Along with the automobile industry in India, the tyre sector is also growing rapidly, especially as the demand for electric vehicles and smart mobility solutions is increasing. In such a situation, it becomes important for investors to know which tyre company can prove to be a good investment in the long run.
Apollo Tyres Ltd. and Ceat Ltd. are both well-known companies in the Indian market, whose business operations are spread across the country and abroad. Their different business strategies, focus on technology and future direction make them different from each other.
In this blog, we will analyze both these companies in-depth including their business model, financial health, expansion plans and market performance to help you understand which company is a better investment option.
Company Overview – Apollo Tyres Ltd
Apollo Tyres Ltd. was established in 1972 and today it is counted among the leading tyre companies in India. The company’s headquarters is located in Gurugram, Haryana. Over the past five decades, Apollo has established a strong presence in the domestic market as well as the global market. Its growth can be gauged from the fact that its products are now sold in more than 100 countries.
- Manufacturing and International Network : Apollo has several modern manufacturing facilities in India, such as plants located in Chennai, Limbda (Gujarat), and Andhra Pradesh. Apart from this, the company also has manufacturing units in the Netherlands and Hungary. Thus, this Indian company has now become a global tyre manufacturer. The company’s strong supply chain and technology innovation help it in its global competitiveness.
- Product Portfolio and Segments : Apollo Tyres manufactures tyres for passenger cars, SUVs, trucks, buses, light commercial vehicles and two-wheelers. In India, it operates under the brand name “Apollo”, while in Europe it has its presence under the name “Vredestein”. The company maintains a balanced focus on mileage, performance, and safety.
- Business Model and Partnerships : Apollo Tyres’ business model is based on three major channels – OEM (such as Tata, Mahindra, and Ashok Leyland), replacement market, and international exports. The company is also continuously working on tyres for EVs and high performance vehicles.
Apollo Tyres Ltd. has established itself as an innovative and globally competitive brand in the Indian automobile industry. Its strong manufacturing capabilities, international expansion, and product diversity allow it to grow even stronger in the years to come.
Company Overview – Ceat Ltd.
Ceat Ltd. was founded in 1958 with roots in Italy but was later established in India and is now part of the RPG Group. The company initially manufactured tyres for commercial vehicles but over time also started manufacturing tyres for two-wheelers, passenger vehicles, agricultural and industrial vehicles. Today, Ceat is among the top tyre companies in India and is constantly expanding its portfolio.
- Global Positioning and Production Capacity : Ceat tyres operations are no longer limited to India. The company exports its products to over 110 countries. Its major manufacturing plants in India are located in Nashik, Halol, Nagpur and Chennai. In recent years, the company has prioritised EV tyre manufacturing at the Nagpur unit, reflecting its future-focused vision.
- Key Businesses and Services : Ceat manufactures tyres across various segments such as two-wheelers, cars, SUVs, trucks, buses and three-wheelers. Apart from this, the company also designs tyres for farm equipment and off-road vehicles. The brand identity is based on the balance of mileage, safety and performance. The company actively operates in both OEM and replacement markets.
- Business Model and Market Approach : Ceat sells its tyres through three main channels: OEM (to auto companies), replacement (to customers), and export. It is also a supplier to prominent automobile companies like Bajaj Auto, Hero MotoCorp, Tata Motors and Mahindra. The company is now focusing on tyre technology for EV vehicles as well.
Ceat Ltd. has built an image of a trusted tyre brand keeping in mind the needs of Indian roads and consumers. Its production capacity, investment in technology and diversified product range make it ready for future demands.
Read Also: Mahindra & Mahindra vs Tata Motors: Which is Better?
Comparative Analysis: Apollo Tyres Ltd. vs Ceat Ltd
| Particulars | Apollo Tyres Ltd | Ceat Ltd |
|---|---|---|
| Current Price (₹) | 470 | 3,792 |
| Market Cap (₹ Crores) | 29,850 | 15,339 |
| 52-W High (₹) | 585 | 4,044 |
| 52-W Low (₹) | 368 | 2,322 |
| FII Holdings as of March 2025 | 13.43% | 15.27% |
| DII Holdings (as of March 2025) | 28.09% | 21.52% |
| Book Value (₹) | 232 | 1,080 |
| PE Ratio | 24 | 31.1 |
Financial Statements Analysis
Income Statement Comparison
| Particulars | Apollo Tyres Ltd | Ceat Ltd |
|---|---|---|
| Total Income | 26,211 | 13,235 |
| Total Expenses | 24,218 | 12,336 |
| EBIT | 1,992 | 899 |
| Net Profit | 1,120 | 449 |
Balance Sheet Comparison
| Particulars | Apollo Tyres Ltd | Ceat Ltd |
|---|---|---|
| Current Liabilities | 7,360 | 5,164 |
| Current Assets | 9,815 | 3,432 |
| Reserves & Surplus | 14,702 | 4,328 |
Cash Flow Statement Comparison
| Particulars | Apollo Tyres Ltd | Ceat Ltd |
|---|---|---|
| Cash Flow from Operating Activities | 1,823 | 1,091 |
| Cash Flow from Investing Activities | -202 | -922 |
| Cash Flow from Financing Activities | -1,646 | -176 |
Key Performance Ratios (KPIs)
| Particulars | Apollo Tyres Ltd | Ceat Ltd |
|---|---|---|
| Operating Profit Margin (%) | 8.27 | 7.02 |
| Net Profit Margin (%) | 4.28 | 3.40 |
| ROE (%) | 7.59 | 10.81 |
| ROCE (%) | 10.83 | 15.36 |
| Debt to Equity (x) | 0.23 | 0.44 |
Read Also: MRF vs Apollo Tyres: Which is Better?
Future Plans – Apollo Tyres Ltd. vs Ceat Ltd.
Apollo Tyres Ltd.
- Target of $5 billion revenue and 15%+ EBITDA margin by FY26 : Apollo Tyres aims to achieve $5 billion (approximately ₹41,500 crores) revenue and over 15% EBITDA margin by FY 2025-26. For this, the company has focused on five key areas: sustainable growth, digitalization, technology innovation, human resource development, and brand building.
- Target to use 40% sustainable materials by 2030 : Apollo Tyres has set a target to use 40% sustainable materials in its tyres by 2030. The company has recently developed tyres made from 75% sustainable materials, which are now in the testing phase.
- Improving production efficiency through digital innovation centers : Apollo Tyres has set up digital innovation centers in Hyderabad and London, which are improving production efficiency using technologies such as AI, machine learning, IoT, and cloud computing.
- Targeting $500 million sales in the US : Apollo Tyres is currently doing sales of $120-130 million in the US and plans to increase this to $500 million.
Ceat Ltd.
- Target to double export revenue to ₹4,000 crore by FY26 : Ceat Ltd. aims to double its export revenue to ₹4,000 crore by FY 2025-26, with a special focus on expansion in the car and truck tyre segment.
- Leading position in the EV two-wheeler tyre segment : Ceat Ltd. has partnered with companies like Ather Energy in the EV two-wheeler tyre segment, giving it a strong presence in EV segment.
- Capital expenditure of ₹1,000 crore in FY25 : Ceat Ltd. has set aside ₹1,000 crore for capital expenditure in FY 25, focused on capacity expansion at its Chennai and Ambarnath plants.
- ₹72.67 crore investment for EPR compliance in FY24 : Ceat Ltd. has invested ₹72.67 crore in FY 2023-24 under EPR (Extended Producer Responsibility) compliance and introduced eco-friendly tyres.
Who is better: Apollo Tyres or Ceat Ltd.?
Apollo Tyres and Ceat Ltd.both have their own strengths. Apollo is currently focused on innovation, sustainability and international growth. The company is working rapidly on strengthening its foothold in the US and adopting the latest technology.
On the other hand, Ceat is focused on the EV tyre segment, where it is already a leading supplier to EV manufacturers Ather. Also, the company is preparing to double its exports and is also increasing production capacity.
Both companies are moving in slightly different directions, and are adopting different strategies to solidify their market position. It is hard to say which one is better and you must thoroughly analyze both companies or consult a financial advisor before investing.
Conclusion
Apollo Tyres and Ceat Ltd. have both established themselves as a strong player in the tyre industry in their own ways. Apollo is expanding itself in the international market, while Ceat is focusing on electric vehicles and exports. Each company has a different business strategy, however both are trying to gain a better foothold in the tyre market. It is advised to consult a financial advisor before investing.
Frequently Asked Questions (FAQs)
Which company is older: Apollo Tyres or Ceat Ltd.?
Ceat Ltd. was established in 1958 while Apollo Tyres was started in 1972.
Is Apollo Tyres a global brand?
Yes, Apollo Tyres products are present in many countries including Europe and the USA.
Does Ceat make tyres for electric vehicles?
Yes, Ceat manufactures tyres especially designed for EV two-wheelers and supplies to many big companies.
Which company has a higher export focus?
Both the companies have export operations, but currently Ceat has set an ambitious target to double its export revenues.
Is Apollo Tyres investing in sustainability?
Yes, Apollo plans to use 40% sustainable materials in its tyres by 2030.
