New Delhi: Worried by massive 1300% jump in tyre imports from China in the last five years, Automotive Tyre Manufacturers Association (ATMA) today asked government to immediately impose an anti-dumping duty on import of radial truck and bus tyres.
“The truck and bus tyre import in the country has jumped by a massive 1300% during the last five years. According to data released by DGCIS&S, Government of India and corroborated by ATMA, the truck and bus tyre imports have gone up from 88,000 in 2003-04 to 12.17 lakh in 2007-08,” the association said in a statement.
ATMA said most of the import is in the nature of dumping of tyres.
“These tyres, imported mostly from China, are being sold at the retail level at a price almost 30% cheaper than the Indian tyres,” ATMA Director General Rajiv Budhraja said.
Certain independent importers and grey market operators using unfair means such as under invoicing the import and selling at the retail level on cash basis without paying VAT have flooded the market with these tyres, he added.
“The sale of these unaccounted-for imported tyres is costing the exchequer Rs 60-80 crore per month. The customer is also a loser as these tyres are being sold without any warranty,” Budhraja said.
The association said almost 85% of the truck and bus tyre import is taking place through China. From an insignificant percentage five years ago, the imported tyres have come to account for 14% of the 86.47 lakh replacement truck and bus segment in India.