Chinese tyre imports hit roadblock, says ATMA

Import of truck and bus radial (TBR) tyres from China tyres have declined by more than half thanks to the double bonanza of demonetisation and implementation of goods and services tax.

Published: 26th November 2017 09:29 AM  |   Last Updated: 26th November 2017 09:29 AM   |  A+A-

By Express News Service

CHENNAI: Import of truck and bus radial (TBR) tyres from China tyres have declined by more than half thanks to the double bonanza of demonetisation and implementation of goods and services tax, coupled with imposition of anti-dumping structure, according to Automotive Tyre Manufacturers Association.
Noting that import of chinese tyres has started to ‘decline’, ATMA chairman Satish Sharma on Saturday said, “while the imports of Chinese tyres stood at 1,50,000 units in May 2016, today it is 50,000 units and still going down.”

The tyre dealers and domestic manufacturers have been at loggerheads over the import of TBR tyres into the country. However, Sharma said that the dealers are now confident on not purchasing these tyres as their  “profitability” has also crashed. During demonetisation, imports dropped by 20 per cent. With GST, coupled with anti-dumping duty, it has started to sink further, he added.

Reiterating that the growth of tyre industry is pegged at “high single” digits during the current fiscal, he forecast that it would register “high double digit” growth in FY18-19. Stating that India was not producing radial tyres when the world was looking for radial tyres a decade ago, Sharma said, “now we are producing radial tyres, we are re-entering the world market and the world has taken note of this”. He added India signing free trade agreements would also give support to the industry.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

facebook twitter whatsapp