Empowering MSMEs with News & Insights

Indian Tyre Exports Rebound Sharply In Second Half Of Fiscal Year

Updated: Jun 12, 2024 04:13:34pm

Indian Tyre Exports Rebound Sharply In Second Half Of Fiscal Year

New Delhi, Jun 12 (KNN) The Indian tyre industry witnessed a robust recovery in export performance during the latter half of the 2023-24 fiscal year, according to data released today by the Automotive Tyre Manufacturers' Association (ATMA).

Total tyre exports for the 12-month period ending March 31st stood at Rs 23,073 crore, matching the previous fiscal year's figure.

However, exports faced significant headwinds in the first six months due to weakening demand in advanced economies, geopolitical tensions, and elevated inflationary pressures across global markets.

"The sharp rebound in tyre exports during the second half, increasing 12 per cent year-over-year, underscores the resilience of India's tyre manufacturing sector amid challenging conditions," stated Arnab Banerjee, Chairman, ATMA.

He cited the quality and value proposition of Indian tyres as key drivers fuelling robust overseas demand.

With an annual turnover of approximately Rs 90,000 crore and exports exceeding Rs 23,000 crore, the Indian tyre industry maintains one of the highest export-to-turnover ratios across domestic manufacturing sectors.

Indian tyres are currently exported to over 170 countries worldwide, including major markets like the United States and European Union.

Looking ahead, ATMA emphasised that reviving global economic growth presents a significant opportunity for further export expansion.

However, the association called for the removal of certain regulatory hurdles, particularly surrounding the importation of natural rubber - a key raw material facing domestic supply shortages.

Specifically, ATMA urged restoring the export obligation period for natural rubber imports against tyre exports back to 18 months from the current 6-month window.

The association argues the shorter timeframe constrains operations and hampers export competitiveness for tyre manufacturers highly dependent on imported rubber.

(KNN Bureau)


    Be first to give your comments.


Required fields are marked *