"The truck and bus tyre import in the country has jumped by a massive 1,300 per cent during the last five years. According to data released by DGCIS&S, Government of India and corroborated by ATMA, the truck and bus tyre imports have gone up from 88,000 in 2003-04 to 12.17 lakh in 2007-08," the association said in a statement.
ATMA said most of the import is in the nature of dumping of tyres.
"These tyres, imported mostly from China, are being sold at the retail level at a price almost 30 per cent cheaper than the Indian tyres," ATMA Director General Rajiv Budhraja said.
Certain independent importers and grey market operators using unfair means such as under invoicing the import and selling at the retail level on cash basis without paying VAT have flooded the market with these tyres, he added.
"The sale of these unaccounted-for imported tyres is costing the exchequer Rs 60-80 crore per month. The customer is also a loser as these tyres are being sold without any warranty," Budhraja said.
The association said almost 85 per cent of the truck and bus tyre import is taking place through China. From an insignificant percentage five years ago, the imported tyres have come to account for 14 per cent of the 86.47 lakh replacement truck and bus segment in India.
As the vehicle manufacturers in India predominantly source tyres from Indian tyre manufacturers as original equipment (OE) fitment, the imported tyres mostly cater to the replacement market only, ATMA said.
The truck and bus segment represent the largest tyre segment in India accounting for 65 per cent of the total turnover of the Rs 20,000 crore Indian tyre industry.
"The record breaking rise in dumped tyres will adversely impact future expansion plans of the industry. Tyre industry has already lined up an estimated Rs 9,000 crore worth of projects aimed at increasing capacity and technological upgradation. There is need to immediately check the no-holds-barred entry of these tyres in India being imported through improper means," Budhraja said.
