Indian tyre manufacturer JK Tyre & Industries Ltd lauded the Government’s decision to impose anti-dumping duty for five years, on truck and bus radial tyres from China, a move that is expected ease the burden on the domestic market by creating a level-playing field. The decision, based on the recommendations of the Directorate General of Anti-dumping and Allied Duties, will impose Anti-Dumping Duty in the range of $245.35 – $452.33 per tonne on the import of a certain type of tyres in the heavy vehicle segment.
As pioneers of radial technology in India, JK Tyre has been an advocate for the need of a strict anti-dumping duty on low-grade Chinese truck and bus radial tyres that have distorted the market by impacting the sales of domestic industry. For years, domestic tyre companies have faced unfair competition from Chinese manufacturers, which price their tyres up to 25% lower.
Mr. Vikram Malhotra, Marketing Director, JK Tyre & Industries Ltd, said, “The Anti-Dumping Duty will address concerns related to unabated dumping of cheap low-grade Chinese tyres in the Indian market and will boost the industry. Our Chairman Dr. Raghupati Singhania has been leading the charge for an anti-dumping duty for years now, as it gives a much-needed impetus for the Indian tyre industry. A check on the import of cheap Chinese pneumatic truck/bus radial tyres will guard domestic players by creating an enabling market that will motivate Indian tyre manufacturers to deliver to their customers quality tyres in and outside India.”
Certain factors, including slow demand, low prices and abundant availability of raw material in China led to dumping of these products in markets like India. Currently, almost 80% of the imports are at concessional duties, which is threatening large investments made by domestic tyre manufacturers, causing material injury to the domestic industry.
The new anti-dumping bridges a huge gap by placing a balanced check mechanism on low-quality and cheaper tyre imports, which was a serious issue that was challenging the long-term interests of the Indian tyre industry.
“Besides creating the right conditions for the market, the move to introduce an Anti-dumping Duty will in the long run benefit the consumer, as safety comes with a high premium on quality. Ensuring fair competition will pave the way for tyre companies to produce quality tyres that make allowances for continuous improvement,” Mr. Malhotra added.