Updated January 28th, 2024 at 13:02 IST
CEAT to capitalise on rising sales of passenger vehicles
CEAT is preparing to enter the passenger vehicles and truck and bus radial (TBR) tire market in the United States in the first quarter of the next fiscal year.
CEAT sales strategy: CEAT Ltd, a tire manufacturer, aims to capitalise on the rising sales of passenger vehicles in India, anticipating increased demand in the replacement market. Arnab Banerjee, the Managing Director and CEO expressed confidence in the trajectory of the market, citing the record-high passenger vehicle sales of 41.08 lakh units in 2023, driven by SUVs.
Banerjee highlighted the positive impact on the replacement market, noting that the growth in original equipment manufacturer (OEM) sales is favourable for the replacement segment. He emphasised the company's strategic focus on gaining market leadership in the passenger cars and utility vehicles (PCUV) segment.
CEAT is preparing to enter the passenger vehicles and truck and bus radial (TBR) tire market in the United States in the first quarter of the next fiscal year, aiming to establish its international business as a growth engine.
''Half of the cars (PVs sold) are SUVs. The tyres are larger in size with higher margins. They are margin accretive. We are quite bullish on passenger vehicle tyres. We are investing heavily in R&D and in marketing as well. Yes, the (PV) market growth is good news for the tyre industry in general and for CEAT in particular,'' Banerjee said.
CEAT plans to invest significantly in research development and marketing for passenger vehicle tires, aiming to achieve market leadership in the growing PCUV segment. The CEO also expressed optimism about the international market, citing the upcoming launch in the United States, where CEAT is set to introduce passenger cars, utility vehicles, and truck and bus radial tires.
Regarding the outlook for the remainder of the fiscal year, Banerjee expects a better performance in the replacement market in February and March, with January traditionally being a slower month due to winter. CEAT intends to continue pushing for market share in the passenger categories and anticipates improvements in OEM sales in the fourth quarter. However, there are some challenges in the European markets due to economic headwinds caused by a recession.
(With PTI inputs)
Published January 28th, 2024 at 12:28 IST