KOCHI: Tyre exports from India have been witnessing robust growth in the last three years and are poised to cross Rs 12000 crore during the current fiscal, industry body Automotive Tyre manufacturers Association(Atma) has said.
The tyre exports from India stood at Rs 6314 crore for six months to Setpember ,2018, data from ministry of commerce showed.
From Rs 8824 crore in year 2015-16, tyre exports from India went up to Rs 9658 crore in 2016-17 and crossed the 10K crore mark for the first time to stand at Rs 11180 crore in 2017-18.
“During the current year also tyre exports have continued momentum of the previous two years. The industry is expected to end the current fiscal with an export turnover of Rs 12000 crore as order book position is healthy”, said Anant Goenka, Atma chairman.
Indian manufactured tyres are being exported to more than 100 countries in the world including the US and European countries. The US is the largest export destination for Indian manufactured tyres accounting for 13% of total export turnover. Germany is the second largest with more than 7% share.
The tyre industry has made substantial investments to support the automobile and economic growth. An investment of nearly Rs 51000 crore has just been completed or is currently lined up in both greenfield and brownfield expansion by the industry.
“India has some of the finest radial tyre manufacturing facilities. International vehicle majors (OEMs) have been rolling out vehicles on India-made tyres. All these have had a rub-off on tyre exports too. Cost efficiency and customization have also helped in making exports competitive”, added Goenka.
The industry has potential to increase its export turnover immensely if a level playing field is granted matching other tyre manufacturing countries. Atma pointed out the high import duty of natural rubber and the reduction in export obligation period against import to 6 months from 18 months as stumbling blocks to tyre exports.