New Delhi, Jan 5 (KNN) The Automotive Tyre Manufacturers Association (ATMA) on Wednesday said that the Indian Tyre Industry will scale a turnover of Rs 1 lakh crore in the next three years on the back of new capacities available.

The new capacities will go on stream over the next couple of years to meet the growing demand in an economy that is poised to remain as the fastest growing for the next few years, ATMA said in a statement.

According to the association, the demand is likely to grow stronger due to government’s push to develop infrastructure.

The current turnover over the sector stands at Rs 75,000 crore, ATMA said.

"The investments that have been undertaken in a challenging time period, span across all the key tyre segments with major beneficiary being truck and bus radials (TBR) and passenger car radials (PCR) manufacturing," ATMA Chairman Satish Sharma said.

Although the external environment continues to be challenging, ATMA said, there are several tailwinds to tyre sector's growth domestically.

The policy and regulatory environment in India is playing a significant role to encourage competitiveness in the industry, Sharma pointed out.

"Different segments of the Auto sector have already reached or are reaching pre-pandemic levels in size and scale aiding demand for tyres," the association said.

With the government bringing in a non-renewal of registration of 15-year-old government vehicles, the demand for new vehicles will grow, benefiting a host of associated sectors, including tyre and kick off a cycle of economic growth.  (KNN Bureau)