India Two wheeler Tire Market - Techsci Research

1. India Two-wheeler Tire Market By Vehicle Type, By Demand Category, By Radial vs Bias, By Rim Size, By Tire Size, Competition Forecast & Opportunities, 2013 – 2023 M a r k e t I n t e l l i g e n c e. C o n s u l t i ng Published: June2018

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6. P r o d u c tO v e r v i ew ProductDefinition Global tire supplier Michelin defines tire as “A precisely engineered assembly of rubber, chemicals, fabric, and metal, designed to provide traction, cushion road shock and carry a load under varyingconditions.” Classification According to VehicleType Classification According to PriceSegment 6 ©TechSci Research

7. R e s e a r c h M e t h o d o l o gy Market Profiling • In-depth secondary research was conducted to determine top players in the India two-wheeler tire market, overall market size and segmental marketsize. Research& Intelligence Data Collection DataFilter &Analysis Actionable Insights Business Solution FormulatingQuestionnaire • In order to conduct industry experts’ interviews, TechSci formulated a detailedquestionnaire. • Identifying KeyOpinion Leaders • QuestionnaireDesign • In-depthInterviews Developing List ofRespondents A • Recent • Developments • Market Changing Aspects/Dynamics • Government Policies • FinalConclusion Primary Research • List of industry players and industry specialists wasdeveloped. B Desk Research DataCollection C Company Analysis • TechSci conducted interviews with industry experts and industry players for data collection and verification. • MarketParticipants • KeyStrengths DataValidation PaidSources Primary Research Secondary Research • Data obtained as a result of primary and secondary research was validated through rigoroustriangulation. • Factiva • Hoovers • LinkedIn • TechSciInternal Database • Company Website • CompanyAnnual Reports • White PaperStudy • FinancialReports • Investor • Presentations • Regulatory Body • Associations,etc. DataAnalysis • The data was scrutinized using MS-Excel and statistical tools, such as Time Series Analysis etc., to obtain qualitative and quantitative insights about the India two-wheeler tiremarket. 7 ©TechSci Research

8. R e s e a r c h M e t h o d o l o gy BaselineMethodology: For the study, TechSci Research gathered information through primary research surveys with leading tire OEMs operating across the country. We also put through an exhaustive search of credible paid databases, such as Business Week, Factiva, Hoovers, etc., including our internal database. Our team of analysts has then prudently evaluated all the collected information and presented the same in chronological order to depict a meaningful and clear picture of the India two-wheeler tire market. While compiling the data, we have also cross checked all the collected information from multiple sources and data warehouses, so as to present the most accurate and precise information of the concerned industry. Few Sources of SecondaryResearch Primary Research – Partial List of companies Interviewed 8 ©TechSci Research

9. R e s e a r c h M e t h o d o l o gy TireProduction TechSci Research has mapped production capacities of almost all tire manufacturing facilities in India, with the help of a series of primary research surveys of all the major tire manufacturing companies in the country, followed by validation through secondary sources such as company annual reports and industry associations. TechSci Research has been successful in identifying the production capacities of each tire plant as well as their respective plant locations, establishment dates and type of tiresmanufactured. Vehicle Production, Sales & FleetSize Basic data points needed for analysis of India two-wheeler tire market are the historical, current and forecast figures for vehicle production, sales and fleet size. Data for vehicle sales and fleet size has been extracted through various secondary sources and credible data portals. TechSci Research has also maintained a database for vehicle sales and fleet size for two-wheelers, which is regularly updated through various primary research surveys and secondary sources such as automotive associations & governmentpublications. TireDemand OEM TireSales OEM tire demand has been calculated by multiplying the average number of tires per vehicle to the total number of vehicles produced. For example, for two-wheeler segment, the average number of tires is considered to be two and for passenger cars, the average number of tires isfive. 9 ©TechSci Research

10. R e s e a r c h M e t h o d o l o gy Replacement TireSales Replacement tire demand of a particular country is directly dependent on the country’s vehicle fleet size and historical vehicle sales. Replacement tire demand is calculated by multiplying vehicle fleet with replacement tire ratio, which is obtained by conducting a series of surveys with car owners to understand the frequency of tire replacement, as it varies for different countries depending upon the country’s road conditions, climate, economic and regulatory policies, etc. The replacement ratio is expressed as a percentage. For example, in case of two-wheeler, replacement ratio is considered to be 100% if two tires are replaced per vehicle peryear. For instance, for passenger car replacement tire demandcalculation: The calculated replacement tire demand data is further analyzed by TechSci Research through Delphi technique, i.e. multiple rounds of telephonic interviews with two-wheeler tire companies/dealers in India. The information collected was cross-verified through industry experts and secondary sources, such as annual reports and paid databases to generate meaningfulresults. Total Tire MarketForecast Forecast 10 Forforecastingthenumbers,wehaveusedtimeseriesanalysisalongwithregressionanalysis,followedbyjudgmental analysis. ©TechSci Research

11. I n d u s t r yB r i ef According to TechSci Research report, “India Two-wheeler Tire Market By Vehicle Type, By Demand Category, By Radial vs Bias, By Rim Size, By Tire Size, Competition Forecast & Opportunities, 2013 – 2023’’, the country’s two- wheeler tire market is forecast to cross $ 2.7 billion by 2023. In 2016, India surpassed the world’s largest market for two-wheelers, i.e., China, when two-wheeler sales in the country surpassed 17 million units as compared to China’s sales that were marginally short of the 17 million mark. The two-wheeler market in India, in the following year, slashed all records as it crossed the mark of 20 million units for the first time, beating all industry estimates. This growing sales of two-wheelers in India are expected to continue during the forecast period as well, due to which the tire demand for the two-wheeler vehicles is also anticipated to grow at a robust pace in thecountry. The motorcycle segment dominated India two-wheeler tire market with over 60% volume share in 2017. However, a steep rise in the demand for scooters has been registered in the country due to rising number of female drivers, consequently fueling tire demand from the scooter segment as well. With no new model launches in the moped segment, moped tire segment maintained subdued growth in 2017 and the same trend is likely to continue during the forecast period as well. Continuous business expansion of prominent two-wheeler tire manufacturing companies across the country such as MRF, CEAT,TVS, etc., along with entry of new players such as JK Tyres, Bridgestone, Michelin in the two-wheeler tire segment is anticipated to intensify the competition in India two- wheeler tire market over the course of the next five years. For instance, CEAT is ramping up its production capacity for two-wheeler tires in its Nagpur plant. MRF & CEAT are the most recognized two-wheeler tire manufacturers across the country as more than 70% of the respondents expressed knowledge of these brands as per a consumer survey conducted by TechSci Research. MRF grabbed the highest satisfaction level among customers of two- wheeler tires across thecountry. “Increasing urbanization, growing female workforce in rural and semi-urban areas, along with constantly rising fuel prices are among the major factors propelling demand for two-wheelers across the country. Moreover, lack of proper public transportation is further contributing to the growth of two-wheeler industry in India, which is positively influencing the demand scenario in the country’s two-wheeler tire market. Furthermore, India two- wheeler tire market is poised to grow at a brisk pace over the next five years owing to rising preference of citizens towards compact and economical source of transportation i.e. two wheelers.” said Mr. Karan Chechi,Research IndiaTwo-WheelerTireMarket,LedbyMRF,toReach$2.7Billionby2023 11 Director with TechSci Research, a research based India management consultingfirm. ©TechSci Research

12. S a m p l e D a t a - S n a p s h ot Figure 17: India Two-Wheeler Tire Market Share, By Rim Size, By Volume, 2017 Figure 13: India Two-Wheeler Sales, By Volume (Million Unit), FY2013 &FY2023F Figure 1: India Two-Wheeler Tire Market - Factors Influencing Purchase Decision(N=X) BrandName FY FY FY FY FY FY FY FY FY FY FY 2013 2014 2015 2016 2017 2018 2019 2020 2021 20222023 Warranty 10-12 inch 50.00% Two-WheelerSales Figure 33: India Scooter Tire Market Share, By Demand Category, By Volume,2013-2023F 15-19 inch Price 50.00% Recommendation ByDealer 70.00%70.00%70.00%70.00%70.00%70.00%70.00%70.00%70.00%70.00%70.00% InstallationCharges Figure 36: India Scooter Tire Market Share, By Rim Size, By Volume,2017 Figure 8: India Two-WheelerTire Market - BrandSatisfactionLevel, By Frequency of Breakdown (N=X) 30.00%30.00%30.00%30.00%30.00%30.00%30.00%30.00%30.00%30.00%30.00% 2013 2014 2015 2016 2017 2018E 2019F 2020F 2021F 2022F 2023F Replacement OEM Figure 23: Attractiveness 2018E-2023F 7.00% India Two-Wheeler Tire Index, By Vehicle Type,By Market Volume, 50.00 % 50.00 % CEAT Moped 6.00% MRF 5.00% 4.00% Scooter 3.00% TVS 10inch 12inch 2.00% Motorcycle 1.00% 12 JKTyre 0.00% 0.00 1.00 2.003.004.00 Source:XXXXX ©TechSci Research Note: These are dummy figures; please purchase our report for actualdata

13. R e p o r tO r d e r i ng Report Name: India Two-wheeler Tire Market By Vehicle Type, By Demand Category, By Radial vs Bias, By Rim Size, By Tire Size, Competition Forecast & Opportunities,2023 ReportPrice To View Sample OR PurchaseReport 13 ©TechSci Research

14. A b o u tU s & D i s c l a i m er AboutUs TechSci Research is a global market research and consulting company with offices in the US, UK and India. TechSci Research provides market research reports in a number of areas to organizations. The company uses innovative business models that focus on improving productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry- specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in themarket. RelatedReports India Two-Wheeler Tire Market Forecast & Opportunities, 2022 Malaysia Tire Market Forecast & Opportunities,2022 Brazil Retreading Tire,2022 Partial List ofClients Disclaimer The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSciResearch. TechSci Research – NorthAmerica 708 Third Avenue,Manhattan, New York, UnitedStates Tel: +1- 646- 360-1656 Email:sales@techsciresearch.com www.techsciresearch.com TechSci Research –Europe 54, Oldbrook, Bretton, Peterborough, UnitedKingdom Email:sales@techsciresearch.com www.techsciresearch.com TechSci Research –Africa B – 44, Sector -57, Noida,National Capital Region, U.P. -India Tel:+91-120-4523900 Email:sales@techsciresearch.com www.techsciresearch.com 14 ©TechSci Research