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The ₹50,000-crore tyre industry that had pinned high hopes on correction in inverted duty in this year’s budget is saddened with tyres being left out of the sectors that have been provided incentives for domestic manufacturing.
In view of sharp surge in import of cheap tyres from China, tyre industry had hoped that import duty on tyres from China will be increased.
“We had earnestly hoped that customs duty on tyres will be enhanced so as to bring it closer to the duty on rubber. This would have really helped in enhancing competitiveness of domestic manufacturing. We do hope the Finance Minister will consider our case during the review process”, said K M Mammen, Chairman Automotive Tyre Manufacturers Association (ATMA).
Another concern for the tyre industry is the infra cess on vehicles which will increase the cost of ownership and thereby impact the off take of tyres as well.
At the same time, the industry considers emphasis on road development is a positive one. The investment of ₹97,000 crore on developing roads and highways including rural roads is a welcome move. It will give a fillip to the transport sector and help generate demand for tyres as well, he added.
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