Curbs on tyre imports will boost local production: ATMA

Automotive Tyre Manufacturers Association (ATMA) on Wednesday said restrictions on import of tyres will pave the way for increased domestic production while accelerating exports besides unlocking job creation potential.

Stating that 'indiscriminate import of tyres has been the bane of the tyre industry in India;, ATMA said most of the imports are from China which accounts for over 40 per cent of Truck and Bus Radial (TBR) tyres and passenger car radial (PCR) tyres shipments to India from overseas. In case of tractor tyres, Chinese import is three-fourths of total import. The government had on Friday imposed curbs on imports of certain new pneumatic tyres used in motor cars, busses, lorries and motorcycles in a move to promote domestic manufacturing.

"The move has come as a sentiment booster for the industry that has been bearing the brunt of the slowdown in the auto sector and disruption caused by Covid-19 pandemic. Emboldened by the development, the tyre industry in India is looking at better than expected domestic production and increased exports from the country," ATMA Chairman K M Mammen said in a statement. He further said, "Domestic manufacturing capacity is ahead of the demand curve and India is self-sufficient in manufacturing practically all kinds of tyres including tyres for critical applications like fighter jets. Most of the imports are unwarranted and have been hurting capacity utilisation in domestic manufacturing."

Citing data from Directorate General of Commercial Intelligence and Statistics (DGCI&S), ATMA said in the financial year 2019, tyres worth $429 million were imported in India. "Even in the first 11 months of financial year 2020, a year that witnessed an economic slowdown in India and hence reduced demand, tyres worth $385 million landed in India," it added.

According to ATMA, total tyre production in India declined by 8 per cent to 177 million in 2019-20 fiscal due to reduced demand in both replacement and Original Equipment Manufacturer (OEM) segments.