Truck and Bus Radial (TBR) tyre imports in India has gone up by 30% in the first half of FY 2016-2017 compared to the same period last year, and the domestic tyre industry is calling for urgent announcement of anti-dumping duty.
Dumping of TBR tyres at such a large scale is also adversely affecting the interests of rubber growers in the country as the TBR tyre segment is where the primary consumers of domestic natural rubber are. While import duty on natural rubber is 25% in India, import of tyres from China attracts just 7% duty.
National tyre industry body Automotive Tyre Manufacturers Association (ATMA), in its communication to India’s Ministry of Commerce and Industry, has asked to facilitate the process of imposition of anti-dumping duty on import of Truck and Bus radial tyre imports from China.
“Import of TBRs has crossed the level of 140,000 units per month in FY2016-2017 from 40,000 units per month in FY2013-2014, an increase of about 400% in three years.
There is no reprieve from indiscriminate import and dumping of radial tyres from China. Such large scale imports are gravely hurting the domestic manufacturing of TBR,” said K. M.Mammen, Chairman, ATMA.
Most of the Rs350 billion new investments by the tyre industry in India in the last three to four years has been directed towards setting up TBR capacities.
With expansion in capacity, the capacity utilisation levels have come down to 60-65% in TBR manufacturing from 80-85% a couple of years ago.
China dominates as the source country for import of TBR in India with a share of 94% in 2016-2017. China’s share in total TBR import was 40% in 2013-2014, 70% in 2014-2015, and 90% in 2015-2016.