The Automotive Tyre Manufacturers Association (ATMA) has commissioned a study on the feasibility of Indian manufacturers to export large amounts of tyres to the global market. It is also expected that the government will soon announce its decision on the anti-dumping case against China-made tyres.
According to officials, the central governments can use the Indian tyre industry as the poster boy for the Make in India programme particularly since four of the biggest global tyre makers are putting plants in the country. Arbitrage Research Institute was commissioned to study and made recommendations whether Indian tyre manufacturers can export tyres on a large scale.
According to ATMA chairman Satish Sharma, the government can help in a big way to realize large scale tyre exports to the global market. He told reporters that the automotive tyre industry earns nearly 15% of its annual turnover of about Rs50,000 crore from exports. Several foreign car manufacturers have exported their cars out of India to enable Indian tyre manufacturers to establish brand equity overseas.
Previously, foreign car makers fitted cars for the export market with imported foreign tyres. However, this trend has changed and India is now riding on the brand equity of foreign car manufacturers. Sharma further said that there are new players that are setting up plants in India. The existing plants are now in the process of expansion. Majority of the Indian tyre manufacturers are self sufficient when it concerns radial tyre technology.
Sharma also mentioned that the Goods and Services Tax (GST) is expected to attract the attention of Chinese tyre importers into the organized sector. The price advantage that is being enjoyed by imported China-made tyres will no longer be there post-GST. Demonetization has wiped out the imported Chinese tyres and spurred the sales of tyres that were domestically manufactured.
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