Stories
CEAT Reports Surge in Premium Tyre Demand and Digital Sales Growth
- •CEAT reported strong volume growth in its premium passenger tyre portfolio, with tyres of 17-inch rims and above seeing year-to-date growth in the mid-30s.
- •Digital-led consumer acquisition played a significant role, with premium tyre sales through leads increasing 1.2 times and overall four-wheeler tyre sales through leads rising 36% year-on-year.
- •Rising input costs led raw material expenses to increase by 8% to 9% in the second quarter, prompting the company to implement price hikes across replacement and OEM segments.
- •Rural two-wheeler replacement demand remained a bright spot, growing at double-digit rates despite potential demand moderation risks from El Niño and higher repo rates.
- •CEAT posted standalone revenue growth of about 23% year-on-year in Q2 FY27, supported by underlying volume growth close to 10%.
Key Questions Answered
CEAT reported strong volume growth in its premium passenger tyre portfolio, which increased in the mid-30s year-to-date, alongside high mid-teens growth in its premium two-wheeler segment. The growth was further supported by rising digital-led sales and improving brand sentiment.
Raw material costs rose significantly, jumping 8% to 9% in Q2 compared to Q1 following a 15% increase earlier, prompting CEAT to implement cumulative price hikes of 12% to 13% in replacement segments and 14% to 15% in OEMs by September. The company plans further price increases in the third quarter to counter these pressures.
Digital engagement played an expanding role in CEAT's consumer acquisition, with premium tyre sales through digital leads increasing 1.2 times and overall four-wheeler tyre sales through leads rising 36% year-on-year. Additionally, positive sentiment for the brand grew by 37% over the same period last year.
