Business Daily from THE HINDU group of publications Friday, Mar 09, 2007 ePaper |
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Exports & Imports Industry & Economy - Tyres Jump in import of Chinese radial tyres Pratim Ranjan Bose
Kolkata March 8 Increased consumer preference for radial tyres in the conventional double or three-axle trucks and buses has reportedly led to a quantum jump in the import of Chinese truck/bus radial tyres in the country. According to leading importers and tyre dealers, though the total import of truck/bus tyres from China have not risen significantly, import of radial tyres has overtaken that of the regular cross-ply tyres during the last six to eight months. While official figures are not readily available, unconfirmed reports from leading Delhi-based importers and traders suggest that about 40,000-45,000 truck/bus radial tyres mostly rear tyres are now imported each month from China. Import of cross-ply tyres is dropping drastically and constitutes barely half the numbers for radial tyre. "A year back, the import basket comprised over 90 per cent cheap or re-traded cross-ply tyres," said a Delhi-based importer. "This is a very interesting trend. Normally radialisation starts with OE usage. However, in India it is the replacement market which is taking the lead," says Mr S.P. Singh, convenor of the All India Tyre Dealers Federation. According to him, transporters are replacing rear cross-ply tyres priced at around Rs 24,000 a pair with Chinese radials costing close to Rs 21,000 a pair. Apart from cost advantage, the better mileage offered is a major incentive for using radials, he said. Trucks need four rear tyres. Rear tyres being load bearing in nature also wear out first.
Delhi major importer
According to available information, Delhi is the single-largest importing centre from China, followed by Indore, Mumbai, Hyderabad, Jaipur, Kanpur, Ludhiana and others. Truck centres down south and in the Eastern region, however, are yet to join the bandwagon. This is partly because of the non-availability of warranty. Anticipating a major growth in import of truck/bus radials in the coming months, Mr Singh said that roughly 550 dealers spread over 30-35 locations across India have now included Chinese tyres in their bouquet. There are approximately 3,500 truck/bus dealers. About 14-15 Chinese brands including Pearl River, Double Point, Chaoyang and others are available in the country. While the lack of after-sales and the all-cash sales for Chinese tyres are still major disincentives for fleet operators, Mr Singh says a few Chinese brands have recently started extending warranty and sales on credit.
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