1st April 2009
Cheaper radial tyre imports affecting Indian tyre market
According to reports in the media South Korean and Chinese tyres that are sourced by a number of Indian automakers like Tata Motors, TVS Motor Co., Bajaj Auto, Mahindra and Mahindra, Ashok Leyland, Ford Motor India et al are giving domestic automobile component firms a serious run for its money. These products are dumped at a landed price of almost 15-30 less than the domestic companies.
Automotive Tyre Manufacturers Association is in the process of approaching the Director General of Safeguards to seek a safeguard duty on the import of passenger car radial tyres. It may be recalled that during November, 2008, following the recommendations of ATMA, the Government imposed a licensing policy on import of radial bus and truck tyres.
According to a senior representative of a leading tyremaking company, such a step would act as a fillip for the entire industry, as there were a lot of instances where spurious tyres were brought into the country without any investigation. Furthermore, duties were not levied on radial tyres, which were affecting its business, he added.
ATMA said most of the import is in the nature of dumping of tyres. These tyres, imported mostly from China and South Korea, are being sold at the retail level at a price almost 30 per cent cheaper than the Indian tyres, ATMA had said earlier. Radial tyres offer great economy and a huge reduction in operation cost, but the market is dominated by the cheaper nylon tyres.
SOURCE: Rupesh Janve for MyDigitalFC.com
