Why to Invest In a Tyre Retreading Business? Tyre retreading is the process of restoration of old tires to use them in automobiles. The whole process is technology-driven in which the worn-out and damaged threads are replaced with the new treads. Tyre retreading is done by using any 2 methods and these are the cold and hot processes. In India, presently tyre retreading is done 50% by the unorganized sector and 50% by organized sectors.
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The Industry Dynamics of the Tyre Retreading
Before the GST was introduced in the Indian government most of the tyre retreading used to be done by the unorganized sector but since then a big number of players is entering the organized sector. The retreaded tyres are cheaper than new radial tires. There is a huge demand in the market for these tyres. As more brands are entering the industry the level of quality is ensured which means there are chances of tyre retreading industry will grow faster.
The Business of Tyre Retreading Industry
The business of tyre retreading is anticipated to grow shortly. As the increasing sales of commercial vehicles are anticipated to see tremendous growth. The sales of commercial vehicles saw a growth of 4.5% in the year 2018-2019 and are anticipated to grow at a rate of 5-6% in the upcoming years and these will make the growth in tyre retreading industry. A lot of investors are investing in the tyre retreading industry due to the low cost and high remunerations. The growth driving factors that will expand the growth of tyre retreading industry are better roads and growing infrastructure network, rising use of radial tires by commercial vehicles. To start the business of tyre retreading one needs to have all the license and registration before entering into the industry such as a trade license that permits the operation of the business unit in a particular area. MSME Udyog Aadhaar certification is majorly used for Micro, small, and medium scale industries. Registration under factories acts 1987 that is for making sure the safety and health of workers in a factory. Company Registration for business under the Companies Act 2013 regulates the incorporation of a company and defines the responsibilities of a company and its directors or owners.
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Growth of Tyre Retreading Industry
The retreading industry in India is anticipated to be more than US$ 1 billion (INR 5,000 crore annually) with almost 20,000 retreaters in the organized and unorganized sector. Globally, the market of retread is expected to grow from $ 9.6 billion in 2017 to more than $ 11.5 billion by 2023. Globally, the retread tires market is segmented based on vehicle type into a passenger car, light commercial vehicle, heavy commercial vehicle, and off-road vehicle. Based on vehicle type, the heavy commercial vehicle sector is expected to continue to dominate the market globally in terms of value in the forecasted period. The demand for retread tires in heavy commercial vehicles is expected to increase at a high CAGR in comparison to other vehicle types in the upcoming years. This sector is anticipated to represent a total incremental opportunity of US$ 2,228 between 2018 and 2028.
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Conclusion
Niir Project Consultancy Services (NPCS) is a team of highly experienced engineers, planners, specialists, financial experts, economic analysts, and design specialists who prepare the project reports on different segments you can get the project report on Tyre Retreading For Heavy Vehicles. The data provided in project reports are assessed multiple times with the help of industry players. The report not only gives the details about the current market scenarios but also on future growth and demand of markets too.
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