Why is Nomura cheerful about Indian tyre industry?

Global research firm is of the view that the Indian Tyre industry is experiencing a phase of cyclical dealing in demand.

The fundamentals of industry are in a good shape now due to high utilization and demand as well, analysts at the firm have written in their report.

It witness 8 percent volume CAGR over FY18-21. The segment is a beneficial one on the back of healthy growth outlook benign commodity prices and pricing discipline that will support margins.

Nomura expectation is strong demand scenario in order to keep utilization healthy.