Saturday, November 15, 2014

Industry worried about surging tyre imports


The Indian auto component industry is growing at a CGPA of 8.9% with two-wheelers being the largest domestic customer segment for the Indian auto components industry. This has encouraged two-wheeler tyre manufacturers to constantly experiment with newer technology and innovative ideas to deliver the growing market.

According to Automotive Tyre Manufacturers’ Association, tyre import has come to account for an estimated 20% of the total domestic market. Chinese government continues to provide multiple, direct and indirect, subsidies to push exports. The export prices from China are lower than that of such tyres in Chinese domestic market and also prices of similar exports originating from Thailand, South Korea. This clearly indicates dumping of tyres into Indian markets and causing injury to the domestic tyre industry.

The rubber industry is highly fragmented; producers have been unable to manage a cut in rubber supplies to a level low enough to support prices. The ban has proved hard to enforce, with millions of farmers spread over and many living from hand to mouth, forcing them to sell the commodity to get urgently needed cash. Even middlemen/traders have been forced to sell to keep their businesses running.

For reading Rubber4U – 15th November 2014 issue: http://rubber4u.com/Public/Abcd.pdf
For 2014-15 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

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