Estimation question

How many passenger car tires will be sold in financial year 2022-2023 in India?

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What this question tests

Whether the candidate can build a market sizing estimate using vehicle population, replacement cycle, and regional context in India.

How to approach it

  1. State scope: assume passenger car tires sold in India in FY22-23, including both new-vehicle original equipment tires and aftermarket replacement tires.
  2. Estimate India's passenger vehicle installed base, roughly 40 to 45 million cars on the road, as a stated assumption.
  3. Assume an average tire replacement cycle of roughly 3 years per set of 4 tires, meaning roughly one-third of the fleet replaces tires annually.
  4. Calculate replacement tires: 42 million cars divided by 3, times 4 tires, gives roughly 56 million replacement tires per year.
  5. Add new vehicle sales: roughly 3.5 million new cars sold annually times 4 tires gives roughly 14 million, for a total estimate of roughly 65 to 70 million tires.

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