Higher import duty on radial car tyres won't have major impact on domestic industry: ICRA

The higher customs duty imposed on passenger car radial tyres is unlikely to have a major impact on the Indian tyre industry, according to credit ratings agency ICRA.

The government had Wednesday increased basic customs duty on import of passenger car radial (PCR) tyres, from 10 per cent to 15 per cent effective from September 27, 2018.

"ICRA expects the duty hike to have no major impact on the Indian tyre industry," the credit ratings agency said in a statement.

Explaining the reasons, ICRA Vice-President Srikumar K said, "The 500 bps rise in customs duty on PCR tyre imports is unlikely to have a major impact on the Indian tyre industry as PCR tyres imports account for less than three per cent of overall tyre industry (in value) and meet only (around) 13 per cent of domestic PCR demand."