Apollo Seeks Extension on Anti-Dumping Duty to Radials

Apollo Tyres is said be calling upon the Indian government to impose anti-dumping duty upon cheap imported Chinese radials, as these products are hurting consumers. The Press Trust of India news agency has reported Apollo vice-chairman and joint managing director Neeraj Kanwar as saying “what China is doing is coming and dumping huge quantities of tyres because they have capacities lying idle, because they are not being able to export properly to America.

Referring to past safety issues linked to some Chinese tyres, Kanwar added: “Import of (Chinese) tyres is being done by small players sitting around and there is no company backing to these products. What is happening is that the consumer is getting hurt.

“Chinese imports account for 14 per cent of the estimated eight lakh (800,000) units sold annually in the country,” said Kanwar, adding that Chinese radials enjoy a cost advantage, and can be sold even cheaper than cross-ply tyres, or indeed even cheaper than the Indian raw material costs.

Kanwar said Indian tyre industry body the ATMA had taken up the issue of cross-ply tyres with the government, following which anti-dumping duties were imposed on the product. “We are taking up the issue on radial tyres also but the government is saying that the industry does not has the capacity to make radial tyres,” Mr Kanwar said.

“The government is also losing revenue on account of customs duty because these tyres are often sold without invoice. It is in the interest of all manufacturers in the country, especially the big ones, that the Chinese imports are stopped,” he elaborated.

Company director Sunam Sarkar said a lower excise duty for radial tyres than cross-ply ones would be beneficial. “The excise duty is the simplest solution, because today the excise duty on any type of tyre is 16 per cent.”