Radial tyre sees import surge,industry seeks anti-dumping duty

Truck and bus radial tyres (TBR) import surged nearly 30 per cent in the first half of 2016-17, prompting industry body ATMA to ask the government to impose anti-dumping duty on imports from China.
In April-September period of this fiscal, 8.45 lakh TBR tyres landed in India compared with over 6.56 lakh in the corresponding period a year ago.
Import of TBRs has crossed the level of 1.4 lakh units per month in the current fiscal from 40 thousand units per month in FY 2013-14, an increase of about 400 per cent in three years, Automotive Tyre Manufacturers Association (ATMA) said in a statement.

"There is no reprieve from indiscriminate import and dumping of radial tyres especially TBRs from China. Such large scale imports are gravely hurting the domestic manufacturing of TBR," ATMA Chairman K M Mammen said.
The industry body has said the dumping of radial tyres from China has reached "unprecedented levels".
Most of the new investments of Rs 35,000 crore by tyre industry in India in the last 3-4 years has been directed towards setting up TBR capacities as it is seen as the growth driver for the industry, ATMA said.

"Unfortunately, dumping in TBRs is touching new highs even as domestic capacities are going on stream. With expansion in capacity, the capacity utilisation levels have come down to 60-65 per cent in TBR manufacturing from 80-85 per cent a couple of years ago," it added.

Currently, more than 40 per cent of the replacement demand in TBR is being met by imports while domestic capacities are faced with the prospects of ever declining utilisation, ATMA said.
China dominates as the source country for import of TBR in India with a share of 94 per cent in 2016-17. The country's share in total TBR import stood at 40 per cent in 2013-14, 70 per cent in 2014-15 and 90 per cent in 2015-16.
ATMA said the dumping of TBR tyres at such a large scale is also adversely affecting the interests of rubber growers in India.

"Truck and bus tyres are primary consumers of domestic natural rubber. However, domestic demand for tyres being increasingly met by Chinese imports, the offtake of natural rubber by tyre industry has been seriously impacted," it said.