CEAT Tires continues N.A. push as prices stabilize

CEAT Specialty Tires continues to grow internationally and believes stability in supply chain-costs will help keep tire prices stable.

Amit Tolani, chief executive of CEAT Specialty, takes part in a Q&A.

While business thus far has been steady, there has been noteworthy growth observed within the agro-industrial and flotation segments, reflecting a promising and positive response to our products. While there is excess of inventory in the market, secondary demand remains stable. It is anticipated that inventory adjustments will happen and primary demand should normalize during the latter half of the year.

Internally, our organization is minimally impacted due to our diversified vendor base, which safeguards our supply and value chain. Inflation, low rainfall and war continue to impact EU demand. Secondary demand in North America continues to be stable.

The North American region holds a significant share of over 20% in the off-highway tires (OHT) market and is a crucial market for CEAT Specialty. To achieve incremental growth in this region, we have placed great emphasis on collaborating closely with channel partners and farmers.

Our aim is to offer them superior quality products at accessible prices. This approach has been pivotal in driving our growth in the North American OHT market. We have partnered with multiple regional distributors to ensure that our products are available across the region.

Following the COVID and post-COVID phase of increased material costs and unfavorable freight rates, we are presently back to normal material and freight rates. I expect the freight rates to remain at current levels for the next few quarters, thereby ensuring stability of prices.

CEAT Specialty has increased production capacity of agriculture radial tires by 50% this year to meet growing demand for our products around the globe. Further, the company plans to steadily add to its production capacity each year for the next three years across all OHT segments.

We will be adding to our product range with new forestry, R2 and telehandler lines. We are also expanding our IF/VF line into implements and flotation applications, and we are adding new sizes in the IF/VF tractor and sprayer ranges. We will be launching and showcasing some of these at major trade shows such as Farm Progress Show, Agritechnica, World Ag Show, etc.

These additions to our product portfolio reflect our commitment to meeting the diverse needs of our customers in the industry.

As a recipient of the highest honor in quality, the Deming Award, CEAT is committed to providing best-in-class products to our customers. All our plants have received a five-star grading in the Occupational Health and Safety Audit conducted by the British Safety Council. We have invested in world-class manufacturing technologies and the best talent to design CEAT Specialty tires.

Within only five years of entering the international market, we have not only grown considerably in the aftermarket, but have also made significant inroads in supplying to heavy equipment manufacturers across the globe, most notably AGCO, CNH, John Deere and JCB. For the North American market, CEAT Specialty is well-positioned to provide superior quality products at accessible prices.