Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Demand for tyres has gone up despite the COVID-19 pandemic as people now prefer to use personal vehicle instead of shared rides or public transport, in turn driving demand for the two-wheeler-segment, Apollo Tyres stated in their latest press release.


India is one of the largest two-wheeler markets in the world but there is still potential to grow further, the company release said. Since June, India has restricted tyre imports in an attempt to boost domestic production. 


Apollo Tyres commenced a two-wheeler radial and cross-ply tyres facility in Gujarat on Wednesday. The plant will cater to the fast-growing premium segment that constitutes 20pc of the two-wheeler market in India.


The new tyre manufacturing unit will be housed with Apollo’s Limda manufacturing unit in Vadodara, Gujarat. The premium segment is witnessing high growth owing to rapid urbanizations and rising consumer levels, pushing demand for tyres in this category. The facility has an initial monthly capacity to produce 30,000 motorcycle radials and 60,000 cross-ply tyres. The company said that if demand increases, production capacity will be lifted. 


Apollo Tyres also commissioned its fifth plant in India, late June, in Andhra Pradesh. 


Based on the outlook Apollo Tyres projected, demand for zinc oxide should also improve. In the west zone, zinc oxide producers, especially firms in Gujarat are focusing on meeting the demand but rued that demand from across India has dropped drastically. This pushed oxide makers to limit production, resulting in low demand for dross. 


As projected, if the two-wheeler and small passenger cars segment grows especially from the rural segment, then tyre consumption and demand for auto components will increase driving demand for zinc dross, zinc alloys, steel, lead batteries and aluminium alloys.

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