Bridgestone Forays into Indian Two Wheeler Tire Market

India: Bridgestone has announced to enter into the two-wheeler tire market of India with the launch of its tire brand Neurun. According to the Managing Director of Bridgestone India Kazuhiko Mimura, “The launch of two-wheeler tire brand NEURUN is a big leap for us towards achieving our strategic expansion plan of catering to a high volume market and a wider audience reach." 

The company will be offering its new brand of tires in five sizes and nine SKU’s. The company believes that India is one of the lucrative markets for two-wheeler tires. Further, the two-wheeler tire segment dominated the tire market of India in volume terms in 2015. Two-wheeler tire segment, which accounted for a volume share of over 50% in the country’s tire market in 2015, is expected to maintain its position as the largest tire segment over the next five years.

According to a recent report published by TechSci Research, “India Tire Market Forecast & Opportunities, 2021”, the country’s tire market is forecast to witness a CAGR of over 9% during 2016-2021. Though the replacement tire demand had a majority share in 2015, the OEM tire demand is expected to outpace replacement tire demand during 2016-2021. In 2015, Northern region accounted for the largest share in India’s tire market, followed by Southern, Eastern and Western regions of the country. Over the next five years as well, Northern and Southern regions are forecast to continue their market dominance and grab a cumulative market share of nearly 59% in 2021.

TechSci Research believes that, introduction of two-wheeler tire by Bridgestone is likely to increase the market share of the company in the tire market of India.