Chinese TBR Tyre Demand Increasing – Tyre Manufacturers Demand Dumping Duty

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Import of Truck and Bus Radial (TBR) tyres from China continuous to hurt domestic tyre manufacturers, as the import graph rises from 40 percent to a sizable 92 percent on the year-on-year basis. Sighting the same, the Automotive Tyre Manufacturers Association (ATMA) has once again insisted on the early imposition of the anti-dumping duties on the Chinese TBR tyre import. As per ATMA, the imports have posted a growth of 9 percent in the financial year 2017.

Latest statistics reveal shocking increment in the TBR imports in last few years. The imports have shot as high as 1.2 lakh units per month in FY17 from a meagre 40,000 units in FY14. Every passing month the import numbers of TBR tyres are strengthening, and now account for 40 percent of the replacement demand for TBR in the country. This has been injuring the interests of the domestic tyre industry, as the tyre makers in India have invested a lot in the TBR manufacturing.

A couple of years ago, TBR has come out as a growth driver for the tyre industry. However, due to an indiscriminate import of China-made TBR, the domestic tyre sector feels embittered. According to ATMA, some years ago, in view of the high demand in the TBR segment, the tyre manufacturers had increased the TBR production capacity in their respective plants. But due to the Chinese import the capacity utilisation levels have dropped to 60-65 percent from 80-85 percent.

It is to be noted that more than 90 percent of TBR import in the country is sourced from China. Generally, natural rubber import in India attracts a duty of 25 percent, whereas the import of tyres from China draws a duty of mere 7 percent. This is wildly assisting the import of tyres. Besides this, rubbers growers in India too are feeling the pinch of TBR tyres being dumped at such huge scale.