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West Asia Tensions Threaten India's Tyre Exports
12 Mar
Summary
- West Asia tensions pose risks to India's tyre export market.
- Rising crude oil prices significantly increase tyre manufacturing costs.
- ATMA requests government support including RoDTEP rate reinstatement.
The Automotive Tyre Manufacturers Association (ATMA) has alerted the government to the potential severe impact of ongoing West Asian tensions on India's tyre sector and its supply chain. The escalating geopolitical situation poses a threat to annual tyre exports valued between $250-260 million to West Asian markets.
Disruptions to key maritime routes like the Strait of Hormuz and Suez Canal could also affect shipments to Europe, the US, and Africa, leading to increased transit times and freight costs. The industry is already grappling with volatile crude oil prices, as crude oil derivatives constitute 60-70 per cent of tyre production's raw material costs.
ATMA is seeking urgent government intervention, proposing measures such as reinstating earlier RoDTEP rates for tyres and addressing inverted duty structures for natural rubber. They also requested the government to facilitate natural rubber imports and classify the tyre industry as an 'Essential' sector for uninterrupted energy supply.
