Post News Network
Bhubaneswar, April 13: With rise in dumping by China, domestic tyre manufacturers are facing stiff competition in the recent time and have sought protection from the government in the form of anti dumping duty, Automotive Tyre Manufacturers’ Association (ATMA) said.
“The indiscriminate import and dumping of tyres to India from China has created a stiff challenge for the domestic tyre manufacturers. Truck & bus (T&B) radial tyres are the major growth drivers for tyre industry in India. However imports of such tyres into India have grown over 250 per cent during the last two years,” the official of ATMA said. He also said most of the recent investments in tyre industry are also directed towards T&B radial tyres segment.
On increased imports, the official said China’s share in imports has increased significantly in the last three years. Currently, China accounts for about 90 per cent of the total truck & bus radial tyres import in India. “Such surge in import is leading to under utilisation of domestic capacities in India. However, despite surging imports, market size of tyre industry has grown to Rs 50,000 crore in FY15 from Rs 47,500 crore in FY14,” he said adding the turnover during FY13 was Rs 46,000 crore. He also said the industry is in discussion with the government for bringing in measures to curb the indiscriminate import of tyres in India. On the overall production trend, “Tyre manufacturing is shifting to Asia. India is perceived as the emerging growth driver for tyre manufacturing. That has led to enhanced interest and investments from both domestic tyre majors as well as multinationals,” he said. “Investment of around Rs 36, 000 crore ($6 bn) has been committed in tyre manufacturing space,” he added.