MRF look forwards to gaining tight hold in tyre market of EV Industry: KM Mammen

As the top tyre manufacturer prepares for the transition from internal combustion engines (ICE) to

electric vehicles

"The company will manage the challenges posed by the transition to electric and other automobiles”. In answer to inquiries from shareholders during the business's 62nd annual general meeting, KM Mammen, chairman and managing director of the company, stated that technologies are being developed and breakthroughs have been achieved to support the EV industry.

He said that among other features, the EV tyres from MRF will have meagre rolling resistance, high grip, wear resistance, and noise reduction. Thanks to these characteristics in EV tyres, the business is optimistic about establishing a solid presence in the EV industry. 

Along with participating in collaborative R&D projects, Mammen added that the firm was investing in R&D. "Outside of capital expenditures, the corporation spends roughly Rs. 100 crore annually on R&D operations. Additionally, the business conducts R&D initiatives in collaboration with universities and research organisations in India and overseas," he continued.

Developing innovative goods, finding substitute raw materials, and making our products ecologically friendly are the goals of the R&D projects. As battery-powered vehicles will need distinct features, including lower rolling resistance, Indian tyre firms have been concentrating on R&D to produce a new variety of tyres for electric vehicles.

According to research by Crisil, the tyre industry's R&D spending would more than double to $151 million from $64 million, having increased thrice over the previous five fiscal years.

Cost, range ambiguity, and battery safety concerns are the main barriers to EV adoption, but consumer enthusiasm is growing. Despite difficulties, the market for electric vehicles is anticipated to develop steadily as sales of EVs are anticipated to increase by 25% in this calendar year, providing a ray of hope in an otherwise difficult sector.

The top three producers of tyres for

two-wheelers

Regarding capacity utilisation, Mammen claimed there was an opportunity for the business to develop. The replacement market, OEM supplies, and institutional sales account for around 92% of the company's 23,261 crores (consolidated revenue), with the replacement sector accounting for a sizeable portion. Exports account for the remaining 8%.