Reiterating its demand for early imposition of anti-dumping duty on import of truck and bus radial (TBR) tyres from China, Indian Automotive Tyre Manufacturers Association (ATMA) said that imports have risen 9 per cent in FY17.
Quoting latest statistics, ATMA revealed that TBR imports have been spiralling upwards in the last few years and the figure has touched a new high of 1.2 lakh units per month in FY17 from 40,000 units per month in FY14.
Imported tyres have come to account for 40 per cent of the replacement demand for TBR in India causing a severe blow to the domestic industry which has put in hefty investments in TBR manufacturing, ATMA has said.
TBR has emerged the growth driver for the industry. Unfortunately, indiscriminate import has queered the pitch for domestic tyre sector. With expansion in capacity for TBR, the capacity utilisation levels have come down to 60-65 per cent from 80-85 per cent three years ago, said Satish Sharma, Chairman, ATMA.
More than 90 per cent of TBR import is taking place from China and its share in the import pie has risen from 40 per cent in FY14 to 92 per cent in FY17.
While import duty on natural rubber is 25 per cent in India, import of tyres from China attracts just 7 per cent duty which is aiding in the import of tyres.
Dumping of TBR tyres at such a large scale is also adversely affecting the interests of rubber growers. Truck and bus tyres are primary consumers of domestic natural rubber. However, domestic demand for tyres is being increasingly met by C
