Let’s first check the demand patterns and need for the tyres, here we find
Let’s first check the demand patterns and need for the tyres, here we find that demand is on an increase because automotive industry is showing rocking performances. Secondly we see that this industry corresponds to the demand factors of many other industries where transportation serves as a basic need. Finally, we come to know that the processes connected with the manufacturing and the procurement of the tyres have become easier to access and this is why local companies are also mushrooming in the market and started a price war.
There is another scenario attached to the same picture. Organizations concerned with the environmental safety are busy in finding out other solutions where they can keep a check on the emission norms that this industry sector is violating. During the 50’s of the previous centenary, tyre industry witnessed a revolution of sorts when they replaced natural rubber used in tyres with vulcanized rubber. The industrial process associated with the vulcanized rubber brought down the cost of the processes quite considerably and this is where local players flourished big time.
Things were fine but after a point the need for the cut down in the emission norms came in existence. Right now the industry is working on two lines, first they are searching for a machinery that bring down the emission, secondly they are in search for some materials that can partially replace vulcanized rubber. Government sector on the other hand is planning to impose heavy taxes on the industry and bring the uses in a permissible limit. The war between the conventional modes of the transport and the unconventional mode of the transport is on the rise. The next stage of this war can bring in some twists in the tale of tyre sector. In any case, it is a promising sector for long term goals when we check its growth in the terms demand related metrics.