The Automotive Tyre Manufacturers Association (ATMA) stated that the restrictions on tyre imports will lead to an increase in the domestic production of tyres. It was mentioned by the ATMA that the curb on import will result in increased job opportunities besides accelerating the domestic market's potential in production of tyres.
ATMA stated that most of the imports are from China which covers 40 percent of Passenger car radial (PCR) and Truck and Bus Radial (TBR) tyres shipments to India. In the case of tractor tyres, Three-fourths of the total import is from China.
The Government of India had imposed a restraint on the imports of certain new pneumatic tyres used in cars, motorcycles, trucks etc. to promote the domestic production of tyres.
According to ATMA Chairman KM Mammen, The decision to place a curb on import of tyres from overseas has boosted the domestic tyre manufacturing industries that had been facing economical slow down due to the COVID-19 pandemic as well as the slowdown of the automobile sector. The Tyre manufacturers are happy with this latest development and is expecting growth of their domestic manufacturing units in terms of production and sales of tyres in India.
Also See:Govt. Imposes Restraint On Import Of New Pneumatic tyres
As per the data from Directorate General of Commercial Intelligence and Statistics (DGCI&S) which ATMA had cited states that in the financial year 2019, USD 429 million worth of tyres were imported in India.
It was discovered that even in the first 11 months of the financial year 2020 that witnessed an economic slowdown and reduced demand for domestic tyres, USD 385 million worth tyres landed in India.
As per the data of ATMA, the total tyre production in India declined by 8 percent to 177 million in 2019-20 fiscal due to reduced demand for both the replacement and OEM segments. Truck and bus tyre segment in India accounting for over 50 percent of revenue had witnessed the worst drop in production of 14 percent .
However, Mammen also stated that the import restriction will increase the value chain and the demand for domestic Natural rubber.
