Cheap Chinese imports to put pressure on Indian tyre industry

Margins to be further squeezed with Rs 36,000 cr invested in building domestic capacity

With intense competition in the market place, tyre majors are of the opinion that the days of higher industry profit margins are most likely over. An expected hardening of raw material prices, plus excess capacity in the industry, would see a boost in competition. Moreover, the price hike, which the companies announced, has not been absorbed by the market.

It is, therefore, critical for companies to protect their turf in the commercial tyres and the two wheeler segments, which will be under severe pressure in the years to come. ATMA has also reported about investments of $5.5 billion (about Rs