Automotive Tyre Manufacturers’ Association (ATMA) has stated that automotive tyres rank at the forefront of those sectors where domestic manufacturing capabilities can render imports unnecessary.
The Government recently asked industry to name items where India has capabilities to be self-reliant so that upcoming FTAs could be drafted while safeguarding the interests of domestic industry.
ATMA in a communication to the government said the country’s domestic tyre industry is among the largest in the world, with an annual production exceeding 200 million units across various categories including two-wheelers, passenger vehicles, commercial vehicles, and off-road vehicles.
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Notwithstanding adequate manufacturing capacities, over ₹2000 crore worth of tyres were imported in the country in the first three quarters of FY24, an increase of 27 per cent over the same period in the previous year.
“Over the last few years, the tyre sector has witnessed substantial investments, by leading manufacturers allocating over Rs35000 crore towards capacity expansion, technology upgrades, and research and development. As the new capacities go on stream, it is important to meet the demand from domestic manufacturing rather than importing tyres”, said Arnab Banerjee, Chairman ATMA.
The domestic tyre industry is a significant employer, providing livelihoods to over 500,000 people directly and indirectly employed in manufacturing, distribution, and related services. Prioritising domestic manufacturing of tyres is also essential as the livelihood of over 10 lakh rubber growers in the country depends upon the tyre Industry that consumes over 70 per cent of the domestic NR.
The landscape in Indian tyre industry is undergoing transformation with concepts such as Artificial Intelligence (AI) and Digitisation leading to large scale changes in the way the industry operates.
The Indian tyre industry is fast converging with the world on several counts. The spend on R&D by major tyre companies in India has gone up from 0.5-0.6 per cent of revenue till a few years ago to about 1.5 per cent currently.