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 percent. GST coupled with anti-dumping duty, it has started to sink further," ATMA chairman Satish Sharma told reporters.
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 "boardrooms" the difficulties.
"There have been restrictive trade practices which actually spoilt the case even further. They restricted the imports (raw materials) to a few ports. You can bring in through JNPT only. So we expect these things can be taken care of," he said.
He said India signing free trade agreements would also give support to the industry. Stating that India was not producing radial tyres when the world was looking for radial tyres a decade ago, Sharma said, "now we are producing radial tyres, we are re-entering the world market and the world has taken note of this".
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