Himalayan News Service

Kathmandu, March 24:

The exponential growth in tyre trade in Nepal in recent years is attributed to the phenomenal growth in automobile sales in the country. Though the volume of business has expanded, inferior and cheap products are hurting the prospects of genuine business to grow smoothly.

Premium and genuine brands are facing a tough competition from cheap and substandard products flooding the market, especially from China and India. Nepal is yet to achieve the desired levels of consumer awareness and set up a specific quality standard for tyres.

Annual turnover for tyre business is estimated to be over Rs 800 million in Nepal. Although no exact data is available, the growth surely is exponential. The availability of more than 60 brands itself tells that the business is moving upwards. Scores of new brands are flooding the tyre market every year. However, the country’s sole brand — Gorakhkali and some established brands such as Bridgestone, Dunlop, Yokohama, CEAT, Apollo, MRF, JK, Good Year and Silverstone are the driving forces in the market.

Though tyre is the second largest consumable item in the automobile sector after fuel, Nepal still lacks a specific quality standard for tyres. Due to this, inferior and cheaper products are flooding the market. In Nepal, two types of tyres are currently in use — Bias and Radial. The Bias tyres feature a carcass where the angle of the cord to the centre line is 35 degrees. Radial tyres are designed so that the cord of the carcass is perpendicular to the centre line, and a strong belt is attached above, for added stability even at high speed. Heavy vehicles with low speed such as trucks and buses mostly use bias tyres, while radial tyre is mostly used by small, light vehicles like passenger cars, jeep and vans. However, the trend has been changing and people are switching over to the use of radial tyres. Moreover, global tyre majors have now stopped manufacturing bias tyres, except in India and China. “The premium brands are facing tough challenges from inferior and substandard products which are readily available in the market,” says Manoj Kumar Sethia, director of ATC Pvt Ltd, the authorised importer of Bridgestone tyres for Nepal.

Bridgestone, originally from Japan, is a premium brand tyre and is the largest third country imported tyre in Nepal, with an annual sale of about 8,000 to 10,000 pieces, informed Sethia.

“Majority of consumers seek cheaper products rather than using genuine and quality products, which leads to bad consequences,” he said, stressing for the urgent need of a standard for tyres and strong mechanism to check grey business. Gorakhkali Rubber Udyog Ltd (GRUL) is the only tyre manufacturer in Nepal, which enjoys over 60 per cent market share in truck tyres. The state-run GRUL has a production capacity of 180,000 tyres per annum. “Following a technical collaboration with Modi Group of India, GRUL has aggressively come up with quality upgrading and marketing drive,” said Purushottam Shrestha, general manager at GRUL. Gorakhkali plans for product diversification and resumption of exports to Bangladesh and India. It also plans to export to Middle East. However, Shrestha said that the domestic market would be its prime focus.

“Strong after sale facilities along with product warranty and competitive price are the basic reasons for it holding a significant market share,” says Roshan Poudyal, marketing manager at GRUL. According to GRUL which currently produces seven different sizes of truck tyres and 12 sizes for non-trucks. “Despite unfavourable situation and cutthroat competition, Gorakhkali has been able create its own brand loyalty that has helped us to strive,” Poudyal added. He also informed that GRUL plans to expand its product portfolio in the near future. Tyre is one of the most important parts of a vehicle, in which the overall vehicle has to depend on. Its quality must not be compromised, commented Rabin Tamrakar of Shibako Auto Trading, authorised distributors of Yokohama tyres.

Extending tyre life

•Tyres should be replaced according to size, ply rating and maximum load of the original tire.

•The mixed application of different types tyres and/or type sizes on the same axel can adversely affect manoeuvrability, stability and braking because of differences in tyre performance characteristics and tyre deformation.

•Never use different sizes or construction of tyres on the same axel.

•When storing tyres, avoid direct sunlight, ozone, moisture, petroleum products and extremely

high ambient temperatures.

•Most tyre-trouble is caused by incorrect inflation pressure. It seriously affects driving performance and tyre life. Pressure of tyre should be adjusted when it is cool. While on highway, it is advised to readjust pressure to normal at the earliest possible chance after driving with deflated pressure.

•Avoid running at high speeds at under-inflation pressure.