Indian is becoming a main tire exporter in the world

With U.S. and EU collecting anti-dumping and anti-subsidy on Chinese tires, China's tire export dove in recent years. When Chinese tire companies were still on the way suing those punishment taxes, Indian tire companies has completed self-developing and oversea manufacture, walking in two ways which helped them avoiding Chinese tire companies' difficulties.

"Indian tire export has reached 15% of overall tire production in 2018," said Rajiv Budhraja, Director General of Automotive Tyre Manufacturers' Association in India in Guangzhou.

Compared to thousands of tire companies in China, there were 41 tyre companies, building up 62 tyre plants in India, creating 8 billion dollars o industry turnover in India and exported 1.5 billion dollars of tires from India.The last 10 years have been one of the most eventful and productive phases in Indian tyre industry history.

A challenging India you may not know

Rajiv said on China Rubber Conference on March 23 that with global economics including China slowing down, India's growth to be driven essentially by domestic economy and expected to keep at least 7.5% of growth during 2019 and 2020. 

With strong economy driven, India has overtaken China to become the largest two wheelers manufacturer in the world, and it also overtook Germany to become the 4th largest auto market in the world in 2017, and is expected to reach over 6 million units of car market by 2020, increasing 50% compared to car  sales in 2017. 

Facing such a large and high-growth tire consumption market, there is no much chance for Chinese tire companies to share the cake.

Rajiv said Indian could be completely self-satisfied with domestic tire demand, and export from India to the world kept at at least 15% of growth in past 10 years.

Under Chinese tire export declining from 2018, India would be a main tire exporter in the world, surpassing China's tire export in the next few years.

Indian government's protectionism and Indian companies' going out

Rajiv said India has emerged as preferred destination for Greenfield and Brownfield investments in the tyre sector. Six out of top 10 global tyre majors have a manufacturing as well as marketing presence in India. At the same time, leading Indian tyre manufacturers have turned multinational with manufacturing facilities outside India.

Different from Chinese tire companies, Indian companies set up factories in U.S., Brazil and other countries outside Asia, which could cover customers from US、EU, Africa and so on.

At the same time, those Indian overseas companies could avoid anti-dumping tax collected from US,EU etc., which were collected heavily on Chinese tires.

Meanwhile, Indian government levied anti-dumping tax on tires imported from China. 

According to a document released on last Wednesday by the Directorate General of Trade Remedies, a department of India’s Department of Commerce, the investigation is taking place in response to a submission filed by local industry representative the Automotive Tyre Manufacturer’s Association (ATMA) on behalf of tyre makers Apollo Tyres, J. K. Tyre & Industries, MRF and Ceat. Should the allegations be verified, the department will recommend implementing up to 17.57% of countervailing duties on tires imported from China.

Chinese tire industry is facing an embattled situation in the world, how to break through over-supplied tire production in China and trade barriers overseas. Maybe it is the time to look around others besides China.