Leading tyre maker CEAT has chalked out ambitious growth plans to consolidate its position in the two-wheeler tyre segment, increase market share in car and truck and bus radial tyre segments and grow exports three-fold over the next five years.

The Mumbai-headquartered company has indicated that it will strive to increase its market share in two-wheeler tyre market from 28-30 per cent now to 30-35 per cent over the next five years.

“We are enhancing our product range in the 2W segment and moving our mix towards premium products. We have the highest number of direct touch points in the distribution network, which is at least 5X of the nearest competition. We would leverage our distribution network to grow further in this segment,” Arnab Banerjee, Chief Operating Officer, CEAT, told BusinessLine .

He said that while innovative products such as puncture safe tyres were winning more customers, best-in-class service for trade partners and being a preferred brand among OEMs also supports two-wheeler segment growth.

In the passenger car radial (PCR) segment, it is aiming for one-fifth market share over the next five years, up from about 13-14 per cent in FY21. Its share in the OEM segment is expected to reach 20 per cent by FY23, from 15 per cent in FY21 and this is expected to be a major driver to boost replacement share.

More retail presence

“In the PCR business, we are expanding our retail presence by adding another 150 exclusive CEAT Shoppes, taking the count to 500 in the next two years. We have also launched a new exclusive retail format Tyre Stop for Tier 2/3 cities. We have gained entry in many new OEMs last year especially in the bigger vehicle models and have a healthy pipeline of RFQs. Also, we are ramping up our Chennai factory capacity for passenger car radials, said Banerjee.

While the company is investing heavily in digital to provide convenience to the customer across all touchpoints, it is also targeting to boost share in the 15”-inch plus premium segment by offering differentiated products. It will be launching new range of products this fiscal, while the company’s brand ambassador Aamir Khan is expected to bring more brand visibility.

In the truck and bus tyre segment, the company claims a market share of about 7 per cent in TBR (truck and bus radial) segment, while its share in TBB (truck and bus bias) segment is at about 13 per cent. CEAT aims to grow the TBR market share to 13-15 per cent in the next five years aided by new capacity additions and unique service model for fleet customers.

Enhance TBR capacity

“CEAT’s strategy to gain market share is driven by product and innovative services. Its TBR tyre performance is comparable with the best but is priced 1-2 per cent lower than the market leader. It is working with fleet operators to demonstrate lower cost per km for its tyres. The planned TBR capacity addition will support its market share targets,” says an analyst at Motilal Oswal Securities.

Banerjee said CEAT is investing ₹12,00 crore at its Chennai factory to increase TBR Capacity to 190 tonnes per day capacity in two phases in the next 4 years. PCR capacity is being enhanced from 870,000 in FY21 to 1,450,000 units a month by FY23. Two and three-wheeler capacity is being increased from 33,04,000 units a month to 41,65,000 units a month.