According to figures presented in the Indian business daily exports increased by 19.2% in the current financial year, with approximately 3.1 million units exported during the period. During the same months of the previous fiscal year total exports were in the vicinity of 2.6 million units.
“Exports in 2006-07 had shown a decline, as the demand in the domestic industry was healthy,” said Apollo Tyres COO and joint managing director Neeraj Kanwar. “With serving the domestic industry being a priority, exports seem to have slowed down. But now the industry has added capacity to increase its competitiveness, which would make the export growth come back to earlier levels. We expect exports to remain buoyant.”
However, according to the Hindu Business Line, JK Tyres president Arun Bajoria attributes the recent improved figures to surplus local market production. “During April-Sept 2007-08 there was a surplus situation since the original equipment manufacturers had cut down purchases of domestic truck tyres. Those tyres were exported which led to a sudden surge,” he said.
Tyre imports to India increased dramatically during the 2006-07 fiscal year, with a 98.09% rise recorded. The Automotive Tyre Manufacturers Association estimates that, of the total number of truck and bus tyres imported into India, 85% were sourced in China; 50% of passenger car tyres were imported from China and South Korea – figures that are a cause of concern for Indian manufacturers.
“Rising imports in every quarter has been a concern on the grounds of unreasonable pricing and unacceptable quality standards,” said Kanwar, referring to India’s tariff structure, which many in the industry view as inconsistent. (Tyres & Accessories/Staffordshire, U.K.)
