CEAT Bets Big on Overseas Markets Amidst Positive Export Outlook

Indian tyre major CEAT Ltd. is steering its growth ambitions toward international markets, signaling a strategic pivot that places exports at the center of its next growth cycle. Following its annual Analyst Day, the company laid out a roadmap that indicates a stronger export focus, particularly as demand stabilizes in key overseas geographies.

The FY26 export outlook appears notably upbeat. CEAT expects robust traction from Europe, the Middle East, Asia, and Latin America. This comes at a time when domestic replacement growth is projected to remain in single digits, compelling the company to search for opportunities beyond Indian roads. Penetration in the US market could be gradual due to uncertainties on tariffs.

In FY25, CEAT made tangible inroads into various international markets. The company secured a 1–2.5% market share in the Passenger Car Radial (PCR) tyre segment across Greece, Italy, Ireland, and the Philippines. Truck and Bus Radial (TBR) tyres also found new ground, with market share rising between 1–5% in Bangladesh, Brazil, Ireland, and the UAE. Meanwhile, in the two-wheeler category, CEAT achieved 2–12% market share in countries including Ethiopia, Bangladesh, Colombia, and Kenya.

To further bolster its international portfolio, CEAT is set to integrate Camso, a compact construction tyre and tracks company. Camso revenue is EUR 150 million, and results will be consolidated Q2FY26 onwards. Camso is in the compact construction tyres and tracks segment, and the addressable market is EUR 1 billion-plus. Revenue fell due to weakness in the underlying market. The combination of Camso and CEAT provides a comprehensive coverage of the OHT space.

While the Camso addition boosts the company's presence in the off-highway tyre (OHT) segment, challenges loom in the form of U.S. tariffs—an area where CEAT is treading cautiously. “Management expects a 4% tariff on the tracks business and a 44% tariff (in the worst-case scenario) on the tyre business,” the company revealed.

Talking about raw material costs, the company highlighted that it is likely to be flat or fall by 1% QoQ in Q1FY26. Furthermore, the management believes raw material costs will come down further in Q2FY26 due to lower crude prices.

As per a Nuvama research report, CEAT's capex spending in FY26 shall be in the range of Rs 9–10 billion. In Camso, capex of EUR 25 million is likely over two years.