Ceat has commenced phase II of its Nagpur Plant to produce two-wheeler tyres for commercial use, said the company in a release. The company had invested Rs3,500 crore ($470mn) to increase production capacity, as announced in July last year.
India has banned import of tyres and demand for tyres from auto manufacturers has therefore risen resulting in high demand for domestic tyres. Also, the company announced that they will ramp up operations soon at its Nagpur plant based on market demand and their overall capacities.
Oxide manufacturers have told Davis Index that demand for zinc oxide has increased driven by tyre manufacturers orders. Production of zinc oxide will also rise if the increment in demand sustains, which will also drive demand for zinc dross.
Ceat produces over 165mn tyres a year for all auto segments. The company has six plants in India. Auto manufacturers are also ramping up production to meet the expected high demand likely in September due to festive rush.