01 March 2010;timesofindia.indiatimes.com:CHENNAI: The Union government’s notification on February 19 imposing anti-dumping duty of $35-$40 on radial truck and bus tyres from China and Thailand, and restrictions on import, has the industry divided. Ashok Leyland and Tata Motors, who are facing the heat, alleged that the tyre manufacturers were diverting their supplies to the replacement or retail market, where they are able to make better margins. Tata Motors has indicated that shortage of radial tyres has forced them to cut down production between 5% and 10%. Officials at Ashok Leyland hinted that their production could be down by 10-15%. The tyre replacement market in the commercial vehicle segment in India constitutes about 90% of the tyre supplies. On November 24, 2008, the ministry of commerce imposed quantitative restrictions on import of Chinese and Thai radials. Till November 2008, India was importing about 1.3 lakh tyres per month but following the restrictions, import has fallen to 10,000 tyres per month, according to S P Singh, convenor, All India Tyre Dealers’ Federation (AITDF). The demand is about 40 lakh radial tyres per annum. “The market requirement for radial tyres has grown to about 4-5 lakh tyres per month in the replacement market, the production in India is just around 50,000 per month.”
Petrolstop is a division of Car Fuel Info Solutions, LLC Petrolstop.com is a registered trademark owned by Car Fuel info Solutions, LLC Website Design by Onazari Technical Solutions
