Ceat targets 12% market share in TBR segment

CHENNAI: Tyre major Ceat is targeting a market share of 12% in the Truck Bus Radial (TBR) segment over the next two years, its MD and CEO Arnab Banerjee said.

The number four player in the domestic tyre market, Ceat manufactured more than 48 million tyres in FY24. The company posted a turnover of Rs 11,893 crore during the same fiscal (2023-24) and is looking at a top line revenue of Rs 17,000 crore over the next three years.

Briefing reporters here, Banerjee said, the market share of in the TBR segment 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 in Sriperumbudur on the outskirts of Chennai with the inauguration of the new truck bus radial (TBR) production line.

Setup with an investment of Rs 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 would emerge as the largest plant among Ceat's six plants in the country, he said the factory would 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.

Asked if there was any move to increase tyre prices, he said the hike in natural rubber price was unprecedented. “There should be a 1%-2% (increase in tyre prices). But when it will happen depends on competition," he added.

Ceat caters for various segments such as 2 and 3-wheelers, passenger and utility vehicles, commercial vehicles and off-highway vehicles.