A surge in import of tyres, even as the auto sector is coming out of a protracted slump, has put the domestic tyre industry in a tight spot, the Automotive Tyre Manufacturers Association (ATMA) has said.

ATMA, in a communication to the Commerce Ministry, pointed out that there is a concerted move to dump radial tyres in India so as to blunt the country’s edge in technologically superior radial tyre manufacturing.

The tyre industry in the country has put in investments to the tune of ₹20,000 crore in manufacturing hi-tech radial tyres in the last 3-4 years. However, a significant capacity is lying unutilised since the demand is being met by imported radials, largely dumped into India from China, it said.

The truck and bus radial tyres (TBRs) which account for a significant part of new manufacturing capacities put in by tyre manufacturers in India have seen a significant jump in imports. TBR imports are up by 60 per cent from around 4.9 lakh tyres in FY 2013-14 to 7.8 lakh tyres in FY 2014-15.

The tyre industry has been promoting the usage of radial tyres in commercial vehicles for reasons of fuel efficiency and safety and has invested heavily so as to be ahead of the demand curve. However the imports of tyres, particularly truck and bus radials have been taking place indiscriminately and at low prices.

Some cases of Chinese imports are even below the cost of raw materials that go in the making of a truck and bus tyre. This is causing huge injury to the domestic tyre manufacturers, Raghupati Singhania, Chairman, ATMA said.

social-fb COMMENT NOW