In a communication to Ministry of Commerce & Industry, ATMA has asked for early imposition of anti dumping duty on import of Truck & Bus radial tyres from China.
Imports of Truck & Bus radial tyres (TBR) touched a new high of 1.2 lakh units per month in FY17 showing 9% growth over the previous year, latest statistics has revealed. Imported tyres have come to account for 40% of the replacement demand for truck & bus radials in India causing a severe blow to the domestic industry which has put in hefty investments in TBR manufacturing.
Truck & Bus radial import in India has been spiralling upwards in the last few years. From 40000 units a month in FY14 to about 1.2 lakh units per month in FY17, TBR import has witnessed a staggering 200% increase in the last three years. Most of the new investments of Rs 35000 crore by tyre industry in India in the last 3-4 years has been directed towards setting up TBR capacities. “TBR has emerged as the growth driver for the industry. Unfortunately, indiscriminate import has queered the pitch for domestic tyre sector. With expansion in capacity for TBR, the capacity utilization levels have come down to 60-65% from 80-85% three years ago.
As much as 60% of the TBR import is being contracted by small private operators and traders who indulge in unfair practices such as underinvoicing and sell the tyres in cash thus depriving the exchequer of its revenue. Demonetisation sucked away the unacccounted cash from the system leading to a significant drop in import of tyres. However with remonetisation, the imports have made a serious come back.
More than 90% of TBR import is taking place from China. China’s share in the import pie has risen from 40% in FY14 to 92% in FY17.