As the global supply chain deals with the disruptions that the Covid-19 outbreak has caused, Indian tyre industry has the potential to lead in manufacturing on a global level.

Amidst the new geo-political conflict the virus has unleashed, China is fast losing currency as the factory of the world. Led by nations such as the US and Japan, the world is looking for alternatives to China, for sourcing a host of products.

“This could be India’s moment if we are able to seize the opportunity by promoting those sectors that have earned wide acclaim and the tyre Industry certainly ranks high on that list,” KM Mammen, Chairman, Automotive Tyre Manufacturers Association (ATMA); and Chairman and Managing Director, MRF Ltd, told BusinessLine .

As the Indian tyre industry has built unique brand equity for itself, it’s time the industry is encouraged with policy support, he added.

Needs of the indusry

He said that curbs on indiscriminate import of tyres and availability of natural rubber at internationally competitive prices, through reduced duties, are two of the most genuine requirements of the domestic industry, which should be addressed with utmost urgency.

If policy enablers are in place, the tyre industry has the potential to see a significant increase in exports from India, within a short period of time, Mammen said. With a strong Make in India spirit, not only has domestic tyre industry worked for a self-reliant India, with all the tyres being manufactured indigenously, but the industry has emerged as a major exporter too.

Indian manufactured tyres are being exported to over 100 countries in the world, including the most discerning regions such as US and European countries. Exports of tyres from India are in the range of over ₹12,000 crore per annum.

Exports represent nearly one-fifth of tyre industry revenues and has been growing at strong levels in recent years (14 per cent three-year CAGR ending FY19). Enhanced acceptance of Indian tyres amidst favourable demand from overseas markets supported the growth in tyre exports, according to rating agency Icra.

“Today, India has some of the finest radial tyre manufacturing facilities in the world and the products are world class, as is evident from the rising demand of Indian tyres worldwide,” said Mammen.

A majority of international vehicle majors (OEMs) in India have been rolling out marquee models on India-made tyres, which should not leave an iota of doubt about the quality of Indian tyres, he further pointed out.

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