The tyre industry is estimated to be about Rs 100 bn in size, with 12 companies accounting for around 85% of the total production.
Approximately 20% of total truck and bus tyres produced domestically is exported. Over 30% of the country's exports go to the US.
The performance of the tyre industry is strongly linked to that of automobile and surface transport sectors.
Raw material cost accounts for around 50% of the total cost of production of tyres. Because of raw material intensive nature, the profitability of the industry is largely dependent on the price trends of the raw materials. Nylon Tyre Cord Fabric and Natural Rubber are the main raw materials with weightage of 26% and 24% respectively in the total raw material cost.