Global Tire Industry: A Case Study

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Tires’ demand arose predominantly in the two areas of Original Equipment Manufacture (OEM) and replacement. The OEM demand dwindled with the manufacture of automobile and construction equipments while the on-road vehicle population, road conditions, etc., played a role in the fluctuating demand for replacement tires. The global tire market, which slumped due to the recession of late 2008 and 2009, soared in 2010 by nearly 20%.ii However, the global tire industry, which was valued at US$140 billioniii in 20102011– with the replacement market accounting for three-forth of the total sales – was expected to grow at an average rate of 13%. The top three companies – Japan‘s Bridgestone (16.2% market share), France‘s CampagnieGenerale des Establissements Michelin2 (Michelin) (15.5%) and US‘s Goodyear Tire & Rubber (12.4%)iv – accounted for 44% of the global sales. US‘s Continental Tyres, Pirelli of Italy, and Sumitomo of Japan were the other major players in the global tire market (Refer to Exhibit I for the list of world’s top 10 companies). While mature markets accounted for 70% of the demand, over the next five years (2011–2016), the demand was expected to come from fast growing newer markets, which included China and India. Sensing the…show more content…
MRF (3032%), Apollo Tyres (20-22%), JK Tyres (15-16%), and CEAT were the major players and they accounted for 63% of the total industry turnover of Rs.3 250 billion in 2009-2010vi (Refer to Exhibit II for the competition among top Indian tire manufacturers). Modi Rubber, Kesoram Industries, and Goodyear India, with 11%, 7%, and 6%vii share respectively were other key players. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS-Srichakra, Metro Tyres, and Balkrishna Tyres were some of the other players in the industry which manufactured various segments of tires (Refer to Exhibit III for segmental market share among key Indian

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