ANTI-DUMPING DUTY ON CHINESE TYRE IMPORTS POSITIVE: ICRA

Time: Sep 24th 2017   Copy editor: Tyrefull

Credit rating agency ICRA has said that anti-dumping duty on Chinese tyre imports into India is a positive step for the industry. The government of India on September 19, 2017 re-imposed Anti-dumping duty (ADD) on import of new Chinese Truck and Bus radial (TBR, including tubeless), for five years effective from September 18, 2017. ICRA expects this will lead to a strong demand pickup for large Indian truck tyre manufacturers.

“With sizeable investments made in recent years towards creation of TBR capacities on the back of healthy long term domestic demand potential for radial tyres, rising imports had an adverse impact on industry capacity utilisation levels. With imported Chinese TBRs priced lower than domestic Truck and Bus bias (TBB) tyres, these imports made heavy inroads into the Indian T&B replacement market, eroding TBR volumes for Indian players. With the re-imposition of ADD by India and the USA ruling out ADD on Chinese tyres in February 2017, Chinese imports will become costlier, levelling the playing field for Indian T&B tyre manufacturers. We expect this will positively benefit large Indian truck tyre manufacturers.” Says Mr. Subrata Ray, Senior Group Vice President, ICRA,

Tyre imports, which represent around seven per cent of the domestic tyre industry (in value terms), has witnessed a 10 per cent growth in the last three years (CAGR ending FY2017) as against the industry’s revenue growth of two per cent. Specifically, influx of TBR tyres was high during this period, with TBRs accounting for 43 per cent of total tyre imports (in values) in FY2017. TBR imports surged from INR 7.1 billion in FY2013 to INR 14.2 billion in FY2017 and accounts for a major share of TBR consumption in India. Country-wise, China cornered a lion share, with 89 per cent of TBR tyres originating from China in FY2017, ICRA said in a statement.

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