The major market for Tyres in the Indian Truck and Bus industry is replacement tyres. The replacement tyre is roughly common at 63%, OE at 20%, and export at 17%. After a trade deal with multiple countries, the export of the tyre could grow significantly in the next couple of years significanly.

Radialization is gaining popularity in the heavy-duty commercial vehicle segment, and it is expected to reach 70% over the next 5 years. Every Truck and Bus Sub segment has a different level of radial tyre adoption rate due to its different application, suitability, purchasing power, and requirements. The growth in multiple-axle truck sales and better road conditions are key drivers behind this excellent growth.

This segment’s performance depends on various parameters, such as high replacement cycles, economic indicators, freight rates, Road conditions, Overloads and payloads, and customer types and payment flexibility.

Recently, BKT Tyre also entered into this high-value segment. Some segments have a low entry barrier for the company, such as the Heavy Duty Tipper segment. On the other hand, Continental Tyre decided to leave the HCV segment in India due to several entry barriers.

The ACG Indian Commercial Vehicle Tyre dahsboard provide following benefits:

Strategic Market Intelligence:

Commercial vehicle and Tyre Market Share tracking:

• Real-time tracking of market share gainers and losers of OEMs, Vehicle Type, Models, Variants,  Tyre Type, Tyre size, and Application.
• Competitor move, launch a new tyre, and predict the movement
• Axle Load Pattern Analysis

Strategic Business, Price analytics and Product Planning:

• By having multiple factors and their impact on the Indian CV Tyre Industry. Tyre companies can make a decision based on the real-time actionable insight
• Our dashboard converts complex data into actionable insights and provides clear predictions for the future across various scenarios.
• Based on the application trend, Fuel type demand, and the adoption or penetration curve, the new tyre launch changes the market share scenario
• SKU Rationalization: Mapping with product portfolio, find the gap, missing segment, and fill the product market gap effectively
• Tyre Type trend in real time. How is the radial tyre segment share increasing across tyre size segments? This real-time tracking help for allocate the budget, customer acquisition, and R&D investment
• Track the high growth segment and high profit margin tyre size
• Live and adjusted forecasts help to schedule the production plan
• Live, updated MOP pricing and discount trends, along with product positioning by tyre size, help inform decisions on price adjustments.
• Justify the  offering of different SKUs

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The application of the Truck and Bus is the key to selecting the tyre type and brand. The Truck Application-wise data covers Overload and payload truck-use pattern data.

The survey discloses the brand image and reputation of the Tyre brands like

• MRF Tyre
• JK Tyre
• CEAT Tyre
• Bridgestone Tyre
• Michelin Tyre
• Apollo Tyre
• BKT Tyre, and
• Chinese Brands

Indian Tyre Brand and Go-To-Market Strategy:

This tyre brand image directly affects purchase decisions across the various fleet-owner segments. BKT tyres Brand is highly relevant among fleet owners, especially in the Tipper segment. Below is the Brand relevance map of BKT Tyre:

This survey helps to define the target segment for various tyre sizes and types. Most of the fleet owners tried to find new entrants like BKT Tyre in this segment. BKT Tyre is already the leading player in off-road heavy vehicles. Leading players like MRF and Apollo Tyre are also facing image issues, as most fleet owners have been using these tyres for a long time.

Tyre Buying Behaviour: Tyre Brand Identity and Image

Since use, Replacement cycle, Business model,  and load patterns differ, the purchase journey is also different for the Truck and Bus segments.

JK Tyre has a strong identity for its quality in the radial Tyre segment. Apollo and MRF are known for a balance between Price and performance. The Truck Tyre replacement market is evolving rapidly. Customers are looking for a competitive price, but long life and after-sales support from the tyre manufacturer. Companies like Continental Tyre decided to leave this segment due to high costs, dealer networks, and limited engagement with fleet owners.

It is key to understand the challenges, buying criteria, customer engagement, relationship-building, and competitive offerings across various customer segments. Our latest survey decoded it.

Willingness to Pay:

Brand reputation and trust play a significant role in fleet owners’ willingness to pay. Price is an essential attribute in the Tyre segment, as multiple tyres need to be replaced during a specific cycle. However, for Small and Medium fleet owners, payment terms and customer relations are highly valuable in the Indian Tyre Industry.

Fleet owners with premium fleets, such as Volvo long-haulage, prefer Michelin Tubeless Tyres because they offer better returns and a strong value proposition, even though they are more expensive than other brands. The customer still believes they could prefer Bridgestone tyres or consider it under the first filter, Brand relevance, if this brand meets certain expectations.

Only 20% of fleet owners consider driver opinion before buying tyres; however, drivers have a fair idea of tyre quality and performance. But they do not have price and discount information.

Tyre Dealers are one of the most influential if they they a multi-brand dealership and the owner type is driver cum owner.  Some dealers are heavily promoting Chinese brands in India by offering attractive discounts and guaranteeing tyre reliability and durability.

The challenges and opportunities have been identified through this survey for Tyre Brands companies.

Some of the questions as part of the Indian Truck Tyre survey:

• Why fleet owners buy: MRF Tyre, JK Tire, CEAT Tyre, Bridgestone Tyre, Michelin Tyre, Apollo Tyre, BKT Tyre, and Chinese Brands
• What is the price point they are expecting
• Who is the decision maker
• Application of the vehicle and load pattern
• Choosing between Radial and Bias tyres
• Brand perception of the different tyre brands
• Customer loyalty
• Tyre purchase plan

Survey Participation:

• Fleet Owners – Truck and Bus: Owner cum drivers, Small, Medium, Large, and Corporate
• Truck drivers: All types of drivers
• Types of Trucks: Tipper, Rigid Haulage, Tractor Trailer, and Special Truck Type
• Truck segment: Mini, Pick up, Light Duty Truck, medium Duty Truck, and heavy Duty Truck
• Other: Procurement managers of Fleet or logistic companies and OEMs procurement managers
• Tyre Dealers of all major cities

The post Indian Truck and Bus Tyre Customer Survey appeared first on Autobei Consulting Group.

The tyre replacement market is a significant segment of the new, retreated, and replacement tyre industry. The growth and market size of replacement tires depend on the truck’s application and loading pattern.

Five expectations from Tyre Brands:

• Driving Safety
• Operating Characteristics
• Comfort
• Economy, and
• Environmental

We have covered over 50 Truck applications and mapped them with the Tyre market’s overload and payload transport practices.

The Tipper, Multi-Axle Truck, and tractor-trailer are the significant segments in the Medium and Heavy Duty Truck segments. Our report gives macro-level Tyre size market share, Growth, and market size for each segment of truck and Bus.

ACG is the only Consulting firm that provides Tyre size-wise sales, Market share, and forecast. After introducing new load norms, 10R20 was replaced by 295/90R20. Today, 295/90R20 is the largest tyre size. More than 25 Tyre sizes, including 11R20, 11X20, 8.25R16, and 10.00X20, are included in each truck segment of the Truck and Bus application.

The tyre’s Radialization also depends on the Truck Application. It is forecast that radicalization will be around 65 to 70 percent by 2027. Almost all new tractor-trailer Truck models come with radial tyres option. However, some fleet owners, like Container, still trust ply tyres for truck applications like E-commerce and Parcel. Heavy Tipper has a small tyre replacement cycle. Specially in sand and coal mine applications. These are the primary demand drivers of this segment.

The buying patterns of each customer segment are different. For example, Small  & Medium truck fleet owners want at least 1 to 3 months of credit, while large fleet owners want a heavy discount on bulk purchases.

Due to the heavy margin available, some tyre dealers advocate selling Chinese Tyres to fleet companies. Some mining customers also use Chinese tyres in their tippers. The market share of Chinese Tyres is around 1.5 to 2%.

MRF has a rich portfolio that covers maximum price points to cater to different Truck segments. Apollo Tyre is a bit expensive compared to market leader MRF, but its rubber is soft and does not get sharp cuts.

There are three types of pricing existing in Indian Tyre Industry:

• Retail
• Institutional Sales
• Tender

The pricing is different for each above segment. Our reports cover all three types of price points.

Bridgestone comes in the Premium tire segment.  JK Tyre recently launched an awe-inspiring ad campaign that comes in the customers’ eyes. It connects with all types of fleet owners.

CEAT and Goodyear Tyres have low tire penetration in the Indian Truck Tyre market compared to MRF and Apollo Tyres.

Some fleet owners prefer to have a Continental tire for specific applications.

Key Highlights of the Report:

• Indian Truck market trend and forecast on rated payload and overload pattern
• Tyre market size – Overload vs rated load
• Radialization of trend and forecast of the following Truck segment:
  • ICV
  • MCV
  • MAV
  • Tipper, and
  • Tractor Trailer
• Key Tyre Sizes with Pattern by units (In M) and value (in M USD)
• Potential Tyre Market Trend and Forecast – FY 2018 to FY 2029
• Actual Industry Tyre Sales last five years
• Tyre size level trend and forecast
• Tyre size wise Sales Volume, Market share, growth, and Forecast of ICV, MCV, Tipper, and Tractor tractor-trailer truck segment
• Tyre pockets: East, North, South, and West India
• Projection for the next five years
• Radialization
• 45 plus Key Truck Applications and Tyre market size
• Fleet owner Tyre survey
• Market breakup of Bias and Radial Tyre
• Application wise Tyre potential
• Key players for each Tyre size – Competition
• New sizes in each Tyre group with the potential for five years
• Truck model on which each Tyre size is fitted
• No. of Tyres and Axles per truck model
• OE trend for each Tyre size
• List the price for each tire size per brand
• MOP for each Tyre size per brand
• Tyre Dealer price and margin
• Indian Tyre Segmentation- segment size, future trend, and others
  • Premium,
  • Value, and
  • Budget Segment
• Supportive data – Model Application level, overload, and Rated payload data.

The report is beneficial for Tyre manufacturers on the following points:

• Tyre Business planning
• Sales planning
• Production plan and schedule
• Raw material procurement
• marketing plan
• Target group of Truck fleet owner segment

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