CHENNAI: Mumbai-based tyre manufacturer Ceat focuses on research and development of electric vehicle (EV) tyres, steel radials for high-speed long-distance rides and using recyclable materials, as the vehicle market witnesses a major shift.
The sale of electric vehicle tyres is expected to be about 25-30% of the total passenger segment in next five years, and touch 25 per cent of the replacement market in the next three years, Arnab Banerji, chief executive of Ceat told this newspaper.
Currently, the company’s 50 per cent volumes consist of EV two-wheelers, with scooters driving up demand; however, Ceat’s presence is limited in the four-wheeler segment. “We have a very strong participation in the upcoming models. As of now not many four-wheeler models are running. We will be a strong player when there are more EVs on the road as we’re developing new tires. Also, truck and bus categories also undergoing the electrification process and we’re in talks with traditional original equipment manufacturers (OEMs).”
The RPG Group firm is jointly developing EV tyres with OEMs and is currently working with Tata Motors, Citroen and MG Motor, among others, in the passenger vehicle market and in talks with Ashok Leyland, Tata Motors, among others, in the commercial market. EV tyres have to carry heavier batteries and withstand initial torque. It should be noiseless and have low rolling resistance to reduce range anxiety, making it a different game compared to traditional vehicles.
Meanwhile, Ceat plans to expand its Chennai plant’s manufacturing capacity from 20,000 passenger car radial a day to 40,000, based on demand outlook and has recently established a fully automated warehouse with the capacity of holding 2 lakh tyres, and expand 2-3 times in three years. This will facilitate easy storage, retrieval and fast turnaround time as it focuses on the export market.
The firm’s focus on Chennai is important as it plans to ship its product range to the US and European market from there. It also likely to witness demand for its agri radials and truck radials to the North and Latin American markets, apart from its traditional markets. Banerji expects the share of exports from volumes could go up to 50 per cent from 30 per cent in the next few years.