Tyre exports from In?d?ia are expected to cr?o?ss Rs 12,000 crore for the first time this fiscal after having clocked a turnover of Rs 6,314 crore in the first half of the year.
Tyre exports have been gr?owing for the past three years. From Rs 8,824 crore in year 2015-16, tyre exports fr?om India went up to Rs 9,658 crore in 2016-17 and cr?ossed the 10K crore mark for the first time to stand at Rs 11,180 crore in 2017-18, industry body automotive tyre manufacturers association (ATMA) said.
“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 12,000 crore as order book position is healthy”, said Mr Anant Goenka, chairman ATMA.
Indian tyre industry has been able to increase its exp?o??rt competitiveness due to its increased emphasis on re??search & development. Fo?ur Indian tyre companies ra?nk amongst the top 20 in the world in terms of R&D sp?e?nd as a percent of sales as we?ll as in absolute R&D spe?nd. Currently about 2 per c?e?nt of the revenue is being inv??ested on R&D by tyre industry, which matches fairly with the global average.
“India has some of the finest radial tyre manufact?u?r?ing facilities. International ve?hicle majors (OEMs) have been rolling out vehicles on India-made tyres. All these have had a rub-off on tyre ex?ports too. Cost efficiency and customisation have also helped in making exports co?mpetitive”, said Goenka.
Indian manufactured ty?r?es are being exported to more than 100 countries in the world including the US and European countries. In fact US is the largest exp?o?rt destination for Indian manufactured tyres acco?u?n?t?ing for 13% of total export turnover. Germany is the se?c?ond largest with more than 7% share. The top 10 export destinations have several discerning countries including France, Italy and Brazil.
“India produces one of the largest varieties of tyres ma?nufactured anywhere in the world. In 2007-08,
tyre pr?oduction numbers stood at nearly 80 million units. The same has increased to nearly 180 million units in FY 2017-18”, added Goenka.
While private investme?nt growth has remained mu?t?ed in India in recent years, tyre industry stands out for the substantial investments made to support the autom?o?bile and economic growth. An investment of nearly Rs 51,000 crore (US$7 billion) has just been completed or is currently lined up in both Greenfield and Brownfield expansion by the industry.
The industry has potential to increase its export turnover immensely if a level playing field is granted matching other tyre manufacturing countries, ATMA said. High custom duty of 25 per cent on natural rubber, port restrictions on import of NR and pre import condition for NR import against tyre export obligation have been hurting the industry.