NEW DELHI: Ahead of the budget, domestic tire makers have demanded anti-dumping duties and higher tariffs on cheap Chinese bus and truck spokes, saying existing investments in the sector are under serious threat.

To reduce imports from China, the domestic industry wants tire products, especially those made by Chinese companies, to strictly adhere to the Bureau of Indian Standards (BIS) logo.

Automotive Tire Manufacturers Association (ATMS) “While India seeks new investments, existing and ongoing investments are under serious threat of tire dumping,” he said in a report .

The paper, titled “Should India’s Bus Tire Manufacturing Industry Import from China? states that there is a need for measures such as anti-dumping duty and 30% increase in tariff on tires to protect the domestic industry.

The current total investment in Indian tire manufacturing by domestic and multinational companies and recently completed is Rs. 360 billion.

Raghupati Singhania, Chairman, ATMS “Unfortunately, the present government is preoccupied with creating and dealing with issues that are detrimental to the tire industry,” he said while commenting on the issue. Cheap imports from China and dumping attacks have made survival impossible.

The newspaper said, “First and foremost, we must impose anti-dumping duty on Chinese truck tires and strictly comply with BIS requirements.”

The report also added that Free Trade Agreements (FTAs) should be reviewed to ensure equal treatment of tires and natural rubber.

“As a corrective measure, tire loading should start at 10% In order to correct reverse loading between tires and natural rubber, increase to 30%.

Currently, India offers a ready and growing market with very low import tariffs on tires. Compared to the standard import tariff of 10%, the import tariffs on tires are much lower under various trade agreements.

At the same time, the Chinese government continues to provide various direct and indirect subsidies to promote exports. As a result, China’s import prices remain much lower compared to other countries.

In addition, the newspaper reports that dumping of tires into India is accelerating due to severe overcapacity in China.