The Hindu Business Line : Tyre industry worried over Chinese imports

New Delhi, July 19 Close to five-and-half lakh truck and bus tyres were imported from China between April and December 2006 against just over three lakh units during the entire financial year 2005-06.

Recently an article in The New York Times had stated that the federal authorities have told a New Jersey based importer to recall 4.5 lakh radial tyres after the company disclosed that its Chinese manufacturer had stopped including a safety feature that prevented the tyres from separating. This is also causing concern in the Indian tyre industry as the quality of tyres which are being imported from China vary from extremely poor to good.

“The quality of an Indian tyre and a Chinese tyre cannot be compared. Indian tyres are exported to around 80 countries around the world and we have no complaints from anywhere on the quality. Personally, I think the concern of safety of Chinese tyres in the US has thrown new light on the defects in them,” Mr Arun K. Bajoria, President, JK Tyre and Industries Ltd, said.

According to him, the proposal of the Directorate-General of Anti-Dumping and Allied Duties to the Finance Ministry on increasing the definitive dumping duty on tyre imports from China is a move which would help curb the unfair practices. The Directorate-General has recommended that the definitive dumping duty on tyre, tube and flaps set be $135.65 against the existing $99.3.

“We cannot totally curb the imports from China because of the trade agreements but what we are asking for is a level playing field. The quality of the Chinese tyre is far inferior when compared to what we manufacture in India not only in terms of the quality of rubber used but also in terms of mileage,” said an industry source.

The source added that the prices of a Chinese tyre are 10-40 per cent lower than the price of an Indian tyre. For example, a bias truck and bus tyre, tube and flap manufactured by an Indian company would cost Rs 11,000 where as a Chinese tyre would cost Rs 8,250.

“The cost difference between the tyres which are imported from other countries to those manufactured in India is around 10 per cent but when it comes to Chinese tyres it is anywhere between 10 per cent and 40 per cent. Then there is the issue of undervalue and under invoicing of Chinese tyres which is a cause of concern for the Indian industry,” the source said.

Another alarming factor which is a major cause of concern is the admission by a Chinese manufacturing company on using low grade cheaper raw materials in the tyres which are exported to India. “The goods sold in the domestic (Chinese) market contain less amount of clay and higher percentage of sheet rubber and natural rubber as compared to the goods sold in the Indian market,” the Chinese company told the Anti Dumping Investigation.

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