A Study on the Radial Tyre Dumping by China and its Impact on Indian Tyre Industry

The world rubber industry had its beginning in the year 1887, with the process of tuber vulcanization by Charles Good Year. Indian tyre industry is about 60 years old. The tyre industry was and continues to be in the core industry sector. Tyres are covered under the Essential Commodities Act. Its predominance of the foreign multinational prevailed in 1960's has been considerably reduced. The tyre industry is a raw material intensive industry. Raw materials account for about 55% of total production cost.The large two wheeler tyre units are MRF, CEAT, Bombay Tyre International, Dunlop, Birla, continental, TCI tyres, Metro tyres, TVS Sri Chakra, Falcon etc.

A slowdown in economic growth and the dumping of Chinese tyres have badly hit the Indian tyre manufacturers who have invested about Rs 35,000 crore in the past five years or so. The truck and bus radial (TBR) segment, in particular, is feeling the pressure, with the production of TBRs declining from 5.5 lakh units in June to 4.5 lakh in December 2016, according to the Automotive Tyre Manufacturers' Association (ATMA), the representative body of 11 large tyre companies accounting for over 90 per cent of tyre production in India.

The main objective of the study is to understand the various factors which are related to production of radial tyres and the import of radial tyres. The study conducted on the basis of secondary source of information. Review of literature and theoretical overview focused on the analysis of many factors which are responsible for the decline in production of radial tyres in India and increased import from China. Analysis of the information involves the detailed observation of the growth trend in industry and also the threats from dumping and the Government initiatives to protect the Indian companies.

The Indian TBR tyre market is growing and it leads to growth of replacement tyre market.The study helped in many ways to learn about the tyre industry and its operation in various ways. However there is severe competition and survival is for the fittest and the best. From this article, we came to know the various problems the tyre industry especially the radial tyre segment is facing and the probable solutions to solve the issues.