“Utilization is high, we’ve invested a lot, expansion is underway, and the timing is just right.

Mumbai: Ceat executives said it will move quickly to expand capacity and resume frozen capital expenditure on the back of a significant recovery in tire demand.

The p 350 is part of a Rs 350 crore four-year capex plan implemented last year by RPG The group of tire makers plans to invest around 120 months in the next 18-24 To increase capacity, Rs 100 crore. Even after 10 lakh. After Rs 100 crore, production remained unchanged because of the COVID-19 pandemic.

Anant Goenka, Managing Director, Ceat LTD, told The Economic Times that the plant production was high, the limited production capacity of tires for agricultural equipment and the temporary underutilization of tires during Diwali. We have invested a lot and are currently expanding. Fortunately, the timing is perfect. Geyinka said.

When the virus broke out last April, Goenka said, the company was concerned about the return on its investment in the plant’s production capacity because sales were shutting down and the outlook had been bleak lately, but “things bounced back pretty quickly.”

The company is investing in doubling its passenger car tire capacity to 40,000 tires per day. The new capacity currently produces 5,000 to 6,000 tires per day, with the rest of the capacity coming in the next nine to 12 months, he said.

The company expects to double its exports in the next two years.-For three years, I have been focusing on Europe. Restrictions on tire imports since June this year have also brought benefits, with about 3-5% of the market being monopolized by foreign tires, Goenka said.

Michelin, the world’s leading tire maker, said in a letter to dealers last week that it will not be able to offer passenger car tires until the government eases import restrictions. This is expected to further revitalize domestic tire makers such as ceat.

The company recorded its highest-ever sales in the December quarter, and the momentum is expected to continue in the next two quarters.

“COVID-19 is over and we will be “back to COVID-19″ levels”. As in the previous quarter, sales in this quarter (Q3) were at an all-time high, with a sluggish market for new commercial vehicles. For the sake of the environment,” said Geyinka.

Slumping commercial vehicle sales before the incident have yet to rebound.