Foreign tyremakers such as Bridgestone and Pirelli had sought licences from the government to allow them to import radial tyres.
An official from the director-general of foreign trade told Business Line, “Michelin has already been given the licence for two years to import one lakh tyres. Other companies like Bridgestone have also sent in their applications.”
In November, the government had placed the import of truck and bus radial tyres under the restricted list as the domestic industry feared cheap Chinese tyres being shipped into the country. The decision, however, has also put many of the foreign manufacturers at a disadvantage as they too import from their plants in China, Thailand, Turkey, Brazil, and Egypt among other destinations.
A senior official from the Japanese tyre company, Bridgestone, also confirmed that the company had applied for the licence and was waiting for the approval. “Globally, we are a significant player in the commercial vehicle category. India too it is an important market for us,” the official said.
When contacted, a company spokesperson for Michelin India said, “We are in no position to comment on the matter.”
The Automotive Tyre Manufacturers Association estimates that the replacement market of truck and bus tyres touched 72 lakh units during April-December 2008 of the total domestic production of 98.32 lakh units in the same period.
“Almost one in eight tyres in the replacement market is imported,” said Rajeev Buddhiraja, director general of the association.
Of this, exports constituted about 16 lakh units and demand from vehicle producers stood at about 14 lakh units. Industry officials said that the reason for many of the foreign companies queuing up for licences now is that their existing stock is depleting.
“Till December, there was sufficient inventory in the market because of which we were not affected.
“Now we have more or less exhausted our stocks,” said an official with a multinational company who declined to be quoted.
The official contended that while the decision had been taken to stop dumping from China on under invoiced products, it was also affecting other companies. (Tire Review/Akron)
