Cheap quality Chinese tyres burning a hole in the Indian tyre industry
The cheap Chinese imports of tyres have resulted in burning rubber in the Indian tyre industry. The large inundation of imported tyre during the last 12 months have caused the Indian companies a lot of heat burn in the truck, bus and car radical replacement market. Sources in the tyre industry revealed that, already imported tyres consists a lurching 20% of the car and 25% of the truck radial replacement market which makes the import segment market leaders benefit a lot instead of biggies like JK Tyre, Apollo, MRF or Ceat. However the tyre dealers says that the imports of these tyres would meet the local quality standards, and are duly certified by the BIS and are way cheaper than the Indian tyres, as the reason being the reduction in the raw material prices. With both the domestic industry and the tyre dealers clamoring action from the government, the issue is expected to create a rough patch. The contention comes to 3-3.5 lakh units per month truck radical replacement market and 12-14 lakhs unit of car radical replacement market. Meanwhile for the vehicles coming with Indian tyres, replacement demand is picking up calling for imports from Taiwan, Korea and China. The AITDA (All India Tyre Dealers Association) has now locked its horn with the domestic industry and is soliciting that no anti-dumping duty to be imposed on imported tyres. However the domestic industry still has anti-dumping duty imposed on the trucks and bus radical imports, so that the local market is not affected.
July 29, 2015 | 7:40 pm IST.