Originally implemented last October, the duty is intended to curb the large numbers of low-priced Chinese imports flooding into India.
At present, tyre imports from China are running at 68,000 units a month, a five-fold increase in the levels recorded three years ago.
The difference in price between Indian tyres and their Chinese equivalents is approximately 25% to 35%, despite the Chinese government’s removal of its 5% tyre export subsidy and increased freight charges for exports to India.
Such a gulf in prices means, according to MRF executive director of marketing Philip Eapen, that the increase in duty will make little difference apart from making Chinese imports a “little more unattractive.”