Stating that “indiscriminate import of tyres has been the bane of the tyre business in India”, ATMA mentioned a lot of the imports are from China which accounts for over 40 per cent of Truck and Bus Radial (TBR) tyres and passenger automotive radial (PCR) tyres shipments to India from abroad.
In case of tractor tyres, Chinese language import is three-fourths of complete import.
The federal government had on Friday imposed curbs on imports of sure new pneumatic tyres utilized in motor vehicles, busses, lorries and bikes in a transfer to advertise home manufacturing.
“The transfer has come as a sentiment booster for the business that has been bearing the brunt of the slowdown within the auto sector and disruption attributable to COVID-19 pandemic. Emboldened by the event, the tyre business in India is higher than anticipated home manufacturing and elevated exports from the nation,” ATMA Chairman Ok M Mammen mentioned in a press release.
He additional mentioned, “Home manufacturing capability is forward of the demand curve and India is self-sufficient in manufacturing virtually all types of tyres together with tyres for crucial purposes like fighter jets. Many of the imports are unwarranted and have been hurting capability utilisation in home manufacturing.”
Citing information from Directorate Normal of Business Intelligence and Statistics (DGCI&S), ATMA mentioned within the monetary 12 months 2019, tyres value USD 429 million had been imported in India.
“Even within the first 11 months of monetary 12 months 2020, a 12 months that witnessed an financial slowdown in India and therefore diminished demand, tyres value USD 385 million landed in India,” it added.
In accordance with ATMA, complete tyre manufacturing in India declined by eight per cent to 177 million in 2019-20 fiscal attributable to diminished demand in each alternative and Authentic Gear Producer (OEM) segments. The slowdown within the economic system impacted the financial and client sentiment which resulted in car gross sales plunging to a multi-year low.
Truck and bus tyre phase which is bread and butter of tyre business in India accounting for over 50 per cent of business’s income witnessed the sharpest drop in manufacturing of 14 per cent.
Mammen additionally mentioned import restrictions on tyres will profit the complete worth chain and the demand for home pure rubber (NR) will go up because the home tyre manufacturing will get a fillip.
“In view of projections in regards to the contraction of the economic system within the on-going 12 months, the tyre business was anticipating an additional drop in manufacturing. Nonetheless, the restrictions imposed on import will present elbow room for growing home tyre manufacturing in a tough 12 months,” he mentioned.