New Delhi, May 25 -- Tyre firms' prospects for fiscal year 2021 (FY21) were already deflated as auto production hit a multi-year low due to the coronavirus pandemic. Hopes that the replacement market demand could lift sales is also slowly waning.

Analysts believe that tyre firms face a double-digit decline in sales in FY21.

For one, replacement tyre sales continue to be tepid even after lockdown restrictions have been eased and dealers have reopened. A pan-India dealer-check conducted by Reliance Securities Ltd stated that while April sales volume was barely 10% (of normal) for dealers, sales inched up to about 25% of normal level in the last fortnight of May.

Indeed, the lockdown has punctured hopes of replacement market sales revival...