RECENT DEVELOPMENTS AND GROWTH TRENDS IN AUTOMOBILE & TYREINDUSTRY IN INDIA –IMPLICATIONS FOR THE NR SECTOR

Abstract

Automobile Industry is aptly called the 'engine of growth’ for any economy. There has been a steady and definite shift in the axis of Automobile Industry worldwide with, growing role and share of Asia in recent years. Within Asia, the role of China and India assumes significance in scripting the success story of the auto sector. Other countries in the region are also taking strides in the same direction. Automobile Industry has a diverse value chain which spans across several industries, including automotive tyres & other components. Automotive Tyres, having Natural Rubber as its prime raw material, is closely linked to the plantation sector. The NR sector already has a significant footprint in Asia, with ANRPC countries, located primarily in this region, accounting for over 90% of the global NR production. The Presentation traces the impressive growth of auto, tyre and rubber sectors in the major automobile & rubber producing & consuming Regions / countries in general and India in particular. The Presentation also examines the challenges to the synergy between the auto, tyre and rubber sectors that the growth is likely to pose in the future. Relevant indices of auto tyre and rubber sectors are referred to in the presentation to substantiate the points being made. The key objective of the presentations, besides providing insights into these sectors is to invite the attention of the policy makers to create an enabling environment that fosters harmonious, sustainable and accelerated growth of the entire value chain that starts with the rubber tree and ends with the automobile on the road.