CEAT Ventures into Steel Radial Tyres for Two-Wheelers, Targets Premiumisation

Tyre manufacturer CEAT Ltd has announced its foray into the steel radial tyre segment for two-wheelers, aiming to strengthen its leadership position in the overall two-wheeler tyre market and enhance its brand premium.

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Targeting Aftermarket and OEM Segments

The company launched its new premium range of two-wheeler steel radial tyres, targeting both the aftermarket and original equipment manufacturer (OEM) segments. CEAT recognizes the growing trend among consumers who are venturing into solo and group leisure biking, off-road expeditions, and adventure biking, driven by increased affordability and improved infrastructure.

Growing Market Potential

CEAT Managing Director & CEO Arnab Banerjee highlighted the significance of the steel radial tyre segment for two-wheelers. He noted that while it currently accounts for only 3% of the overall two-wheeler market, it is rapidly gaining saliency. As the market leader in two-wheeler tyres, CEAT's actions and growth in this segment will have a substantial impact.

Premiumization Strategy

Banerjee emphasized the importance of entering the steel radial tyre segment to premiumize the CEAT brand. He explained that the two-wheeler segment is primarily commuter-led, with people using bikes for daily commuting and business purposes. The growing trend towards leisure and adventure biking presents an opportunity for CEAT to differentiate its brand and capture a premium market.

Aftermarket and OEM Focus

CEAT's new range of steel radial tyres will initially target the aftermarket, but the company is also involved in several projects with OEMs for bikes that will be launched with CEAT steel radials. Banerjee expressed confidence that CEAT will maintain a pole position in the growing industry and grow at a faster rate.

Domestic Market Focus

The new range of products is primarily designed for the domestic market, considering the specific requirements and preferences of Indian consumers. While CEAT is studying the export market, there are currently no plans to enter the export market with two-wheeler steel radial tyres.

CEAT's foray into steel radial tyres for two-wheelers represents a strategic move to capitalize on the growing demand for premium tyres and further strengthen its leadership position in the Indian two-wheeler tyre market.