ATMA Director General: 5-6% Rise in India Tyre Consumption

With India’s auto sales back on the rise in September year-on-year comparisons, Rajiv Budhraja, director general of the Automotive Tyre Manufacturers Association, told the Press Trust of India that tyre consumption will follow “by five to six per cent in the next six to eight months”. The increase in auto sales has risen by 17.1 per cent overall in September 2009 compared with the month in 2008, while the rise was particularly felt in the passenger car segment, where that increase topped 20 per cent (Society of Indian Automobile Manufacturers figures).

Budhraja also launched a warning to the country’s government, which he says is allowing tyres to be imported with a lower level of duty (10 per cent) than for raw materials (20 per cent).

“With rubber growers resorting to exports, the government should allow for duty-free import of rubber,” Budhraja said. Ceat’s managing director, Paras Chowdhary supported Budhraja’s assertions: “With the automobile industry once again perking up, tyre consumption is expected to increase. It could rise by up to 5-6 per cent by end this fiscal.”