Study on export of tyres to be ready soon: Association

Chennai, June 15 (IANS) A study on making Indian manufacturers to export tyres to the global market in large numbers, commissioned by the Automotive Tyre Manufacturers Association (ATMA), is expected to be ready in a couple of months, said an official of the association.

The official also expects the government to announce its decision on anti-dumping case against Chinese tyres soon.

He said the central government can have the Indian tyre industry as the poster boy for its Make in India programme with four big global tyre makers setting up plants in the country.

"We have commissioned Thought Arbitrage Research Institute to study and recommend measures on making tyre exports out of India on a large scale. The government can help the industry in making tyre exports out of India in a big way," Satish Sharma, Chairman, ATMA, told reporters here on Thursday.

According to him, the industry earns nearly 15 per cent of its annual turnover of around Rs 50,000 crore from exports.

Sharma said the export of cars out of India by several foreign car makers had enabled Indian tyre companies to establish their brand equity overseas.

"Earlier foreign car companies used to fit foreign tyres for export markets. But now the trend has changed. Yes, we are riding on the brand equity of foreign car makers."

Sharma said newer players were setting up plants in India while the existing ones were on expansion mode. "Most Indian tyre companies are self-sufficient in radial tyre technology."

According to him, the Goods and Services Tax (GST) regime was expected to bring in the Chinese tyre importers into the organised sector. The price advantage enjoyed by the imported Chinese tyres will not be there post GST, Sharma said.

Vehicle makers have stopped importing tyres.

Sharma said the macro conditions - increase in demand and falling inflation, forecast of normal monsoon and government investment in road building - augured well for the industry.

Demonetisation had wiped out Chinese imports and spurred the sales for domestic tyre companies, he said.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)