

Brigade Group Signs JDA for Luxury Project in East Bengaluru

Brigade Group has signed a joint development agreement for a luxury residential project in East Bengaluru. Spread over 10.75 acre, the development offers a potential saleable area of 2.5 million sq ft with an estimated gross development value of Rs 25 billion. Strategically located near key commercial hubs and social infrastructure, the project is positioned to cater to modern homeowners and investors. “Bengaluru is our primary market, and this new development reflects our strategic commitment to focus on high quality developments in premium micro markets that combine connectivity,..

Next Story
Real Estate

GST Cuts Brighten Outlook for Real Estate Sector

The Goods and Services Tax (GST) Council’s decision to rationalise rates on key construction materials has sparked optimism across India’s real estate sector, with industry leaders calling it a landmark reform that will ease cost pressures, strengthen affordability, and stimulate fresh demand. “The new GST reform marks a critical turning point for India’s real estate industry. By streamlining the tax structure and lowering GST on essential construction materials like cement, marble, granite, and bricks, we will see a significant reduction in input costs. For developers, this trans..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?