The agency government on Friday restricted the import of some new pneumatic tires for cars, buses, trucks and motorcycles.

NEW DELHI: The Automotive Tyre Manufacturers Association (ATMA) on Wednesday said restricting imports of tires would pave the way for improved domestic production and boost exports besides ensuring employment opportunities. “Reckless import of tires is harmful to Indian tires.” Most of the imports, which are seen as an “industry nuisance”, come from China and account for more than 40 percent of truck and bus tires (TBRs) and passenger car tires (PCRs) exported to India from abroad.

In the case of tractor tires, China accounts for three-fourths of the total imports.

On Friday, China imposed import restrictions on some new pneumatic tires for cars, buses, trucks and motorcycles in a bid to boost domestic manufacturing.

“The move boosted the slowdown in the automotive sector and COVID-19 As a result of these developments, the Indian tire industry has seen better-than-expected domestic output and production. Increased exports.

He further said, “Domestic manufacturing capacity is ahead of the demand curve and India is self-sufficient in almost all types of tires, including those for critical applications such as fighter jets. Most of the imports are not justified and are not conducive to utilization of domestic manufacturing capacity.” This will have an impact,” he said.

Citing data from the Directorate General of Business Intelligence and Statistics (DGCIS), ATMA said India imported $429 worth of tires in FY2019 worth $100 million.

ATMA said, “Even before 202011 when India’s economy slowed down and demand declined, tires worth $385 1 million arrived in India at a reduced rate.” OEMM 2019-20 field demand declined, the economy and consumer confidence declined, and sales grew 8% to 177.7 million units in the fiscal year.

Passenger car tires are the backbone of the Indian tire industry, accounting for more than 50% of the sector’s sales. Production fell sharply by 14%.

Mammen also said that restricting tire imports will benefit the entire value chain, and that domestic demand for natural rubber (NR) will increase as domestic tire production declines.

Production in the tire industry is expected to decline further as the economy is expected to contract this year,” he said. However, even in a difficult year, import regulations will leave room for increased domestic tire production.”