Imported tyres hit domestic mkt

Globalisation, open economy and free trade may have their advantages but they are also not without risks. If we take the case of tyre dealers of domestic tyre manufacturers, they are hit hard as the market gets flooded with used or second hand tyres, popularly known as 'Japani tyres' locally.

Automobile users in the region are going whole hog to lap them up, however at the cost of safety. The main consideration to go in for them is that they are available for less than half the price of a new tyre manufactured by an Indian company. A large number of such tyres are sold in the Burail area of Chandigarh.

These tyres are available for trucks, cars, two-wheelers etc. Most of the taxis are already running on them. In such a scenario, it's natural that the Indian tyre industry, distributors and dealers should be a worried lot.

Talking to local traders revealed that the industry has already been at the receiving end as, according to them, the over Rs 1,000-crore annual business in the region has gone down by at least 40 per cent. They say that these used tyres are brought in containers from Bombay after being wrongly classified as waste, scrap, retreaded, cut or reclaimed rubber and are distributed all over India.

The next problem, they fear is the sale of alloy rims, which will give Indian alloy rim manufacturers run for their money. Price is the main attraction for 'Japani tyres'.

A seller of Japanese tyres in Burail village here said, "These tyres are suitable for all makes of cars. Maruti 800 tyre costs around Rs 600 and for Indica Rs 750, whereas the tyre manufactured by Indian company costs around Rs 1350 and Rs 1,950 respectively".

These prices are even less than half the cost of Indian manufactured tyres. The tyres from the domestic companies have also been going up, giving boost to the sales of these used tyres. Almost 75 per cent of the middle class car owners go in for these tyres as replacement.