Tyre Exports From India Dip by a Quarter

Despite recovering domestic market sales, export markets gave India’s tyre manufacturers little cause for joy in the first two months of the country’s current financial year. During April and May sales in this higher margin market segment were down a whole 25.3 per cent.

India’s Automotive Tyre Manufacturers Association (ATMA) reports that exports reduced from 985,273 units in April-May 2008 to 736,070 units a year later. Commercial vehicle tyre exports dropped some 10.4 per cent to 282,247 units. Passenger car tyre sales slipped from 155,934 units in the two-month period last year to 125,542 units, a reduction of 19.5 per cent, while light commercial vehicle tyre exports plummeted 34.9 per cent to 201,478 units.

“The impact of continuous fall in export volumes is significant, as exports have traditionally accounted for approximately 15 per cent of the total turnover of the tyre industry,” said ATMA director-general Rajiv Budhraja, Director-General. “India’s export markets are yet to fully recover from the downturn in the last one year. More important, India’s competitors in export markets, particularly China, are aggressively tapping export markets, aided by export incentives provided by these countries.”