The Hindu Business Line : Tyre exports register marginal growth

New Delhi, Sept. 4 Tyre exports for the fiscal year 2006-07 registered a marginal growth of 1.15 per cent at 54,49,560 units as against 53,87,502 units the year before. The export realisation in value terms had gone up 9.1 per cent from Rs 2,383 crore in 2005-06 to Rs 2,600 crore for the year.

“The rupee appreciation against the dollar had an impact as the monetary value would have been substantially higher and may have crossed Rs 3,000 crore,” a tyre industry source told Business Line.

According to information available on the Web site of the Automotive Tyre Manufacturers’ Association, exports of truck and bus tyres declined 5.5 per cent to 22,76,049 units during the year as against 24,08,759 units the year before.

Export of passenger car tyres also saw a decline of 8.24 per cent to 9,66,046 units in 2006-07 as against 10,52,874 units in 2005-06.

There was, however, a significant increase in exports of tyres for light commercial vehicles (LCVs), motor cycle, scooter and off the road (OTR) segments.

The exports in the LCV segment grew 15 per cent to 15,99,230 units compared with 13,90,814 units exported in 2005-06. In the motor cycle segment, exports increased 78.63 per cent to 1,51,677 units against 84,908 units the year before.

The scooter tyre exports grew 10.53 per cent to 3,20,536 units compared with 2,89,984 units in 2005-06. OTR segment exports were up 28.68 per cent in 2006-07 at 43,085 units as against 33,480 units the year before.

“Currently India exports tyres to around 65 countries and this is expected to increase significantly during the current financial year. Though the growth has been lower than when compared with 2004-05 and 2005-06, when the overall growth was around 7 per cent, there is nothing to worry about as couple of companies are in expansion mode and also they are catering to the increasing domestic needs,” another industry source pointed out.

The industry also feels companies have overcome the problems they had initially and the acceptance of Indian tyres has gone up in the last couple of years.

“According to estimates, major tyre companies in the country export 20 per cent of their truck tyre production and the continuous upgradation of quality has resulted in greater acceptance level for Indian tyres in various countries,” the source said.

The notion that India exports only bias tyres was also changing, the source added. “India had been conventionally exporting the tyres in the bias segment.

More Stories on : Tyres | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page