Import of Chinese tyres has started to decline, says ATMA

Import of Chinese tyres has started to decline, says ATMA

 The note ban in 2016, introduction of Goods and Services Tax (GST) and anti-dumping structure have resulted in a decline in import of Chinese tyres, the chairman of Automotive Tyre Manufacturers Association said.

"Now you can say the Chinese imports have become less than half. During the demonetisation month (November 2016), it dropped by 20%. GST coupled with anti-dumping duty, it has started to sink further," ATMA chairman Satish Sharma told reporters here  on Saturday.

Noting that import of Chinese tyres has started to 'decline', he said, "the imports of Chinese tyres stood at 1,50,000 units in May 2016. Today, it is 50,000 units and still going down." Tyre dealers have become "confident" of not purchasing Chinese tyres as their "profitability" has also crashed, he said.

To a query on the growth of the tyre industry, he said it was pegged at "high single" digit during the current financial year and would be "high double digit" in FY18-19.

"My guess is that the industry this year would see a high single digit (growth) and then it should be in the double digit (as turnover)," he said. Referring to the recent interaction of ATMA's top office-bearers with Commerce Minister Suresh Prabhu, he said the minister assured to take care of which can be done and also asked them to discuss again in "board rooms" the difficulties.