The Indian tyre industry is hoping the government will extend policy support to enhance its manufacturing competitiveness and to take on the unethical Chinese competition.

“Given the maturity, advancements in technology and job-generating potential, this industry could be a poster boy for the government, just like the IT industry. Our quality is world-class and our exports could be propelled to another level,” Satish Sharma, Chairman, Automotive Tyre Manufacturers’ Association (ATMA), and President - Asia Pacific, Middle East and Africa, Apollo Tyres, said here.

Presently, exports account for 15 per cent of the ₹50,000-crore industry, and this could be doubled in about three years with policy support.

“In the past three years, tyre manufacturers invested about ₹40,000 crore,” he added.

“We are going to meet Commerce Ministry officials to discuss the potential, while we have commissioned a study by a third party to explain to the government the competitiveness of India compared with other countries,” Sharma said.

“Th tyre industry has welcomed several global players. While we welcome competition, we need a fair playing field to play to our potential.”

The industry has been informing the government about what it calls the unethical ways Chinese tyres are being sold in India. “They have been evading taxes; transactions happen through cash. None of the stakeholders are getting any benefits because of this,” he added. Significant drop in sales of Chinese tyres during the quarter after demonetisation is a clear example of how that trade is exploiting the Indian market, he said.

Though both demonetisation and the transition to GST have given a breather of 5-6 months by way of lower Chinese tyre sales, imports have started to increase in the recent weeks. In FY2017, it accounted for 30-40 per cent share in the replacement market.

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