Tyre industry asks govt to check cheap Chinese imports
Tyre dealers and manufacturers have also been at loggerheads over the imports of truck and bus tyres into IndiaFacing a tough fight from cheap imported products, Indian tyre industry has urged the Commerce Ministry to put strict restrictions on tyres shipped into the country by Chinese suppliers at lower rates. Terming import of radial tyres from China as “indiscriminate”, an industry body said that the prices of imported products are 25% lower than locally-produced brands. The high-capacity radial tyres mainly used in heavy vehicles are the mainstay of the industry accounting for 55% in volume and value terms. Tyre dealers and manufacturers have also been at loggerheads over the imports of truck and bus tyres into India. While the tyre manufacturers claim that cheap imports from China pose a major threat to the domestic industry, dealers are opposed to any restriction on radial tyre imports. Dealers say that import will give impetus to the use of high-capacity radial tyres in India and ultimately reduce the freight charges of transporters. The All India Tyre Dealers’ Federation (AITDF) had reportedly written a letter to the Commerce Ministry and demanded immediate measures to curb imports from China. In response to a query on tyre dealers’concern, Rajiv Budhraja, Director General, Automotive Tyre Manufacturers’ Association (ATMA), had earlier told The Dollar Business, “Indian tyre dealers opposing curbs on tyre imports only re-affirms their hidden interest and agenda of representing the vested interests of tyre importers.” According to the Automotive Tyre Manufacturers Association, the import of truck and bus radial tyres was up 91% in the first half of 2015-16 as compared to the total inbound shipment a year ago. China’s share in truck and bus radial tyre imports, which stood at 40% in 2013-14, went up to 70% in 2014-15 and has further increased to 90% in the first six months of 2015-16.
November 16, 2015 | 3:20pm IST
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