Indian Tyre Industry in for Formidable Growth

The Indian tyre industry, with an unprecedented Rs 400,000-million ($6 billion approx) investment in the last few years, is at the threshold of major leap forward. With the new Greenfield facilities set up in recent years, the most technologically advanced domestic industry can vie with the best in the world, says Rajiv Budhraja, the highly proficient Director General of Automotive Tyre Manufacturers Association (ATMA). India, with sheer diversity of road profiles and weather conditions, is a challenging country for tyre manufacturers. That even international OEMs prefer India-made tyres to roll out their vehicles in India is a better endorsement for quality of the Indian tyres which are being exported to over 100 countries, including the most discerning ones such as the US, he says. In an interview to Rubber Asia, Rajiv Budhraja, the authoritative spokesman of the Indian tyre industry, asserts that, if the Indian tyre manufacturing industry is to blossom, dumping of the Chinese tyres needs to be curbed forthwith. Inverted duty structure needs to be addressed and import of raw materials, be it NR or Synthetic Rubbers, needs to be allowed duty-free to the extent of domestic deficiency. The industry has presented these primary demands before the Government. According to him, India’s seasoned entrepreneurship, globally integrated industry, large skilled manpower, verdant NR plantations and a fast-growing economy are enough to give a big boost to the domestic tyre sector provided the bottlenecks are removed. EXCERPTS:

- Rajiv Budhraja

As Director General of ATMA, what is your assessment of the present state of the Indian tyre industry? What are the strengths and weaknesses?

These are the best of times and yet, in certain ways, the worst of times as well for the tyre industry in India. Currently, India is the toast of the world, a bright spot while the rest of the world is largely facing economic volatility. As a result, Foreign Direct Investment in the country is touching new highs. The world is talking about India opportunity in unison, being the fastest growing economy in the world. Many sectors of the economy in India are benefitting from this opportunity. And so is the Auto sector. In the case of tyre manufacturing also, India is the preferred destination. The investment to the tune of Rs 400,000 million ($6 billion approx) that the tyre industry has witnessed in the last few years is unprecedented. That could have been the springboard for a major ‘Make in India’ showpiece. However, indiscriminate dumping of tyres and raw material issues have put a spanner in the growth of the tyre sector in India.

How technologically advanced and globally competitive are India-made tyres?