Tyre makers have started seeing capacity utilisation going up on the backdrop of demand recovery, mainly driven by the replacement market. While some players have deferred part of the capex, some have decided to expand ont the hope that demand will be better in the coming fiscal. According to Automotive Tyre Manufacturers' Association (ATMA), tyre production dropped by 30% during the first half of FY21 in view of lockdown and restrictions on mobility in the first quarter which severely hampered the production. Reduced demand from both replacement and OE segments also affected the production. Total tyre production went down by 30% YoY in the Apri-September period. Turnover was down by 5% to Rs 60,000 crore in FY 2019-20 from Rs 63,000 crore in 2018-19, first decline in more than a decade.