How Tire Companies in India Are Going Green?

Tire companies in India are becoming increasingly cautious about the carbon footprint in their manufacturing process. Prominent tire companies such as CEAT and Bridgestone have already taken significant steps in this direction.

The TechSci Research report titled “India Tire Market Forecast & Opportunities, 2012 – 2022”) estimates that total vehicle production in India has increased from 4.17 million units in 2012 to 4.49 million units by 2016 – a major driver propelling growth in the tire market in India.

In a recent interview, the managing director of tire major CEAT Limited Mr Anant Goenka revealed that their company is figuring out a way through which they can reduce the impact of rolling resistance in their manufacturing process.

After thorough researches and examinations, the RPG group company CEAT found that 70 per cent of the total carbon footprint caused due to tire manufacturing was contributed by products which are a combination of rolling resistance and usage of unsustainable materials.

According to Mr Goenka, CEAT’s tire manufacturing plants follow the highest standards of safety, emission and environment. The company is further reinforcing its vision in all its areas including manufacturing, logistics and operations.

As per industry estimates, tire manufacturing contributes 10-15 per cent to the total carbon footprint and that’s quite a large amount. If tire companies focus on reducing their carbon footprint gradually, this number can be brought down by a significant level over a period of time.

Apart from CEAT, global tire bellwether Bridgestone has also unveiled a massive programme in order to reinforce its commitment to environment and sustainability. The programme is termed as “Our way to serve”, covering three major areas: people, mobility and environment.

Bridgestone, in its sustainability report 2016, had revealed that it has slashed tire-rolling resistance by 13 per cent as compared to 2005. 29 per cent reduction in carbon dioxide emissions were recorded per net sales from operations. In 2016, Bridgestone was the largest tire company in the world.

The TechSci Research study quotes that tire market in India was pegged at $ 8.67 billion in year 2016. It is expected to clock a CAGR of 9.17%, in value terms, thereby reaching $14.41 billion by year 2022.

The India tire market is propelled by continuous development of infrastructure and increasing purchasing power among the consumer of the country has also increased. As one of the fastest growing major economies in the world, India is home for over 1.2 billion people and that in itself indicates the sheer size of the market – undoubtedly the second largest market in the world, after China.

In addition, the government of India has shown its clear commitment towards infrastructure development with tremendous focus on roads, highways, airports, ports, railways, among other sectors. This overarching focus is fast translating into growth for other industries that support the infrastructure sector and of course tire market is one of them.

With such fantastic prospects for the tire market in India, reducing carbon footprint and addressing environmental concerns is among the major challenges facing the tire companies in India.

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