Tyremaker CEAT Ltd is looking to grow its market share by up to 16 per cent in the electric vehicle four-wheeler segment.
The company has partnered with Original Equipment Manufacturers (OEM) to develop electric two- and four-wheeler tyres.
“Salience of electric vehicles to overall vehicle production will keep growing. Electric two-wheelers account for more than 20 per cent of the market, and electric four-wheelers, up to 5 per cent. We have partnered with OEMs and aim to have a 15 to 16 per cent replacement market share moving quarter to quarter. Companies are also betting on hybrids along with electric vehicles,” said Arnab Banerjee, MD & CEO of CEAT Ltd to businessline.
In the two-wheeler electric vehicle space, the company has a 40 per cent market share and supplies tyres to OEMs. The company recently introduced a range of steel radial tyres — SPORTRAD and CROSSRAD — in the premium segment and is expecting an increase in raw material prices in quarter four.
Equipped with electric vehicle tyre technology, CEAT is investing to procure the latest manufacturing technology.
“In electric two-wheelers, we have a 40 per cent share of the OEM market . We have the technology to manufacture electric vehicle tyres and do not require a complete change in the manufacturing process. Some equipment requires to be fine-tuned, and we are investing in acquiring new equipment,” added Banerjee.
Mumbai-headquartered CEAT Ltd reported a net profit of ₹181 crore for the quarter ended in December. Revenue from operations grew by 8.65 per cent to ₹2,963 crore in the third quarter, as opposed to Rs 2,727 crore during the same quarter last year.