Chinese CV Tyre Imports Continue Unabated in India

The Indian government’s July 2007 anti-dumping legislation is having little effect on the numbers of Chinese truck and bus tyres being brought into the subcontinent. Instead increased numbers of Chinese-produced radials are being imported into India. According to a Hindu Business Line report, there has been no reduction in the share of Chinese tyres in this part of the domestic replacement market; and the price differential between Indian products remains in the range of 10-30 per cent. Imports of commercial vehicles tyres have reportedly skyrocketed in the last five years, with the Chinese tyres making up 91 per cent of the overall tyres tyre imports, according to ATMA figures tracking the market between September 2007 and March 2008.

ATMA estimates that the share of the market occupied by Chinese produced has surged from 0.3 per cent in 2002/03 to 14 per cent in the year ended 31 March 2008. “Since the anti-dumping ruling was on bias truck and bus tyres, there is now a shift in imports to radial tyres. However, even the radial tyres which are being brought into the country are available at a much lesser price, resulting in growing imports,” Hindu Business Line quoted Satish Sharma, Chief India Operations, Apollo Tyres, as saying.

“The rising import of commercial vehicle tyres clearly demonstrates that the anti-dumping duty has been ineffective. Despite the ruling, which increased the anti-dumping duty to $135 from $75, price differences in the domestic and Chinese replacement market is in the range of 10-30 per cent,” said Rajeev Buddhiraja, Director General, ATMA. Considering the present context of increased raw material prices, anti-dumping duty must be benchmarked to $160 to $170, he said.