Tyre manufacturers in India have made major investments in greenfield and brownfield projects for manufacturing radial tyres, ATMA Chairman K.M. Mammen has been quoted as saying.
However, indiscriminate imports and dumping of cheap tyres from China are queering the pitch for the domestic tyre manufacturers, he added.
The domestic tyre industrys' petition, seeking imposition of anti-dumping duty on cheap imports from China is pending with the Commerce Ministry.
According to ATMA, TBR (Truck & Bus Radial) tyre imports have surged from 7.8 lakh units in FY15 to 12.8 lakh units in FY16, registering an increase of 64 per cent.
In the last two years, TBR tyre imports are up by 2.5 times.
From an average per month import of about 40,000 units in FY14 and 65,000 units in FY15, tyre imports crossed the one lakh units per month mark in FY16.
Most of these imports are from China, as TBR export prices there are significantly lower than the prices of such tyres in the Chinese market and prices of similar exports from Thailand and South Korea.
The per unit import price from China in many cases is less than the cost of raw materials in India, according to ATMA.