Truck/Bus tyre imports decline after domestic tyre makers slash prices
Published On 2015-12-16 21:58:51 738 views
In the month of November, the import of truck and bus radial tyres has declined by almost 50 per cent. This drop is mainly cited due to the recent price cut by domestic players that are involved in truck/bus tyre manufacturing.
The domestic manufacturers were initially reluctant to reduce the price, despite the steep fall in the natural rubber rates. Eventually, the domestic tyre makers reduced their prices by 8-10 per cent. In June this year, 106,700 units of tyres were imported while the industry saw imports of only 54,175 units in November.
Tyre dealers and manufacturers in the country have been loggerheads over the issue of rising import of low-cost tyres. A few weeks ago, the Chairman of Apollo Tyres, Onkar Kanwar, also reached out to the Government of India(GoI) and raised his concerns over the import of low-cost tyres into the country.
Read more about: Chairman of Apollo voicing his concerns
Subsequently, the Parliament was informed that GoI is looking into the anti-dumping and anti-subsidy duty investigation on the imports of truck and bus radial tyres from China. Additionally, the customs field formations were instructed to enforce the order 2009 for pneumatic tyres and tubes for automotive vehicles. This order states to restrict the import of tyres that do not sport BIS (Bureau of Indian Standards) Marking.
Read more about: Goverment looking into anti-dumping Policy.
Raghupati Singhania, Chairman, Automotive Tyre Manufacturers Association said, “Massive surge in dumping of cheap tyres from China is meeting a significant domestic demand while domestic capacities are lying un-utilised. This does not augur well for Indian manufacturing.”
“The tyre industry is passing through a difficult year as production growth is not only slackening but contraction is being witnessed across key tyre categories,” he added.