Product Mix And Boosting Demand Driving The Growth Off-Highway Tires Market

Dec-2017 | 99Strategy | Automobile

An off-highway tire, which is one of the crucial segments of the tire market, is drastically witnessing some notable growth owing to better demand rate and high margins. This trend has specifically helped some key players in boosting the growth graphs. One of the renowned players in the OHT manufacturing for mining and farming is the Balkrishna Industries (BKT).

The key factors that are responsible for the flourishing trend are the network expansion, fresh product launches, and pricing advantage. At the present stage, BKT is projecting a volume growth of the 190,000–195,000 Tonne in the fiscal year 2018. In contrast to the year-on-year figure, 185,000–190,000 were the figures, which depict the growth of 13% from 10% in the early year.

BKT volume grew up to 16% in the September quarter, and this achievement can be attributed to 29% growth in the US and 35% growth in the Rest of the World. The high demand from mining industry for the higher sized tire is consequently in providing good traction, which in turn results in the ultimate rise in the figures in September quarter by 6%.

One of the significant reasons responsible for the growth of the global OHT tire market is the constant performance of Trelleborg and Michelin in the past four quarters in terms of revenue. Especially in the past two quarters, Michelin’s specialty tire division has reported more than 20% rise in the revenue growth.

Product mix will also be a responsible factor for the revenue growth in the medium term. The revenue share from vehicle maker is anticipated to reach to 35% from 23%, while on the other side, the revenue share of the tire is expected to spur up to 45% from 35%.

Constant development of new technology in the automotive sector and transmission is one of the prime factors responsible for the growth of the off-highway tires market.