Nine automobile manufacturers have been asked by the Directorate General of Foreign Trade (DGFT) to present details of the manufacturers annual report on tyre imports. The government is trying to restrict the import of tyres amid the deteriorating relationship between China and India.
India had placed a restriction on tyre imports so that the Domestic rubber and tyre manufacturers could be benefited from it. This means that the original equipment manufacturers will require a license to import tyre from external sources other than India.
Last week, In a meeting, the DGFT asked the automobile manufacturers to present the reason as to why they would like to import tyres for their vehicles which is manufactured in India. DGFT has decided to consider the submissions from the Auto manufacturers so that they can decide whether to issue license to these companies to import tyres in this financial year.
Manufacturers such as Hyundai Motor India Ltd, Bajaj Auto Ltd , Eicher Motors Ltd, MG Motor India Pvt. Ltd, Honda Cars India Ltd, Mercedes-Benz India Pvt. Ltd, BMW Group India, Skoda Auto Volkswagen India Pvt. Ltd and Jaguar Land Rover India have applied for the license to import tyres from china.
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DGFT could take a decision in the coming days since the automakers have submitted their applications for receiving license to import tyres. The meeting held by DGFT was to ensure that the automobile manufacturers could state their views before the officials. Automakers are expecting their licenses in the near future.
The restriction was instated after a deadly clash between India and China where more than 20 Indian Soldiers had been killed by Chinese soldiers.
It was stated by automobile manufacturers that if they do not receive the license to import tyres from China, then they would have to suspend manufacturing of premium-high quality pneumatic tyres from China.
Luxury passenger vehicle manufactures usually import the components for their vehicles when compared to the domestic or Indian made products because the luxury passenger vehicle manufacturers produce in limited volumes. The decision to manufacture locally will depend on various aspects and the availability of opportunities. The potential to export from India also plays a key role in the manufacturing of luxury passenger vehicles made in India.
