Chinese tyres bulldoze desi market

As per industry insiders, the price advantage offered by Chinese tyre manufacturers has become a cause for heartache for local manufacturers. Perspectives on this issue were shared at the fifth edition of Tyrexpo India, a dedicated trade show for the tyre industry, comprising professionals from OEM, equipment  and tools manufacturing, distributing, wholesaling, retreading and fleet operation sectors. 

Satish Sharma, Chairman, Automotive Tyre Manufacturers Association (ATMA), says, “The tyre industry of India has the potential to emerge as major exporter globally. We want to engage with the government and realise this potential through policy making. 

However, there is an injury to the Indian tyre industry largely through the Chinese import of truck and bus radial (TBR) tyres. A case has been filed and the government is examining it currently. The question, with respect to truck and bus radials is why is 92 per cent of the imports coming only from one country i.e. China. We found there’s a huge evasion of tax by the retail players. We believe such developments in this product category are harming the Indian manufacturing sector.” 

Baldeep Singh Pahwa, India Head, SingEx Exhibitions India, which facilitated this event, shares with us, “Chinese tyres these days are coming with BIS certifications. Anti-dumping duties have also been imposed on these players. 

However, the domestic players are coming up quite strongly. Adding value is the key here and it’s no longer just a commodity business. Even the pricing might not matter anymore. At the end of the day, the consumer is king and quality will be the driver going forth.” 

Sharma adds, “Tyre technology the world over is dictated by the OEMs. Our country has a good OEM infrastructure. The best global companies produce in our country, be it trucks, cars or two-wheelers. The recent move from BS-3 to BS-4, going to BS-6 by 2020 and the electrification of the power train by 2030 are regulations which will have be a move towards being on par with the rest of the world.”