Tyre production in India witnessed a 20% decline – ATMA
Tyre production in India has come down sharply, says the Automotive Tyre Manufacturers Association (ATMA).
According to the data that ATMA shared with Express, the production of truck and bus radial tyres dropped by 20 per cent from 5.5 lakh in June 2016 to 4.5 lakh in December as economy slowed and dumping of Chinese radials rose.
Truck and bus radial has been the fastest growing segment of the tyre industry, accounting for two-thirds of the Rs 35,000-crore investments made in recent years.With new capacities going on stream and declining production, the industry is staring at the grim prospects of gross under utilisation of TBR capacities. Truck and bus tyres account for 55 per cent of tyre industry’s revenues in India.
“The industry has been squeezed from both input and output sides.
Indiscriminate surge in Chinese radials and slowdown in commercial vehicle sectors has been hurting the tyre production in India. Over the past year, the industry has hardly grown in size,” said K M Mammen, chairman, ATMA. In view of excess capacities and surge in Chinese tyre imports, the industry is not in a position to pass on the increased cost of production impacting competitiveness of the industry, he added.