In a strategic move to capitalize on the surging sales of passenger vehicles (PVs) in India, CEAT Ltd, a prominent tyre manufacturer, aims to bolster demand in the replacement market. Arnab Banerjee, the Managing Director & CEO of CEAT Ltd, emphasized the company’s commitment to gaining market share in the PV segment, with plans to enter the passenger vehicles and truck and bus radial tyre market in the United States in the first quarter of the next fiscal year.
Banerjee highlighted the record-breaking performance of PV sales in India in 2023, reaching 41.08 lakh units and growing by 8.3% compared to the previous year. The surge was primarily driven by the popularity of SUVs, which accounted for nearly half of the total dispatches from manufacturers to dealers.
CEAT’s focus on the replacement market is underscored by Banerjee’s comment that incremental gains, even if small, contribute to the company’s overall share growth. Expressing the company’s ambition, he stated, “We want to achieve market leadership in PCUV (passenger cars and utility vehicles), in a growing segment.”
Additionally, Banerjee identified two significant industry trendsโelectrification and premiumisationโthat align with the company’s goals. He believes these trends will positively impact tyre makers in the coming years.
While acknowledging the challenges in the international market, Banerjee sees significant growth potential, especially with CEAT‘s planned entry into the US market. The company is set to launch passenger car and utility vehicle (PCUV) as well as truck and bus radial (TBR) tyres in the US, marking a substantial expansion of its international footprint.
Commenting on the overall outlook for the fiscal year, Banerjee expressed optimism about the replacement market’s performance in February and March, anticipating improvement compared to the relatively low activity in January, influenced by winter conditions. He emphasized CEAT’s commitment to pushing for market share in the passenger categories and anticipated positive developments in the original equipment manufacturer (OEM) sector in the fourth quarter.
As the company navigates international expansion, Banerjee acknowledged some challenges in Europe due to economic headwinds caused by the recession. Nevertheless, he remains optimistic about the potential for sustained growth in the global market.
CEAT Ltd’s strategic initiatives align with its vision to establish a strong presence in both the rapidly growing Indian market and key international territories, positioning itself as a major player in the global tyre industry.
