August 6, 2020 << Back to Blog
August 6, 2020
India has emerged as one of the leading Markets in OTR tires, growing at a faster pace and providing a new engine of global growth in emerging markets. Today, India is the largest market for construction & Mining equipment, the largest use for OTR tires is in mining and construction, which also includes some larger industrial applications such as ports and handling.
Mining and construction growth over the last several years has helped the overall market to grow, construction, and industrial have continued their steady performances, more in line with overall economic growth.
Over the next five years, the industry will be entering a transformative era and will be shifting from a transactional-focused model to a solutions-oriented approach to business. Much of this will be driven by the two key core OTR segments: Mining and Construction.
Challenges for OTR tires in India
Although there are a lot of opportunities for OTR tires in India due to the growing mechanisation in the construction and infrastructure industry, The OTR tire manufacturers are facing many challenges, which are hampering the industry growth. For instance, growth in the OTR tires market in the country is directly related with the growth of mining activities. Changes in the mining industry and market are also the impetus behind changes in large OTR tires themselves. One of the issues facing the industry these days is the changing requirements of mining operation vehicles. Trucks are getting bigger and hauls are getting longer. Manufacturers have to develop products that will withstand these more intense conditions. New technological trends include compounds that are more heat-resistant and tread patterns that dissipate heat for longer hauls. For shorter hauls that require tight operations, better compounds are being developed to resist severe tire cuts while in operation. Matching tire to task is becoming more Challenge.
Needs & Expectations for OTR tires in India Market
OTR tire customer needs to go beyond tires and basic servicing, the increasing service requirements need predictive analytics to help them minimise downtime and maximise safety and productivity. Major fleets are becoming more focused on total cost of tire ownership, moving away from a purely product-centric or transactional view, where they only evaluate a tire’s purchase price. They are assessing the total cost of tire ownership. Using technology and data to analyse product value and making decisions based on this data to maximise uptime and increase in profitability.
Essential elements for tires
OTR tire manufacturers are also implementing technical innovations in their tires such as tire pressure monitoring system, cut and chip resistance, etc., to keep up with expectations. Modern OTR tires are equipped with high abrasion resistance, and fuel and energy efficiency features. Due to the introduction of heavy machinery in the mining and construction sector, the demand for more durable tires that can work in different terrains is required along with cost, quality, and availability effectiveness – also play a key role in OTR tires.
ATG Products: A Smarter Choice
ATG has a wide range of OTR tires In Bias and Radial tires for RDT, UGM, Material Handling (Industrial & Port), Loaders, Graders and Cranes, etc.
The Galaxy Port Star plus has created ripples in the market as high performing tires giving the best CPH for the customers.
The Rigid Dump Truck has Created it is own market. High performances obtained in copper, Lime stone etc., on site performance has led to Good Demand for these tires.
Future of OTR Tires in India
The OTR tire industry in India is anticipated to exhibit significant growth in the future, the demand for OTR tire is on the rise in the domestic market with demand coming from construction, mining (bigger OTR tires with bigger capacity dump trucks) and material handling equipment segments,
With More Projects lined up like:
Coal consumption will be doubled by 2025 and planned to increase the total mining area. Cement industry will also start moving with new projects and plants as GOI is developing Infrastructure pan India (Road construction, new railway lines, and other village development program).
Ports is one of the key segments especially as per the Indian market perspective. The entire project to develop ports and connectivity will provide opportunity for the Port equipment segment Growing up and prompting the use of a new range of tires. In fact, the existing ports are seeing more demand coming in.
OVERALL THE OTR INDUSTRY IS SET FOR BIG GROWTH IN INDIA.
DGM Sales – APAC