Automotive Tyre Manufacturers’ Association (ATMA) has expressed concern over the continued slide in truck and bus radial tyre production in India.
From more than 550,000 truck and bus radials (TBR) in June last year, production had declined 20 % to 450,000 radials in December 2016 as the economy slowed and dumping of Chinese radials went up, ATMA says. TBR tyres has been the fastest growing segment in the tyre industry, accounting for two-thirds of the ₹35,000 crore investments made in recent years.
In a communication to the Union Commerce Ministry, ATMA said the contraction in tyre manufacture is a matter of grave concern and policy enablers need to be put in place for the growth of the Industry and to redeem the investments made.
“It’s a tough environment for tyre manufacturing in India. The industry has been squeezed from both the input and output sides. Indiscriminate surge in Chinese radials and slowdown in commercial vehicle sectors has been hurting tyre production in India. Over the last one year, the industry has hardly grown in size and the top line is under pressure,” said K.M. Mammen, Chairman, ATMA.