Tyre exports from India to grow by 15% in FY2023 says ATMA

It is estimated that India exported tyres worth Rs 17,816 crore in the Apr-Dec 2022 as against Rs 15,507 crore in the year-ago period.


The Indian tyre industry is fast integrating with global supply chains helped by the globally aligned regulatory environment in the country that has led to an increase in the addressable market for domestically manufactured tyres.

The Automotive Tyre Manufacturers’ Association (ATMA), the apex body representing tyre makers in India, estimates that the exports of domestically manufactured tyres grew up by 50 percent last year and we are likely to close the ongoing financial year with nearly 15 percent growth, said Satish Sharma, Chairman, ATMA. He was speaking at the ATMA Partners’ Summit 2023 in New Delhi.

He says what has helped the industry maintain growth momentum both domestically and in the export markets is the consistent support by raw material partners who have stood steadfastly with the industry at a time when supply chains got disrupted earlier due to Covid and then due to geo-political concerns. Sharma stated while addressing nearly 300 senior representatives from tyre industry’s raw material manufacturers including carbon black, reinforcement materials, rubber chemicals and synthetic rubbers among others.

Notwithstanding challenges to the global economy due to recessionary conditions, rising interest rates and political turmoil which has led to slowing of external demand, the Indian tyre exports have held on their own. Tyre exports from India went up by 15 percent during the Apr-Dec period of FY23, as per the latest statistics from Ministry of Commerce, government of India. It is estimated that India exported tyres worth Rs 17,816 crore in the Apr-Dec 2022 as against Rs 15,507 crore in the year-ago period.

The ATMA Chairman says the automotive world continues to evolve and continues to put more demands on the tyre industry and its supply chain partners. India has witnessed compression of the emission norms lifecycle by going straight from BSIV to BSVI. A lot of that responsibility is now falling on the tyre industry.

“OEMs are expecting the tyres to contribute in a very significant way to meet the exceeding demands now being put on them. There are enough regulations happening on the noise front, rolling resistance etc and it is imperative for the tyre industry’s supply chain partners to enable the industry to meet these requirements,” added Sharma.

He believes that there is a renaissance of manufacturing happening in India and that is powering the economy. Manufacturing’s contribution to GDP, which has remained stuck at 14-15 percent of GDP, is likely to shake and go up to an excess of 20 percent. 

“Tyre industry in India that has completed an investment of over Rs 35,000 crore in new capacity creation and debottlenecking in the last three years is poised to meet the demands of a growing economy,” concluded Sharma.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 14-03-2023 at 15:58 IST
Exit mobile version