ATMA stated that this response was provided to the government's request for feedback on sectors where India can achieve self-reliance. The aim is to ensure that future FTAs are developed while protecting the interests of the domestic industry.
The industry body has highlighted that imports should not be liberalised through Free Trade Agreements (FTAs) by offering duty concessions.
India's domestic tyre industry is one of the largest in the world. It has an annual production that exceeds 200 million units. The production includes various categories such as two-wheelers, passenger vehicles, commercial vehicles, and off-road vehicles.
Despite having enough manufacturing capacity, more than INR 2,000 crore worth of tires were imported into the country during the first three quarters of FY24. This marked a 27% increase compared to the same period in the previous year, as reported by ATMA.
"Over the last few years, the tyre sector has witnessed substantial investments, by leading manufacturers allocating over INR 35,000 crore towards capacity expansion, technology upgrades, and research and development. As the new capacities go on stream, it is important to meet the demand from domestic manufacturing rather than importing tyres," ATMA Chairman Arnab Banerjee said.
He mentioned that the domestic tyre industry is currently equipped to fulfill the needs of both domestic and international auto OEMs (original equipment makers) through design, development, and ensuring a consistent supply of tyres for all types of vehicles produced in the country.
"The industry is ahead of the demand curve in production of all types of tyres. Tyre companies are prepared with the fitments as soon as a vehicle is designed. This has led to auto OEMs not importing tyres, and the domestic tyre industry is fulfilling the demands.
ATMA stated that the domestic tyre industry plays a crucial role as an employer, offering livelihoods to more than 500,000 individuals who are directly and indirectly engaged in manufacturing, distribution, and associated services.
"Prioritising domestic manufacturing of tyres is also essential as the livelihood of over 10 lakh rubber growers in the country depends upon the tyre industry that consumes over 70% of the domestic natural rubber," it said.
India can strengthen its position as a global leader in the tyre industry by fostering domestic production and leveraging technological advancements. This will not only generate employment, promote sustainability, and drive economic growth, as asserted by ATMA.
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