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Domestic tyre industry has been facing challenges in capacity adjustments due fluctuating automobile demand and cheaper imports from China and Thailand. This chapter explains in details the factors responsible for capacity constraints and rising imports, as well as steps taken by the Government to support the domestic industry-

  • Subdued automobile demand hit the tyre manufacturers in FY13
  • Restriction on imports ensured better bargaining power with tyre manufacturers
  • Imports witness a marginal decline in FY13
  • Restriction on imports of TBR tyres curtailed the import value growth substantially in last fiscal
  • Curb on TBR imports have pulled down the import realization levels of Chinese tyres considerably 

Impact Analysis

  • Replacement demand to keep tyre rolling in near term

    Over the last one decade the automobile industry has gone through various structural changes that has driven automobile sales and in turn OEM demand f.....

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