By Denna Bowman
Indian tyres exports fell by a dramatic 22 per cent in July, according to year-on-year statistics.
Even though there has been a revival in domestic tyres sales, the export market is suffering the effects of the global recession with sales dipping to 446,418 units against 571,479 units registered in the same period last year.
In the first quarter of 2009-10, exports were down 22 per cent to 1,558,393 units (2,042,428 units), according to the Automotive Tyre Manufacturers Association (ATMA).
The main reasons attributed to the decline were the imposition of safeguard duty by various countries and the slump in demand in various West Asian and South East Asian markets, where a number of Indian tyremaking firms exports its products as well as the tough competition with Chinese products.
In addition, worldwide auto slump and other geo-political factors are also believed to have affected the bottom lines of domestic tyre companies.
Dr Raghupati Singhania, Chairman, ATMA, said the decline was due to intense competition from China in the overseas markets in recent years. “Besides, the ongoing global slowdown in the automobile sector has impacted exports,” he added.
The cumulative tyre production in July went up by 6 per cent at 7,768,632 units vis-à-vis 7,343,858 units in the same month last year, with truck and bus tyre’s output jumping by 6 per cent to 1,290,274 units, while LCV tyre production going up by 3 per cent at 508,979 units.
However, passenger car and jeep tyre production was down 3 per cent and 13 per cent at 1,480,605 units and 108,886 units respectively.
While the exports of passenger car tyres declined by 29 per cent to 74,257 units vis-à-vis 105,233 units last year, light Commercial Vehicle tyres (LCVs) declined by 28 per cent to 120,046 units as against 166,810 units in the corresponding period last year.
However, truck and bus tyre exports went up fractionally to 197,137 units (191,594) while that of jeep tyre surged by 12 per cent to 686 units, from 610 units in the same period last year.