Lok Sabha Question No. 54 (UNSTARRED), answered on 2015-11-30
Subject: Tyre Industry
Ministry: COMMERCE AND INDUSTRY
Asked by: R. VANAROJA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

## UNSTARRED QUESTION NO. 54. TO BE ANSWERED ON MONDAY, THE 30 TH  NOVEMBER, 2015.

## TYRE INDUSTRY

## 54. SHRIMATI VANAROJA R.:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a)   whether  it  is  a  fact  that  dumped  tyre  from  China  has  peaked  to  30  per  cent  of  the replacement market in India and it is hurting both rubber farmers and the Indian tyre industry; and if so, the details thereof;
- (b)   whether the Government has received any representation from the tyre industry in this regard; and
- (c)   if so, the details thereof and the steps taken by the Government in this regard?

## ANSWER

## वाणिज्य एवं उद्योग राज्यमंत्री ( स्वतंत्र प्रभार )( श्रीमती निममला सीतारमि ) THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): No,  Madam.  As  per  information  provided  by  Automotive  Tyre  Manufacturers' Association  (ATMA)  sale  of  only  one  category  of  Chinese  tyres  i.e.    Truck/  Bus Radial Tyres has peaked to 30% of the replacement market.
- (b): Yes.  Automotive  Tyre  Manufacturers  Association  (ATMA)  has  requested  to  put import of Truck/ Bus Radial Tyres in the restricted list, commence investigation on dumping of tyres from China and for increasing customs duty on tyres.
- (c): As per trade data, (Annexure) the volume of import of tyres had actually come down during 2014-15 from a high of 2013-14/2012-13 and has increased only in  May 2015-16. It will be too early to place an immediate restriction on the basis  of  the  trend  noticed  in  May-June  2015.  Investigation  on  dumping  of tyres  from  China  has  been  referred  to  Directorate  General  of  Anti-Dumping and Allied Duties (DGAD) and Director General, Safeguards respectively for examination and appropriate action. Further, the Competition Commission of India  is  investigating  a  case  against  certain  tyre  companies  for  alleged contravention of the provisions of Section 3 (Anti-competitive agreements) of the  Competition Act, 2002.  Moreover increasing the customs duty on tyres beyond 10% would not be desirable since the customs duty as per Foreign Trade Agreements (FTAs) are lower.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 54  FOR ANSWER ON 30.11.2015

Import of Radials Tyres used on Buses/Lorries

| 1         | 2            | 3            | 4            | 5            | 6            | 7            | 8            | 9            | 10                       | 11      | 12         |
|-----------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------------------|---------|------------|
| Month     | Year 2012-13 | Year 2012-13 | Year 2013-14 | Year 2013-14 | Year 2014-15 | Year 2014-15 | Year 2015-16 | Year 2015-16 | %change in 2015-16 w.r.t | 2012-13 | %c 201 w.r |
|           | Qty.         | Value        | Qty.         | Value        | Qty.         | Value        | Qty.         | Value        | Qty.                     | Value   | Qty        |
| April     | 128997       | 41.16        | 124361       | 51.42        | 95313        | 55.12        | 86450        | 82.3         | -32.98                   | 99.95   | -30.       |
| May       | 169513       | 48.03        | 142016       | 59.77        | 82729        | 52.67        | 104988       | 91.39        | -38.06                   | 90.28   | -26.       |
| June      | 196090       | 73.72        | 114150       | 61.05        | 81250        | 61.79        | 134029       | 114.78       | -31.65                   | 55.70   | 17.        |
| July      | 111465       | 67.7         | 123112       | 74.87        | 57471        | 53.5         |              |              |                          |         |            |
| August    | 134252       | 66.86        | 105242       | 85.99        | 55088        | 57.04        |              |              |                          |         |            |
| September | 116653       | 61.63        | 106475       | 79.39        | 59982        | 52.84        |              |              |                          |         |            |
| October   | 122103       | 56.5         | 65125        | 61.52        | 60557        | 53.12        |              |              |                          |         |            |
| November  | 192941       | 62.63        | 52520        | 62.98        | 79335        | 73.5         |              |              |                          |         |            |
| December  | 125708       | 60.63        | 116605       | 64.5         | 80227        | 70.11        |              |              |                          |         |            |
| Jan       | 149984       | 61.25        | 107403       | 65.6         | 100315       | 93.43        |              |              |                          |         |            |
| Feb       | 131737       | 41.55        | 90636        | 54.95        | 66287        | 61.28        |              |              |                          |         |            |
| March     | 38604        | 43.79        | 72077        | 46.99        | 76551        | 80.14        |              |              |                          |         |            |
| Total     | 1618047      | 685.45       | 1219722      | 769.03       | 895105       | 764.54       | 325467       | 288.47       |                          |         |            |

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Source: DGCIS.

(Rs. in Crore)