An increase in prices of natural rubber in recent months in the domestic market, which has pushed up tyre prices, has also led to a flow of imports of cheap two-wheeler tyres from countries like China.
Data from the Automotive Tyre Manufacturers Association (Atma), the apex body of tyre makers, show imports rose 13 times during April-July as compared to the same period last year.
The surge in imports coincides with an equally robust demand for two-wheelers, primarily for motorcycles and scooters, which grew by 28 per cent to 3.66 million units during the same period.
Import of motorcycle tyres at the end of July, show Atma records, stood at 535,022 units as compared to just 41,051 in the same period last year. Total imports during the first four months of this financial year were more than the total for the entire previous year.
Chinese-built tyres are costing less than a third of the average price of a two-wheeler tyre in India. Further, the final price of a Chinese tyre is comparable to the cost of just the raw material input in India, according to a senior Atma official.
Rajiv Budhraja, director-general of Atma, said, “An analysis of the import data shows motorcycle tyres are even being imported at less than Rs 300 a tyre, when the proportionate cost of natural rubber used in a motorcycle tyre is more than Rs 250, considering that a typical motorcycle tyre consumes 1.5 kg of natural rubber.”
Indian tyre companies such as Ceat, Dunlop, Falcon, Apollo and JK s have raised prices by five to eight per cent since the start of the year, to offset rising input cost pressures.