India’s Carmakers look to China for Tyres

In a move that will no doubt further unsettle Indian manufacturers already concerned about tightening margins, one of the country’s major vehicle manufacturers has decided to fit its buses and multi-axle trucks with radial tyres sourced from China.

Tata Motors has placed an order for almost half a million truck and bus tyres, both radial and cross-ply, with Chinese suppliers. This OE order will be supplied over the next 12 months. The company has been considering the option of meeting its tyre requirements from China since last year. Replacement market prices indicate that Chinese tyres are about 10 per cent cheaper than their Indian counterparts.

Media sources in India indicate that other vehicle manufacturers are contemplating looking to China to fulfil their OE tyre needs.