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Domestic Tyre Production, Exports Contract in April-July

Production, export of domestic tyre industry witnesses a contraction in the current financial year, reveal statistics released by ATMA.

Published: 08th December 2015 03:40 AM  |   Last Updated: 08th December 2015 03:40 AM   |  A+A-

KOCHI: Both production and exports of domestic tyre industry have witnessed a contraction during the current financial year, show the latest statistics released by Automotive Tyre Manufacturers Association (ATMA).

The production of medium and heavy commercial vehicle tyres that adds about 60 per cent to the topline of tyre industry in India is down by two per cent in the first four months of current fiscal against the year-ago period. A larger drop of 11 per cent has been witnessed in light commercial vehicles (LCVs) and small commercial vehicle (SCVs) tyres.

“Tyre industry is passing through a difficult year as production growth is not only slackening but contraction is being witnessed across key tyre categories. What is of greater concern is that fall in production in tyres is being witnessed even as automobile industry is coming out of recession. Massive surge in dumping of cheap  tyres from China is meeting a significant domestic demand while domestic capacities are lying unutilised”, said Raghupati Singhania, Chairman, ATMA.

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Tyre production has also been impacted by consistent drop in agriculture tyres production which has fallen for second successive year. Both tractor front and tractor rear tyre production has dropped by 11 per cent and 13 per cent respectively.

While passenger car tyres have seen a growth of 7 per cent during the current fiscal, it was 13 per cent during same period last year.

Exports of medium and heavy commercial vehicle tyres is down by 5 per cent.

Passenger car tyres have seen a much sharper drop of 18 per cent. A steep import duty of 25 per cent on natural rubber is leading to higher cost of production in India impacting industry’s competitiveness”, Singhania added.

Export accounted for 23 per cent of total production of medium and heavy commercial vehicle tyres in 2004-05, it has come down to 12 per cent during the current fiscal.



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