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.