Leading tyre manufacturer, MRF states that they are witnessing slow growth in the automobile and tyre manufacturing industry due to the crisis brought in by the COVID-19 pandemic.
KM Mammen, Chairman and Managing Director of MRF stated that "We are passing through the most disruptive and uncertain times in modern human history."
He added that "The world is enveloped by Covid-19 and no country is free from this pandemic and the resultant economic crisis has aggravated the global community's hardship. The work culture has changed dramatically across all industries. The tyre industry is also riding this wave of change."
The lockdown was lifted two months ago yet, the company is finding it difficult to establish better economic figures in terms of production. The automobile and tyre manufacturing industry is unclear about their future due to the uncertainties brought in by the pandemic, He added.
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KM Mammen mentioned that the process of recovery would be difficult since the disposable incomes, availability of credits and consumer behaviour have changed due to the pandemic.
He mentioned that "Fortunately, the demand for tyres, particularly from the farm and commercial sector, has not been affected much and we are able to cater to these market segments."
According to KM Mammen, the crop production and the rural economy will not be affected since a forecast of normal monsoon season is predicted which means that there is a possibility for "bumper crop". This could result in the demand for two-wheeler and agricultural equipment resulting in the growth of the agricultural tyre sector.
The company also mentioned that the government's curbs on the import of tyres were a relief since the demand for the domestic tyre industry will eventually increase. The manufacturer also mentioned that the demand for the export of tyres also increased. The company's exports grew to Rs.1,651 crores in FY20 from Rs.1,566 crores in FY19.
