Sep 07, 2020 (LBO) – Maximising capacity utilisation at its manufacturing plants at Kelaniya and Kalutara, the Company pushed production of tyres for motorcycles and scooters from 27,000 units a month in June 2020 to 41,000 per month in July and August and is on target to produce 50,000 tyres in September, increasing volumes by 52% in the first step and by an incremental 22% thereafter.
The sharp increase in the production of tyres for the two-wheeler segment follows similar ramping up of production of truck and bus tyres as well as passenger car radials by CEAT Kelani. To achieve the increases in two-wheeler capacity, the Company said it had utilised available capacity at its three-wheeler tyre plant in Kalutara. CEAT Kelani currently manufactures 32 different types of scooter and motorcycle tyres in 43 varying specifications, and now caters to 37% of local market requirements for two-wheeler tyres.
“The import restrictions challenge domestic industries to show what they are truly capable of, and we are pulling out all the stops to fully utilise the capacity we have to support the government’s initiative of import substitution through increased domestic manufacturing,” CEAT Kelani Managing Director Ravi Dadlani said. “We are continuing to look at ways of meeting demand for the most popular categories and sizes of tyres, and are keeping the government informed of the products that we are not equipped to manufacture so that they can be imported.”
“CEAT’s increased production of truck and bus tyres has resulted in the Company producing 100% of the segment’s requirements and enabled the government to make a saving of Rs 11 billion a year in foreign exchange. The Company’s latest initiative in the two-wheeler tyre segment is estimated to enable a further saving of Rs 350 million a year through import substitution.”
The expansion of production capacity for this segment of tyres has resulted in a 100 per cent increase in the production of sizes 90/90-12 TL and 90/100-10 TL that fit popular scooter models. Meanwhile, CEAT’s production of tyre size 90/90-17 TL that fits motorcycle models has increased by 400% and the Company has achieved a 100% increase in the production of the 100/80-17 TL tyre that is required for the popular Yamaha FZ. Production of tyres for Bajaj Pulsar 150, Bajaj CT 100, Bajaj Platina, and TVS Heavy Duty Super XL has also increased significantly.