In 2019, the global two-wheeler tyre market stood at 453.15 million units, while the Indian market share was 90.14 million. The global market is expected to grow at a CAGR of 9.81% until 2025, projects a study by TechSci Research. The Indian growth rate would be at a CAGR of 12.31% during the forecast period..

The rise in demand for two-wheelers, expanding two-wheeler fleet size, and more importantly, increasing in per capita income of the population across the globe are the major factors contributing to the growth of two-wheeler tyre market. An increase in sales of two-wheelers and government initiatives to supplement the growth of electric two wheelers are fuelling the growth of the two-wheeler tyre market globally, the latest research findings by leading market analysts TechSci Research say.

Many people in urban cities choose two-wheelers rather than cars to avoid traffic for timesaving. Moreover, an increase in affordability of motorcycles along with many available finance schemes and EMI options have also augmented sales of two wheelers. Secondly, rise in consumer’s buying capacity and obsession among youth for two-wheelers are the main reasons for growth in demand for two-wheeler, which is further creating demand for two-wheeler tyres.

Increasing usage of the motorcycles as a more suitable mode of transport compared to public transport and extensive usage in business activities by various e-commerce companies are other major factors driving the growth of two-wheeler tyre market. Regular and increased use of two-wheelers is expected to increase the rate of replacement, which in turn is anticipated to positively influence the demand for replacement tyres used in motorcycle, scooters, and mopeds, etc.

Big players: India, China

Globally, the two-wheeler market is majorly dominated by the Asia Pacific. Two of the major countries that are the prominent player in the Asia Pacific region are India (largest player in the world) and China. Thus, these countries account for the highest number of sales in two-wheeler (India 2019 sales were 21 million and China 2019 sales were 16 million) as well as two-wheeler tyres. Both counties account for over more than 80% in the global two-wheeler tyre market. Other emerging markets for two-wheeler tyres include Indonesia, Vietnam, Japan, Thailand, etc.

Globally, electric and conventional two-wheeler manufacturers are paying more attention to the increasing demand for two-wheelers from various commercial sector. Motorcycle manufacturers are producing motorcycles for commercial demand in many regions. Major demand has been witnessed in regions such as Africa where bikes are a commonly used mode of transport for taxi services. Hence, an overall increase in the sales of two-wheeler bike taxis is expected to boost the sales of two-wheeler tyres.

One more major factor that has been augmenting demand for two-wheelers across the globe is poor road conditions in many countries in Asian and African regions. A large demand for two-wheelers comes from the countries in the Asia-Pacific region from countries such as India, China, Bangladesh, Vietnam, Indonesia, etc., where the road infrastructure is not properly developed, which is promoting adoption of motorcycle compared to cars and other four-wheelers. Poorly constructed and broken roads are also one of the reasons for the replacement of tyres before the expected run time. This are some of the factors fuelling the demand for two-wheeler tyres across these regions, the study report points out.

Corona factor

Additionally, the outbreak of coronavirus had a high impact on the two-wheeler industry resulting in fall in the demand of two-wheelers, which has further led to decline in sales of two-wheeler tyres. Many of the major global two-wheeler manufacturers companies such as Hero MotoCorp, TVS, Bajaj Auto have stopped manufacturing for a month or more in many of the big countries such as India, thereby witnessing a slowdown in the production and sales of two-wheelers. All these companies have faced the demand contraction, which is expected to continue over the coming years due to which, companies are facing a decline in sales, compared to previous year, every month. The sales currently are only being driven by limited customers, who are trying to avoid public transport, especially the office and business users but this is not enough for the companies to sustain in the global market. After COVID-19 lockdowns is lifted, companies are expecting two-wheeler sales to recover to somewhat pre COVID-19 sales levels. Thus, this would directly impact the market for two-wheeler tyres also.

The demand for a two-wheeler tyre originates from two sectors – Original Equipment Manufacturer (OEM) and replacement demand for tyres. Additionally, global expansion of two-wheeler sales networks by major two-wheeler manufacturers to target those countries where they have less presence, increasing purchasing power of people in developing countries and preference for two-wheelers over other vehicles due to underdeveloped road infrastructure, especially in developing countries is expected to boost the demand for OEM tyres as two-wheeler sales increase. On the other hand, due to the consistent increase in the fleet size of motorcycle, scooters and mopeds is expected to fuel the demand for replacement tyres for two-wheelers.

The TechSci Research study says that in the global two-wheeler tyre market, replacement tyre demand held a dominating market share of around 72.11%, which is projected to reach 73.38% by 2025. Analysing the global market share of two-wheeler tyres by vehicle type, scooters and mopeds tyres hold major market share among two-wheeler tyres followed by motorcycle tyres. This is due to the increasing usage of scooters and mopeds for private transportation by majority of population such as for office goers, college students, etc.

Major players

The global two-wheeler tyre market is dominated by many big players. Many companies operating in the global two-wheeler tyre market are strengthening their dealer/distributors networks and also focusing on customer requirements for different driving conditions. Major companies operating in the global two- wheeler tyre market include MRF, Giti Tyre, Hangzhou Zhongce Rubber, TVS Srichakra Limited, CEAT Limited, Michelin, Continental, etc.

Asia-Pacific has become a leading manufacturing and consumption hub for two-wheeler tyres owing to the largest fleet size and highest sales in the world. Additionally, the region holds the largest market share in the market. It is anticipated that the market share of the region in two-wheeler tyres market is expected to reach 89.02% by 2025 from 88.30% in 2019.

The global two-wheeler tyre industry is anticipated to exhibit significant growth during the forecast period as new manufacturers are entering the tyre as well as two-wheeler industry, income of the population is increasing, urbanisation is on the rise, global manufacturers are expanding their market presence across the untapped areas, etc. These factors are anticipated to supplement the sales of two-wheelers and two-wheeler tyres across the globe until 2025.

Indian scene

According to the TechSci Research report, in 2019, India two-wheeler tyre market stood at 90.14 million units and is expected to grow at a CAGR of 12.31% during the forecast period.

The scooter tyre market is increasing quickly in India over the last few years. An increase in the number of working females is also rising the demand for scooters as it is a user-friendly vehicle. And further is also adopted by many commuters due to easy driving and stock carrying capability.

The government is also taking initiatives for people, which is also driving the sales of two-wheeler in some southern states of India which is directly impacting the tyre industry, says the report.

Additionally, the government took steps and have introduced a program known as Amma bike schemes, which focuses on every working woman in Tamil Nadu for providing a subsidy of 50% i.e., up to INR25,000 on purchase of two-wheelers. Therefore, sales of two-wheelers in the states have gone up after the introduction of this scheme.

India electric two-wheeler market is growing continuously owing to government’s support and some subsidies which come under “FAME India” scheme and phased manufacturing programme (PMP), which will help promote the manufacturing of electric vehicles domestically. To provide further boost to electric mobility and to enhance and promote the development of electric vehicles, the government has further reduced basic customs duty on electric vehicles and their assemblies, parts, and subparts. In India, electric two-wheeler manufacturers are diverting their focus on research and development to manufacture technologically advanced and affordable electric two-wheelers, which is further expected to drive the electric two-wheeler market in India during the forecast period. This is expected to lead to robust growth in India two-wheeler tyre industry as well.

The lockdown that was put by the Government of India in March 2020 to restrict the COVID19 spread in India has affected the two-wheeler industry resulting in dropping down the sales of two-wheelers over the last 3 months. However, the two-wheeler industry is likely to recover slowly as the lockdown restrictions have been eased by the government but the overall market will take at least next year to recover.

Analysing the market share of two-wheeler tyres in India, motorcycle tyres hold major market share among two-wheeler tyres. This is due to the usage of motorcycles in private mode of transportation by most middle class and lower middle-class population, by delivery services, by restaurant delivery services and also, motorcycles are the most commonly used sharing bikes by most of the ride hailing companies such as Uber bike and Ola bike for transportation services. Scooters and mopeds which are majorly used by girls are comparatively less in numbers than motorcycle users but in future, the trend is expected to change as more population is shifting toward the scooters and mopeds as they are easy to handle and also gearless, which provides convenience in Indian traffic.

ENDS

Pirelli has announced the development of specific P Zero tyres for the new hybrid Porsche 911 GTS. This marks the latest collaboration between the tyre manufacturer and the German automaker, extending the availability of P Zero tyres across the entire 911 range.

The tyre maker states that it has engineered a unique version of the P Zero R as the primary fitment for the sports car. This tyre aims to balance performance with daily usability. A new compound provides grip across varied surfaces and weather, with an emphasis on wet conditions. The tread pattern reduces noise and low rolling resistance supports efficiency.

A dedicated P Zero Winter 2 tyre was also created for Porsche 911 owners seeking winter performance. This tyre features a directional tread pattern to improve wet and snow grip, while enhancing braking and handling on dry surfaces.

The tyre development process utilised Pirelli’s Virtual Development Center (VDC) in Breuberg, Germany. This facility employs virtual design and testing, leading to increased precision, a 30 percent reduction in development time and a 30 percent decrease in physical prototypes. The VDC facilitated the optimisation of tyre characteristics for the Porsche 911.

This joint effort represents the latest in a long-standing partnership between Pirelli and Porsche. Pirelli has achieved 338 homologations for all Porsche models, including SUVs, sedans and sports cars with internal combustion, hybrid and electric powertrains. Previous collaborations include the P Zero Trofeo RS for the 911 GT3 RS and the Pirelli Scorpion All Terrain Plus for the 911 Dakar. The P Zero R will be the main tyre for the Porsche 911 GTS.

Continental and Danish transport company DFDS are strongly committed to the development of sustainable logistics. With Europe's biggest fleet of heavy-duty electric trucks, the company uses Conti Eco Gen 5 tyres with optimised rolling resistance and high mileage, as well as the ContiConnect digital tyre management system for continuous monitoring. Both the companies have been collaborating effectively since the beginning of 2023.

With its well-balanced mix of high mileage and improved rolling resistance, the Conti Eco Gen 5 tyre series, which is a specialist for long-distance and regional transportation, powers DFDS' fleet of electric trucks. A quarter of the DFDS fleet is expected to be electrified by 2030. The ContiConnect digital tyre management system guarantees that DFDS monitors all of the fleet's tyres. Additionally, the fleet's range is extended by the digital tyre management system.

One of Denmark's oldest organisations, Det Forenede Dampskibs-Selskab (The United Steamship Company, DFDS) is made up of the business segments DFDS Ferry for maritime transportation, DFDS Logistics for road and rail transportation and DFDS Container Transport. The firm has a large fleet consisting of 70 maritime boats, 3,200 vehicles, and 15,200 trailers. The company has its own shore power infrastructure and charging stations in addition to a sizeable fleet of electric trucks.

Niklas Andersson, Executive Vice President and Head of Logistics, DFDS, said, “We are currently replacing our diesel trucks with electric trucks. We want to drive the transition to more sustainable road transportation and show that zero-emission transport is already a viable solution today. The expansion of our e-truck fleet helps to support more companies in decarbonising their supply chains and underlines our commitment to lead this development.”

Hinnerk Kaiser, Head of Product Development EMEA, Continental, said, “Sustainability and cost efficiency are attracting increasing interest on the market. The optimised rolling resistance and high mileage of Conti Eco tyres ensure that the energy efficiency of the truck increases and CO2 emissions are reduced.”

Carl-Johan Ejserholm, Fleet Manager, DFDS, said, “Thanks to the tyre sensors and the software, we have tyre inflation pressure, temperature and mileage permanently under control, avoid punctures and can carry out tyre changes according to plan. Efficient maintenance helps us to reduce operating costs. This is a benefit for us and a benefit for our customers, a benefit for everyone. By optimally managing journeys, we can minimise downtime for charging on route. More and more of our customers want us to drive battery-electric vehicles for them to further improve their environmental footprint. Digital tyre monitoring contributes to the efficient and more sustainable operation of our vehicles, which has a positive impact on our emission values.”

The German rubber industry has urged for an immediate implementation of the economic turnaround.

Addressing around 250 representatives of member companies of the employers' association of the German rubber industry (ADK) and the wdk at the ‘Day of the Rubber Industry’ event in Berlin, Michael Klein, President, wdk, said, “The economic turnaround manoeuvre must begin immediately. It is incomprehensible that the small key industries, which are so important for the German location, are not mentioned at all in the coalition agreement. The medium-sized companies are unsettled and urgently need planning security. This means an ambitious reduction of documentation and reporting obligations and the fastest possible relief in energy costs.”

According to the association, the regulatory procedures are particularly difficult for small and family-run businesses to comprehend. The German rubber industry is strong and resilient in decision-making, and it brings together major tyre manufacturers and producers of other rubber goods to form a formidable industry. However, it can only fully utilise its potential if the framework conditions are improved, which is the responsibility of the incoming federal government, stressed the wdk President.

Apollo Tyres has strengthened its renewable energy portfolio by acquiring an additional 3.43 percent stake in Green Infra Wind Power Projects Limited (GIWPPL), a wind power producer operating in Tamil Nadu.

In regulatory filings with the Bombay Stock Exchange and National Stock Exchange, the tyre manufacturer disclosed that its shareholding in GIWPPL will increase to 21.27 percent following the purchase of 60,000 equity shares at INR 10 per share, totalling INR 600,000.

The acquisition represents Apollo's growing commitment to green energy as part of its sustainability initiatives. Before this transaction, Apollo held a 17.84 percent stake in GIWPPL, comprising 312,000 equity shares.

GIWPPL, incorporated in July 2011, operates a 24-megawatt wind power project in Tamil Nadu and is a Sembcorp Green Infra Private Limited subsidiary. The company reported a turnover of INR 235.25 million for the fiscal year ended March 31, 2024, up from INR 208.81 million in the previous year.

This investment aligns with Apollo Tyres’ broader strategy to increase its renewable energy sourcing while potentially reducing its carbon footprint and energy costs across its manufacturing operations. Apollo Tyres stated the objective of the acquisition is for “procurement of wind power.”