anilsoharu's Blog

China rotating out Indian tyre exports
Date: Nov 2nd, 2009 5:34:22 am - Subscribe
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Tyres exporters India this year are heading towards negative territory largely due to the increasing competition from Chinese manufacturers in the traditional markets of Indian tyre makers. Tyre exports, which clocked a total turnover of Rs 3,000 crore last fiscal, are set to fall by 10-12 per cent.
“What is happening is the traditional export markets for Indian companies have been overcrowded by Chinese tyres. The international market is becoming increasingly challenging for Indian tyre companies,” he told Business Line.
Late last month, the US imposed a 35 per cent tariff on Chinese tyres to protect the American tyre industry. With the US markets (China’s third largest export destination) turning unfavorable, Chinese manufacturers would be more aggressive targeting other markets.
Well before the US’ impost, Chinese tyre exporters unleashed a price offensive against Indian companies in their traditional markets such as West Asia, Latin America and South-East Asia, according to industry representatives. As a result, from April to July, India exported 15.88 lakh tyres against 20.42 lakh previously, a decline of 22 per cent.
Another reason attributed to the fall is the slowdown in the global automotive industry.
Since the industry is going through a downturn, the size of the pie for tyre makers remains the same or is shrinking.


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