Ceat, one of India’s leading tyre manufacturers, has set an ambitious goal to become the second-largest player in the passenger car radial (PCR) tyre segment in the replacement market by FY25. This strategic aim was revealed during the company’s annual investor meeting, where the Mumbai-based firm outlined its focus on better pricing power and increased branding efforts to drive growth.
Currently ranking third with a 17% market share, Ceat is behind Bridgestone and Apollo Tyres in the PCR segment. The company plans to leverage its pricing power, with a current 8-9% premium over MRF, which holds a 12-13% market share. Branding and marketing investments will be pivotal in achieving this goal.
Ashok Minda, Chairman and Group CEO of Ceat, emphasized the company’s commitment to the Atmanirbhar Bharat initiative and its strategy to offer advanced technology products to boost growth. “We are committed to delivering comprehensive system solutions encompassing product design, development, and manufacturing for passenger vehicles,” he said.
To reach its target, Ceat plans to expand its retail network, which currently includes 580 stores, and enhance dealer support. The company is also focusing on premiumization, aiming for a top line of ₹17,000 crore within three years. This strategy aligns with the increasing demand for wider tyres with larger rim sizes, driven by the growth in the SUV and MPV segments.
Ceat’s management highlighted the significant potential for growth in the above-17-inch tyre segment. Currently, large-diameter tyres constitute over 50% of the OEM market for SUVs, while in the replacement market, they hold a 7-8% share, with the potential to rise to 25-30% in the next two to three years.
The company also expects robust double-digit growth in the replacement segment, despite moderate growth in PV OEM volumes. Ceat has launched multiple premium tyres and now covers about 95% of the stock keeping unit (SKU) range in this segment.
In the EV segment, Ceat does not plan to offer exclusive products but will target platform wins across two-wheelers, passenger vehicles (PV), and commercial vehicles (CV). It is already serving a range of EV manufacturers, including Tata Motors, BYD, M&M, MG Motors, and Kia Motors in PVs, and Tata Motors, Eicher Motors, and Switch Mobility in CVs.
Regarding capital expenditure, Ceat intends to focus on “bite-sized” capex investments. The company plans to invest ₹1,000 crore for capacity expansion in FY25 and a similar amount in FY26. This investment strategy aims to add ₹3,000-4,000 crore to the company’s revenue without any new greenfield projects, meeting demand through existing capacities.
Ceat is also targeting export expansion as a key growth avenue. Currently, exports contribute close to 19% of the company’s revenue, a figure it aims to increase to 25% by FY26. The company plans to drive international growth in markets such as Europe, the US, Latin America, and the Middle East, particularly in bus radials and agri-radial tyres. Ceat already has 850 SKUs for agri-exports and plans to add 100-200 more each year.
By the second quarter of this fiscal year, Ceat intends to launch truck radial tyres in the US and passenger radial tyres by the end of FY25. The company’s PV tyre exports currently stand at 2.2 million per year.
With these strategic moves, Ceat is poised to strengthen its position in the PCR tyre market and enhance its footprint in both domestic and international markets, driving forward its ambitious growth plans.
