NEW DELHI: Indian manufacturers hit by cheap Chinese imports have asked the government to raise the tariff on tire imports to 20 percent, on par with natural rubber, to level the playing field for the domestic industry.

The Automotive Tire Manufacturers Association (ATMA), according to the pre-budget report, under various trade agreements, tires can be imported at 5% or even zero tariff, as is the case with inferior natural rubber. 20%.

“For the success of the ‘Make in India’ campaign and promotion of domestic manufacturing, imports of finished products should be subjected to at least the same duty as taxes. The ATMA Raghupatiapatiitipatipa Singhania said:

He added that while tires can be imported into India at preferential tariffs under various trade agreements, there is no corresponding preferential tariff for natural rubber as it is on the negative list of most trade agreements.

Tires are probably the only finished product where the “tariff inversion” has not only persisted but actually intensified in recent years. ATMA says it must be addressed and corrected as a matter of priority.

Accordingly, ATMA is calling for an increase in tire tariffs from the current base rate of 10% to 20%, and for the inclusion of import tariffs on the negative list of all trade agreements involving natural rubber. ‘

The domestic tire industry has recently invested more than Rs 2,600 crore to expand its production capacity, he said, adding that despite adequate domestic production capacity, tire imports are increasing significantly due to lower import tariffs.

“. More than 60% of imported TBR (Truck Radial Tire) comes from China at an average unit price of $106, which is lower than the price of raw materials, causing great damage to domestic tire manufacturers.ATMA also produces butyl rubber and EPDM (Ethylene-Propylene-Dimethyl-Dipropylene Rubber) the only source.