Indian tiremakers want the country to change its upside-down duty system that places a higher duty cost on raw materials – like natural rubber – than it does on finished products – like tires.

The producers have asked the Indian government to cut the duty on NR from 20% to 7.5%, a move they claim is necessary to eliminate tire dumping from manufacturers in China and other countries.

In a published statement, India’s Automotive Tyre Manufacturers Association (ATMA) claim finished tires currently have a duty of 10%, down from 12.5% last year.

"It’s time to correct one of the last remaining inverted duty structures in our economy," Onkar Kanwar, chairman of Apollo Tyres Ltd. India’s largest tiremaker. "It is cheaper to import a finished product into India, than manufacturing it here, putting domestic industry at a significant disadvantage.”

ATMA also wants duty cuts for butyl rubber, polyester tire cord, styrene butadiene rubber and bromo butyl. (Tire Review/Akron)