Import of truck and bus radial tyres (TBR) has increased 60% in 2014-15 over the previous year much to the frustration of the domestic tyre industry, which is struggling to come out of a protracted slump.

TBR imports rose to 7.8 lakh tyres from 4.9 lakh tyres in 2013-14. Roughly 25 per cent of domestic replacement demand for TBRs is being met by imported tyres, according to Automotive Tyre Manufacturers' Association (ATMA).

"Tyre industry has been promoting the usage of radial tyres in commercial vehicles for reasons of fuel efficiency and safety and has invested heavily so as to be ahead of the demand curve. However imports of tyres, particularly truck & bus radials have been taking place indiscriminately and at low prices which, in some cases of Chinese imports, are even below the cost of raw materials that go in the making of a truck & bus tyre. This is causing huge injury to the domestic tyre manufacturers", said Dr Raghupati Singhania, chairman of ATMA.

Import of TBRs from China has gone up three times from 1.9 lakh tyres in 2013-14 to 5.5 lakh tyres in 2014-15 and China has come to account for 70 per cent of total TBR import by volumes in India. According to ATMA, huge surplus capacities in China are abetting dumping of tyres in India.

In a communication to Ministry of Commerce, ATMA has stated, "There is a concerted move to dump radial tyres in India so as to blunt India's edge in technologically superior radial tyre manufacturing. Indian tyre industry has invested Rs 20,000 crore in manufacturing state-of-the-art radial tyres in the last 3-4 years. However, a significant capacity is lying unutilised since demand is being met by imported radials, largely dumped into India from China.

Source:economictimes.indiatimes.com