 "Chinese tyres are 25% cheaper")
The tyre industry has urged the ministry of commerce to curb what it termed ‘indiscriminate’ import of radial tyres, particularly from China. The industry claims prices of such imported tyres are 25 per cent lower than locally-produced brands.
According to Automotive Tyre Manufacturers Association, the apex tyre manufacturers association, the import of truck and bus radial tyres was up 91 per cent in the first half of 2015-16, against the year-ago period. Truck and bus radial tyres are the mainstay of the industry accounting for 55 per cent in volume and value terms.
From an average per month import of less than 40,000 units in 2013-14, import of truck and bus radials went up to 57,000 units a month in the past year. In the first six months of 2015-16 (April-September), however, shot up to 110,000 units per month, which accounted for a significant 30 per cent of replacement sales. In the first half of this financial year, more than 650,000 truck and bus radials landed in India.
China’s share in truck and bus radials import, which stood at 40 per cent in 2013-14 went up to 70 per cent in 2014-15 and has further increased to 90 per cent in the first six months of 2015-16. India Ratings and Research says an increase in tyre imports could result in a revenue decline for the Indian tyre companies with downward pressure on both volume and pricing in the key segment of truck and bus.
Anant Goenka, managing director, CEAT, said, “Chinese products have flooded the market impacting the industry and our top-line to a certain extent.” A drop in the prices of crude and natural rubber has helped companies to tide over the Chinese dumping. Onkar S Kanwar, chairman, Apollo Tyres, said, “The problem of low-cost imports is putting at risk the entire Make in India call by the Indian government.” Lower prices are attracting price-sensitive customers, the India Ratings report said.
Raghupati Singhania, chairman and managing director, JK Tyres, said, “Lower price tag makes Chinese tyres lucrative particularly for truckers and fleet owners who need to replace them frequently. Certain vested interests are also pushing these tyres to truckers to make quick gains by evading taxes. Such practices need to be curbed.”
According to Automotive Tyre Manufacturers Association, the apex tyre manufacturers association, the import of truck and bus radial tyres was up 91 per cent in the first half of 2015-16, against the year-ago period. Truck and bus radial tyres are the mainstay of the industry accounting for 55 per cent in volume and value terms.
From an average per month import of less than 40,000 units in 2013-14, import of truck and bus radials went up to 57,000 units a month in the past year. In the first six months of 2015-16 (April-September), however, shot up to 110,000 units per month, which accounted for a significant 30 per cent of replacement sales. In the first half of this financial year, more than 650,000 truck and bus radials landed in India.
China’s share in truck and bus radials import, which stood at 40 per cent in 2013-14 went up to 70 per cent in 2014-15 and has further increased to 90 per cent in the first six months of 2015-16. India Ratings and Research says an increase in tyre imports could result in a revenue decline for the Indian tyre companies with downward pressure on both volume and pricing in the key segment of truck and bus.
Anant Goenka, managing director, CEAT, said, “Chinese products have flooded the market impacting the industry and our top-line to a certain extent.” A drop in the prices of crude and natural rubber has helped companies to tide over the Chinese dumping. Onkar S Kanwar, chairman, Apollo Tyres, said, “The problem of low-cost imports is putting at risk the entire Make in India call by the Indian government.” Lower prices are attracting price-sensitive customers, the India Ratings report said.
Raghupati Singhania, chairman and managing director, JK Tyres, said, “Lower price tag makes Chinese tyres lucrative particularly for truckers and fleet owners who need to replace them frequently. Certain vested interests are also pushing these tyres to truckers to make quick gains by evading taxes. Such practices need to be curbed.”
Further import of passenger car radials (PCR) has seen an increase of 7% in the July-September quarter in comparison to year-ago period. Average per month import figure stood slightly higher at 428,429 units in the first half of this year than 425,718 recorded in the year-ago period.
China has bolstered its position as the largest exporting country to India. As against 43% share in the PCR import pie last year, China's share went up to 48% in the first half of this year. Thailand has maintained its second largest share in the import pie and accounts for about a quarter of all PCR imported in India.
