2 min read
25 May 2021

Restoring worn-out and damaged tyres with new treads is known as re-treading. This is done using a hot or cold process and is good for trucks, SUVs, vans and cars. A re-treaded tyre can clear a performance check almost like it’s new.

Retreading dominates 50% of the organised tyre segment in India today. It is an environment-friendly process as it recycles old tyres with only 26.5 litres of oil compared to the 83.2 litres used in manufacturing. So, re-treading can add more efficiency to your auto business and win you new customers when done right.

Here are the three main reasons you should add re-treading to your business model.

1. Preference of re-treaded tyres over new tyres

Retreaded tyres have the same life as a new tyre and are less costly. Thus, consumers prefer buying re-treaded tyres instead of a brand new set. With proper re-treading, you can extend the life of old tyres and, in a way, recycle them. Adding this process to your present business will be beneficial, as it will allow you to cater to customers looking to re-tread tyres and buy new ones.

However, this will require significant investment, as you will have to buy buffing and re-treading machines. But don’t let this stop you. You can avail a machinery loan of up to Rs. 30 lakh from Bajaj Finserv to fund this. This is an unsecured loan with a Flexi loan facility. You can withdraw from the total sanction in instalments, as per your needs, and pay interest only on the amount you use. To keep costs low, you can choose to pay interest-only EMIs and then repay the principal when the tenor lapses.

2. Price reduction of re-treaded tyres after GST

The GST was introduced to boost the Indian economy, and, as a result, the demand for re-treaded tyres has gone up because of lower prices. More people are considering re-treading tyres, as they are 30–50% cheaper than new ones. This allows you to capitalise on the rising demand before your competitors catch up. Also, with GST formalising the economy, there is greater movement of goods across the country, which has created a greater demand for re-treading services.

3. Increase in sale of commercial vehicles

The commercial vehicles industry has registered high sales numbers in recent years and shows no signs of slowing down. In 2017–2018, the industry grew by around 20%, with 8.56 lakh units being sold in the year. The increase in commercial vehicles that traverse the country spells good news for you. Commercial freight service providers are increasingly considering re-treading because it is more economical.

Tyre re-treading creates a win-win situation in which you and your customer are happy. It saves them money and allows you to add to your revenue. Make the initial investment in this diversification by using funds instantly through your pre-approved offer, and set up your business for greater success.

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