CEAT Eyes Double-Digit Growth Fueled by Rural Market Demand
CEAT Ltd anticipates maintaining double-digit growth this fiscal, driven by the domestic replacement segment, particularly in rural markets. The company is cautious about direct supplies to automakers due to muted demand and monitors U.S. tariff dynamics, addressing challenges through adaptive strategy.
- Country:
- India
Tyre manufacturer CEAT Ltd aims for sustained double-digit growth this fiscal year, primarily driven by the domestic replacement market, especially in rural areas, according to MD & CEO Arnab Banerjee. The company remains cautious on direct supplies to automakers due to subdued demand.
The U.S. market, although not currently significant for CEAT, holds growth potential. Banerjee stated that the company is observing the evolving U.S. tariff landscape before strategizing its expansion plans in the region. Despite the geopolitical uncertainty affecting the European market, CEAT has strong order visibility for Q2.
The rural two-wheeler replacement segment is expected to flourish owing to favorable monsoon conditions. Despite sluggish OEM growth in two-wheelers and passenger vehicles, CEAT anticipates gains from increasing adoption of larger tires in passenger cars and maintained demand for commercial vehicle tires.
(With inputs from agencies.)
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