Modi Government imposed Anti-Dumping Duties on Chinese Tyres

Published On 2017-09-22 16:13:38By Ramit Anand 2635 views

The imposition of ADD would pave a level-playing field for the tyre makers to compete”

After series of recommendations from industry experts, Modi government finally imposed a 5 year Anti-Dumping Duty (ADD) on import of Chinese tyres, thus bringing an end to a row of months of speculations.

The ADD would be levied on import of Truck and Bus Radial tyres (TBR) from China, for a period of 5 years, with effect from September 18th,2017. The duty has been slapped on radial tyres, tubeless or tube-type, having rim diameter of 16” or above and being used in buses and trucks/lorries.

Image result for truck tyres dump

Slapping this duty came in the wake of a recommendation from Directorate General of Anti-Dumping and Allied Duties (DGAD), which, in the first place, was requested by leading brands like Apollo Tyres, J.K tyres and CEAT, to investigate the dumping of low cost Chinese tyres in the Indian markets.

These companies, along with other members of Automotive Tyre Manufacturers’ Association (ATMA), pointed towards the losses being born by Indian tyre manufacturers on account of these budget Chinese tyres. The imposition of ADD would pave a level-playing field for the tyre makers to compete.

Mr. Subrata Ray, Sr. Group Vice President, ICRA, said, “ With sizeable investments made in recent years towards creation of TBR capacities on the back of healthy long term domestic demand potential for radial tyres, rising imports had an adverse impact on industry capacity utilisation levels. With imported Chinese TBRs priced lower than domestic Truck and Bus bias (TBB) tyres, these imports made heavy inroads into the Indian T&B replacement market, eroding TBR volumes for Indian players.”

He added, “ The aggressive pricing of Chinese TBR tyres limited the competitiveness of domestic players, compounding the problem of lower rubber (raw material) prices. With the re-imposition of ADD by India and the USA ruling out ADD on Chinese tyres in February 2017, Chinese imports will become costlier, levelling the playing field for Indian T&B tyre manufacturers. We expect this will positively benefit large Indian truck tyre manufacturers.”

Tyre imports have been witnessing a CAGR of 10% in the last three years, and accounts for 7% (in value terms) of the domestic tyre industry. Out of these imports, TBR imports accounted for a considerable 43%, increasing from Rs 710 crores in FY2013 to Rs. 1420 crores in FY2017.

A striking reason for this surge in imports can be accounted to the USA’s Imposition of ADD on Chinese tyres in 2015 and the subsequent removal of ADD on such imports by the Indian government.

You Might Also Be Interested In

Latest Tyres

  • Car
  • Bike
  • Dunlop AT 20 Grand Trek
    Dunlop AT 20 Grand Trek
    265/65 R17 110STubeless
    Rs14,699
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Firestone FR500
    Firestone FR500
    185/65 R14 86HTubeless
    Rs3,491
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • UltraMile UM 551
    UltraMile UM 551
    165/80 R14 85TTubeless
    Rs3,505
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Bridgestone B290
    Bridgestone B290
    155/65 R12 77TTube
    Rs2,985
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • CEAT CZAR A/T
    CEAT CZAR A/T
    265/65 R17 12STubeless
    Rs10,380
    • iconDry Grip
    • iconWet Grip
    • iconHandling
    Contact Dealer
  • Apollo Amazer 3G
    Apollo Amazer 3G
    145/70 R12 69TNA
    Rs2,800
    • iconFuel efficient
    • iconDry Grip
    Contact Dealer
  • Pirelli P7
    Pirelli P7
    225/50 R17 94WNA
    Rs10,505
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Birla BT 444
    Birla BT 444
    5.65 R12 6PRTube
    Rs2,000
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer

Best Tyres

  • Car
  • Bike
  • CEAT SecuraDrive
    CEAT SecuraDrive
    Tubeless
    Rs4,445
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • MRF ZLX
    MRF ZLX
    Tubeless
    Rs2,495
    • iconWet Grip
    • iconDry Grip
    Contact Dealer
  • JK Vectra
    JK Vectra
    Tubeless
    Rs2,400
    • iconWet Grip
    • iconDry Grip
    • iconHandling
    • iconLow noise
    Contact Dealer
  • JK Taximax
    JK Taximax
    Tubeless
    Rs2,800
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • MRF ZVTV
    MRF ZVTV
    Tubeless
    Rs7,325
    • iconWet Grip
    • iconDry Grip
    Contact Dealer
×
Which is your city ?