Exports from India Growing Steadily

The value of tyre exports from India has grown at an average of 11 per cent per annum during the last decade, according to India’s Automotive Tyre Manufacturers’ Association. The current value of exports of all category of tyre is Rs 26 billion (£315.5 million). During the 1996/97 financial year total exports only amounted to Rs 8.32 billion (£101 million).

Since the start of this current decade the strongest export growth has been in the passenger car sector, with exports increasing more than tenfold to 966,046 units in 2006/07. While this amount is still dwarfed by exports of truck tyres (2,276,049 units) and tyres for light commercial vehicles (1,599,230), the high level of passenger car tyre radialisation achieved by tyremakers has provided them with a product that can potentially gain acceptance in many more overseas markets.

“Currently India exports tyres to around 65 countries and this is expected to increase significantly during the current financial year. Though the growth has been lower than when compared with 2004-05 and 2005-06, when the overall growth was around 7 per cent, there is nothing to worry about as a couple of companies are in expansion mode and also they are catering to the increasing domestic needs,” an industry source commented to Indian business daily The Hindu Business Line.

Other industry sources report that international acceptance for Indian products has increased in the last few years, a reputation many believe can only further benefit from the recent controversy surrounding products exported from arch rival China.