In 2019, the global two-wheeler tyre market stood at 453.15 million units, while the Indian market share was 90.14 million. The global market is expected to grow at a CAGR of 9.81% until 2025, projects a study by TechSci Research. The Indian growth rate would be at a CAGR of 12.31% during the forecast period..

The rise in demand for two-wheelers, expanding two-wheeler fleet size, and more importantly, increasing in per capita income of the population across the globe are the major factors contributing to the growth of two-wheeler tyre market. An increase in sales of two-wheelers and government initiatives to supplement the growth of electric two wheelers are fuelling the growth of the two-wheeler tyre market globally, the latest research findings by leading market analysts TechSci Research say.

Many people in urban cities choose two-wheelers rather than cars to avoid traffic for timesaving. Moreover, an increase in affordability of motorcycles along with many available finance schemes and EMI options have also augmented sales of two wheelers. Secondly, rise in consumer’s buying capacity and obsession among youth for two-wheelers are the main reasons for growth in demand for two-wheeler, which is further creating demand for two-wheeler tyres.

Increasing usage of the motorcycles as a more suitable mode of transport compared to public transport and extensive usage in business activities by various e-commerce companies are other major factors driving the growth of two-wheeler tyre market. Regular and increased use of two-wheelers is expected to increase the rate of replacement, which in turn is anticipated to positively influence the demand for replacement tyres used in motorcycle, scooters, and mopeds, etc.

Big players: India, China

Globally, the two-wheeler market is majorly dominated by the Asia Pacific. Two of the major countries that are the prominent player in the Asia Pacific region are India (largest player in the world) and China. Thus, these countries account for the highest number of sales in two-wheeler (India 2019 sales were 21 million and China 2019 sales were 16 million) as well as two-wheeler tyres. Both counties account for over more than 80% in the global two-wheeler tyre market. Other emerging markets for two-wheeler tyres include Indonesia, Vietnam, Japan, Thailand, etc.

Globally, electric and conventional two-wheeler manufacturers are paying more attention to the increasing demand for two-wheelers from various commercial sector. Motorcycle manufacturers are producing motorcycles for commercial demand in many regions. Major demand has been witnessed in regions such as Africa where bikes are a commonly used mode of transport for taxi services. Hence, an overall increase in the sales of two-wheeler bike taxis is expected to boost the sales of two-wheeler tyres.

One more major factor that has been augmenting demand for two-wheelers across the globe is poor road conditions in many countries in Asian and African regions. A large demand for two-wheelers comes from the countries in the Asia-Pacific region from countries such as India, China, Bangladesh, Vietnam, Indonesia, etc., where the road infrastructure is not properly developed, which is promoting adoption of motorcycle compared to cars and other four-wheelers. Poorly constructed and broken roads are also one of the reasons for the replacement of tyres before the expected run time. This are some of the factors fuelling the demand for two-wheeler tyres across these regions, the study report points out.

Corona factor

Additionally, the outbreak of coronavirus had a high impact on the two-wheeler industry resulting in fall in the demand of two-wheelers, which has further led to decline in sales of two-wheeler tyres. Many of the major global two-wheeler manufacturers companies such as Hero MotoCorp, TVS, Bajaj Auto have stopped manufacturing for a month or more in many of the big countries such as India, thereby witnessing a slowdown in the production and sales of two-wheelers. All these companies have faced the demand contraction, which is expected to continue over the coming years due to which, companies are facing a decline in sales, compared to previous year, every month. The sales currently are only being driven by limited customers, who are trying to avoid public transport, especially the office and business users but this is not enough for the companies to sustain in the global market. After COVID-19 lockdowns is lifted, companies are expecting two-wheeler sales to recover to somewhat pre COVID-19 sales levels. Thus, this would directly impact the market for two-wheeler tyres also.

The demand for a two-wheeler tyre originates from two sectors – Original Equipment Manufacturer (OEM) and replacement demand for tyres. Additionally, global expansion of two-wheeler sales networks by major two-wheeler manufacturers to target those countries where they have less presence, increasing purchasing power of people in developing countries and preference for two-wheelers over other vehicles due to underdeveloped road infrastructure, especially in developing countries is expected to boost the demand for OEM tyres as two-wheeler sales increase. On the other hand, due to the consistent increase in the fleet size of motorcycle, scooters and mopeds is expected to fuel the demand for replacement tyres for two-wheelers.

The TechSci Research study says that in the global two-wheeler tyre market, replacement tyre demand held a dominating market share of around 72.11%, which is projected to reach 73.38% by 2025. Analysing the global market share of two-wheeler tyres by vehicle type, scooters and mopeds tyres hold major market share among two-wheeler tyres followed by motorcycle tyres. This is due to the increasing usage of scooters and mopeds for private transportation by majority of population such as for office goers, college students, etc.

Major players

The global two-wheeler tyre market is dominated by many big players. Many companies operating in the global two-wheeler tyre market are strengthening their dealer/distributors networks and also focusing on customer requirements for different driving conditions. Major companies operating in the global two- wheeler tyre market include MRF, Giti Tyre, Hangzhou Zhongce Rubber, TVS Srichakra Limited, CEAT Limited, Michelin, Continental, etc.

Asia-Pacific has become a leading manufacturing and consumption hub for two-wheeler tyres owing to the largest fleet size and highest sales in the world. Additionally, the region holds the largest market share in the market. It is anticipated that the market share of the region in two-wheeler tyres market is expected to reach 89.02% by 2025 from 88.30% in 2019.

The global two-wheeler tyre industry is anticipated to exhibit significant growth during the forecast period as new manufacturers are entering the tyre as well as two-wheeler industry, income of the population is increasing, urbanisation is on the rise, global manufacturers are expanding their market presence across the untapped areas, etc. These factors are anticipated to supplement the sales of two-wheelers and two-wheeler tyres across the globe until 2025.

Indian scene

According to the TechSci Research report, in 2019, India two-wheeler tyre market stood at 90.14 million units and is expected to grow at a CAGR of 12.31% during the forecast period.

The scooter tyre market is increasing quickly in India over the last few years. An increase in the number of working females is also rising the demand for scooters as it is a user-friendly vehicle. And further is also adopted by many commuters due to easy driving and stock carrying capability.

The government is also taking initiatives for people, which is also driving the sales of two-wheeler in some southern states of India which is directly impacting the tyre industry, says the report.

Additionally, the government took steps and have introduced a program known as Amma bike schemes, which focuses on every working woman in Tamil Nadu for providing a subsidy of 50% i.e., up to INR25,000 on purchase of two-wheelers. Therefore, sales of two-wheelers in the states have gone up after the introduction of this scheme.

India electric two-wheeler market is growing continuously owing to government’s support and some subsidies which come under “FAME India” scheme and phased manufacturing programme (PMP), which will help promote the manufacturing of electric vehicles domestically. To provide further boost to electric mobility and to enhance and promote the development of electric vehicles, the government has further reduced basic customs duty on electric vehicles and their assemblies, parts, and subparts. In India, electric two-wheeler manufacturers are diverting their focus on research and development to manufacture technologically advanced and affordable electric two-wheelers, which is further expected to drive the electric two-wheeler market in India during the forecast period. This is expected to lead to robust growth in India two-wheeler tyre industry as well.

The lockdown that was put by the Government of India in March 2020 to restrict the COVID19 spread in India has affected the two-wheeler industry resulting in dropping down the sales of two-wheelers over the last 3 months. However, the two-wheeler industry is likely to recover slowly as the lockdown restrictions have been eased by the government but the overall market will take at least next year to recover.

Analysing the market share of two-wheeler tyres in India, motorcycle tyres hold major market share among two-wheeler tyres. This is due to the usage of motorcycles in private mode of transportation by most middle class and lower middle-class population, by delivery services, by restaurant delivery services and also, motorcycles are the most commonly used sharing bikes by most of the ride hailing companies such as Uber bike and Ola bike for transportation services. Scooters and mopeds which are majorly used by girls are comparatively less in numbers than motorcycle users but in future, the trend is expected to change as more population is shifting toward the scooters and mopeds as they are easy to handle and also gearless, which provides convenience in Indian traffic.

ENDS

Apollo Tyres Ltd has secured a one-season shirt-sleeve sponsorship agreement with AS Monaco, one of French football's most successful clubs, to increase awareness for its premium Vredestein brand.

This partnership will leverage Ligue 1's ranking as the fifth most watched football league in the world to raise awareness of Vredestein's award-winning products among a large audience in France and abroad. On November 22, AS Monaco's home league game against Brest will have the new sleeve branding for the first time. The Vredestein brand will be heavily promoted at Stade Louis-II for the 2024–2025 season, including on player sleeves and LED screens around the field. Exclusive social media initiatives will further help make the brand prominent, reaching a large and interested audience.

Yves Pouliquen, Vice President – Commercial, Europe, Apollo Tyres, said, “This partnership is an exciting opportunity to strengthen Vredestein’s presence in one of our key markets. AS Monaco’s rich history and commitment to excellence mirror our focus on performance and innovation. We look forward to building a successful relationship with the club and celebrating its achievements this season.”

Thibaut Chatelard, Marketing and Revenue Director, AS Monaco, said: “We are delighted to welcome Apollo Tyres and its Vredestein brand to the family of AS Monaco partners. This collaboration makes sense in view of the values we share, such as the constant pursuit of performance and excellence. There’s no doubt that this new support will be precious for the rest of our season, which promises to be thrilling.”

Nexen Tire, a leading global tyre manufacturer, has launched the Nexen N´Blue S tyre, adding to its range of summer tyres and providing drivers with advanced safety, energy efficiency and superior driving stability in wet and dry conditions.

Developed using highly dispersed silica and equipped with an optimised structural design, the Nexen N´Blue S tyre provides reduced road noise and improved driving stability. The tyre features an innovative tread compound, formulated with hydrophilic fillers and microstructure-controlled polymers, and provides lower rolling resistance and exceptional dry and wet grip. The tyre also excelled in test results by demonstrating an 11 percent improvement in wet braking distance compared to its predecessor.

Apart from providing excellent performance, the Nexen  N´Blue S also scores high on the sustainability index. The tyre provides an eco-friendly solution for environmentally conscious drivers by minimising fuel consumption and CO2 emissions. The Nexen N´Blue S summer tyre is available in 58 sizes, which makes it compatible with different types of vehicles.

Kumho Tire Vietnam Co., Ltd. is all set to expand its investment project in Binh Duong province of Vietnam, with the phase 3 of expansion commencing in early 2025. This was discussed at a recent meeting between Vo Van Minh, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee (PPC), and Kim Hyun Ho, General Director of Kumho Tire Vietnam Co., Ltd.

The meeting was held on 13 November at the Administrative Centre of Binh Duong province, as per an official statement. Apart from the company’s investment till date and the planned investment for phase 3, the two also discussed about the challenges and obstacles regarding procedures and processes to have more land funds to expand the manufacturing plant, along with taking measures to tackle the obstacles. Kim Hyun Ho also conveyed to the PPC Chairman that Kumho Tire Vietnam Co., Ltd. belongs to South Korea's Kumho Tire Group and is currently ranked 10th in the car tyre manufacturing industry.

The company had invested in a tyre manufacturing plant in My Phuoc 3 Industrial Park in 2007 with a total initial investment of USD 308 million, which was supplemented by another USD 300 million in 2021. This extended the factory scale to six hectares and increased the production capacity to 12.5 million tyres annually. With the expansion in early 2025, the company will raise its total investment to USD 908 million and increase the factory's production capacity to 17 million tyres annually. The expanded capacity is expected to be operational by early 2026.

Yokohama-ATG, a leading manufacturer of all-terrain and off-the-road tyres, has expanded its Galaxy MFS 101 SDS range of forklift tyres with the launch of white, non-marking tyres.

The Galaxy MFS 101 SDS range consists of puncture-proof SDS tyres with extended wear limits designed for high-intensity working shifts and long durability. These are premium, solid rubber tyres developed for tough demands, a long service life and high driving comfort. The addition of white, non-marking tyres is specifically aimed at clean working environments.

Marked by a 3-stage construction process, the forklift tyres feature reduced heat build-up, effective shock absorption and minimised vibrations. The pattern design guarantees a smooth ride and good steerability thanks to its continuous centre lug and circumferential grooves. Furthermore, the flat walls and wide flat profile offer excellent stability when using a forklift for vertical stacking. The tyres are also equipped with anti-slip steel beads for improved rim fitment

In a case study on a CAT 2.5-tonne forklift that was used for handling heavy pallets on asphalt, the Galaxy MFS 101 SDS outshone the competitors with impressive performance. The tyre delivered an approximate 900 working hours before replacement against competitors’ 500 working hours.