The Grip That Drives India: Tyre Replacement Market Revealed

 

The Grip That Drives India: Tyre Replacement Market Revealed

 

It’s very interesting to note that India is the largest two-wheeler market in the world and a rapidly growing hub for three-wheelers. With over 250 million two-wheelers and 10 million three-wheelers currently plying Indian roads, the tire replacement market for these segments is emerging as a critical revenue stream for tyre manufacturers.

Unlike the Original Equipment (OE) segment, which deals with factory-fitted tyres in new vehicles, the replacement market is consistent, recurring, and largely consumer-driven. This blog post dives deep into the different section for understanding the current market leaders, the state-wise and tire-size-wise share and the total potential of the two-wheeler and three-wheeler tire replacement markets in India.

 

Section 1: Understanding the Replacement Market

What is the Replacement Market?

The replacement tire market refers to tyres sold for vehicles already in use, usually when the original tires wear out. It includes:

v  Retail sales

v  Fleet and institutional buyers

v  Online platforms

Why It Matters?

v  Steady Demand: Tires typically require replacement every 2-4 years for two-wheelers and every 1.5-2 years for commercial three-wheelers.

v  Higher Margins: Compared to OE tires, the margins in replacement markets are higher.

v  Brand Loyalty: Consumers often switch to other brands in this segment, offering new players and quality brands a chance to gain market share.

 

Section 2: Total Potential of Two- & Three-Wheeler Tire Replacement Market in India

Two-Wheelers

v  Total Vehicles on Road (2024): ~250 million

v  Average Tire Life: 2.5 years

v  Tires Per Vehicle: 2

📈 Estimated Annual Replacement Potential

v  Total tires = (250 million / 2.5) × 2 = 200 million tires/year

Three-Wheelers

v  Total Vehicles on Road (2024): ~10 million

v  Average Tire Life: 1.5 years (due to higher commercial usage)

v  Tires Per Vehicle: 3

📈 Estimated Annual Replacement Potential

v  Total tires = (10 million / 1.5) × 3 = 20 million tires/year

Combined Potential

🔍 Total Replacement Market Size: ≈ 220 million tires annually

This number continues to grow with increased vehicle sales and the rise of e-commerce, rural connectivity, and last-mile delivery vehicles.

 

Section 3: Market Leaders – Replacement Segment

🏆 Leading Tire Companies in Replacement Market

Based on industry data from FY 2023–24:

 

Rank

Brand

Approx. Market Share

1

MRF

26%

2

CEAT

20%

3

TVS Eurogrip

18%

4

 JK Tyres

9%

5

Ralco(Ralson)

8%

6

Apollo

6%

7

Others

13%

These first six brands dominate because of:

v  Strong dealer networks

v  Extensive rural reach

v  Reputation for quality & affordability

v  High availability across cities and villages

 

Section 4: State-Wise Market Share Analysis

Here is a state-wise market potential estimate based on the number of registered two & three-wheelers, per the Ministry of Road Transport data and regional RTO data.

State

Approx. Share of India’s Total 2W & 3W Population

Market Share in Replacement (%)

Uttar Pradesh

12%

13%

Maharashtra

10%

11%

Tamil Nadu

9%

9%

Karnataka

8%

8%

Rajasthan

7%

7.5%

Gujarat

7%

7%

Bihar

6%

6.5%

West Bengal

6%

6%

Andhra Pradesh

5%

5%

Madhya Pradesh

5%

5.5%

Telangana

4%

4%

Punjab

3.5%

3.5%

Haryana

3.5%

3.5%

Others

13%

10.5%

States with high rural populations like Uttar Pradesh, Bihar, and Rajasthan see frequent tyre replacements, especially in three-wheelers used for transport and delivery.

 

Section 5: Tyre Size-Wise Segmentation

📏 Popular Two-Wheeler Tyre Sizes in India

Size (in inches)

Common Use

Market Share (%)

2.75-18

Older motorcycles (Splendor, etc.)

8%

3.00-18

Commuter motorcycles

20%

90/90-17

Mid-range bikes (FZ, Apache, etc.)

5%

100/90-17

Premium commuters

6%

80/100-18

Entry-level & scooters

8%

90/100-10

Scooters (Activa, Jupiter, etc.)

48%

Others

High-end/sports bikes

5%

📏 Popular Three-Wheeler Tyre Sizes

Size (in inches)

Common Use

Market Share (%)

4.00-8

Electric & passenger autos

10%

4.50-10

ICE-powered autos

35%

5.00-10

Load carriers (cargo)

15%

4.00-10

Passenger & mini goods

35%

Others

5%

Smaller rim sizes dominate the scooter and auto-rickshaw segment, whereas mid-range bikes still use 17–18-inch tyres for better balance and durability.

 

Section 6: Trends Shaping the Market

1. Electric Two & Three-Wheelers

v  New EV scooters and rickshaws often have different load characteristics, needing specially designed tyres.

v  Replacement demand for EV tyres is growing at 18–20% CAGR.

2. Rural Penetration

v  60% of India’s two-wheelers are in Tier 3 towns and villages.

v  Rural consumers prefer long-lasting tyres, hence brands like MRF and TVS dominate there.

3. Digital Tyre Buying

v  Digital sales picking up  with platforms like TyrePlex, Tyre Market, and Amazon Auto, the online share in the replacement market is rising.

v  Urban users now research, compare, and purchase tyres online for convenience.

4. Retreading Not Common

v  Retreading is popular in truck tyres but not in two- or three-wheelers due to lower cost of new tyres.

 

Section 7: Challenges in the Replacement Market

Challenge

Impact

Dominance of Unorganized Sector

Around 30% of sales are via small dealers pushing cheaper brands

Price Sensitivity

Consumers often go for low-price over quality in rural areas

Lack of Consumer Awareness

Not all users replace tyres on time; they use them till they burst

Inventory Management for Retailers

Wide size range requires large inventory

To succeed, manufacturers must educate, engage, and enable the end-user while strengthening the channel partners.

 

Section 8: Forecast for the Next 5 Years

v  Growth Rate: 6–8%



in the replacement tyre volume for two & three-wheelers.

v  Market Size: Expected to cross 300 million tyres/year by 2030.

v  Rise of Premium Brands: Consumers in urban areas are shifting towards brands that offer better mileage and grip.

 

Conclusion

The two and three-wheeler tyre replacement market in India is not just large—it’s a goldmine for tyre manufacturers. With over 220 million tyres sold annually, strong state-wise and size-wise preferences, and consumer loyalty shifts, it offers a huge revenue opportunity.

Brands that invest in:

v  Regional marketing

v  Strong distribution

v  Digital presence

v  Product innovation (EV tyres, long-life rubber)

 All these factors are very important and will emerge as the future leaders in this segment.

Whether you’re a manufacturer, dealer, or auto enthusiast, understanding this market gives a strategic edge in a growing economy where two and three-wheelers remain the backbone of mobility.

 

Disclaimer

This blog post is based on industry estimates, government data, and publicly available information as of 2024–25. Market figures are calculated on approximations and may vary based on changing consumer behavior, regulations, and new vehicle registrations.

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