Tyre exports rebound with 10% growth to cross ₹14 crore in FY21 – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/economy/tyre-exports-rebound-with-10-growth-to-cross-14-crore-in-fy21/article35212226.ece?homepage=true

Industry credits govt’s sector-specific support for tiding over a tough pandemic year

In one of the most robust export performances in the auto space, tyre exports from India rose 10 per cent in value terms in FY21 to touch ₹14,097 crore, the latest data released by the Ministry of Commerce says. In volume terms, at 3.64 crore units, tyre exports grew 8 per cent.

The strong export performance came on the back of disrupted international trade due to the Covid pandemic and a sharp contraction of 23 per cent in tyre exports in Q1 of FY21. “The spectacular rise in exports of tyres during a challenging year bears testimony to the resilience of the industry to bounce back despite a tough environment,” said Anshuman Singhania, Chairman, Automotive Tyre Manufacturers Association (ATMA).

Export opportunity in Europe continues to be strong for Indian tyre-makers despite Covid-19: CEAT MD Anant Goenka

Barring a marginal contraction in FY20, tyre exports grew 60 per cent in the last five years, from ₹8,825 crore in FY16 to ₹14,097 crore in FY21.

According to ATMA, the sector-specific interventions by the Government helped the industry increase its export competitiveness. The curbs on indiscriminate import of tyres provided the industry the much-needed stimulus.

Demand outlook for Indian tyre industry remains favourable: ICRA

Indian-manufactured tyres are exported to over 170 countries including some of the most discerning markets in North America and Europe. The top five export markets for Indian tyres in FY21 were the US, Germany, France, Italy and the UK. Tyre exports grew in double digits in each of the top-five export markets in FY21. The US continues to be the largest market for Indian tyres, accounting for 17 per cent of tyres exported during the year.

The tyre industry is hopeful of maintaining the tempo in exports despite supply chain-related challenges as both global growth and global merchandise trade volumes are expected to increase in 2021. The tyre industry will continue to target newer markets for exports, ATMA said.

According to ATMA, the industry has the potential to significantly grow exports from India in the next 3-4 years if certain roadblocks, especially over access to natural rubber (NR), are removed. The industry needs to adhere to the pre-import condition for NR import against (tyre) export obligation. This constricts operations and affects exports. ATMA has urged the Government to improve NR availability and quality to increase the sector’s competitiveness.

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