Ceat Targets 12 Market Share in the Next Two Years

Tyre major Ceat is aiming for a significant increase in its market share, targeting 12% over the next two years, according to Arnab Banerjee, the company’s Managing Director and CEO. Ceat, currently the fourth-largest player in the Indian tyre market, produced over 48 million tyres in FY24.

The company achieved a turnover of INR 11,893 crore during FY24 and has set a target of reaching INR 17,000 crore in revenue over the next three years.

Recent Market Share Growth

In a press briefing, Banerjee highlighted that Ceat’s market share has already increased by 1%, from 7% to 8% in recent months. "Our immediate milestone is to reach a market share of 12%-13% within the next two years. 

This growth will be driven not only by the replacement market but also by increased Original Equipment Manufacturer (OEM) partnerships. The start of our new production line at the plant near Chennai will further boost this growth," he said.

Expansion of Sriperumbudur Facility

On Wednesday, Ceat inaugurated a new Truck Bus Radial (TBR) production line at its facility in Sriperumbudur, near Chennai. This expansion, made with an investment of INR 670 crore, will enable the plant to produce 1,500 tyres daily over the next 12 months. The output will be distributed across various segments, with 40% for the replacement market, 35% for exports, and 25% for OEMs.

Banerjee emphasised that the Chennai facility is poised to become the largest of Ceat’s six manufacturing plants in India. He noted that significant future investments would be directed towards this plant, which is primarily focused on exports, particularly to Europe and the US.

Future Price Increases

When asked about the possibility of increasing tyre prices, Banerjee acknowledged the pressure from rising natural rubber costs. "A price increase of 1%-2% may be necessary, but the timing will depend on competitive factors," he said.

Product Range

Ceat manufactures tyres for a diverse range of vehicles, including two-wheelers, three-wheelers, passenger and utility vehicles, commercial vehicles, and off-highway vehicles.