The tyre industry is optimistic about its growth prospects, with exports experiencing a 12% increase in the second half of FY2023-24, according to tyre makers. Arnab Banerjee, Chairman of the Automotive Tyre Manufacturers? Association (ATMA), expressed this sentiment during a press conference held in Kochi, along with Rajiv Budhraja, ATMA's Secretary-General, and R. Roopesh, the convenor of the Supply Chain and Resources Group.

ATMA anticipates robust long-term growth for India's tyre industry due to expanding domestic and international markets, coupled with continued government investments in infrastructure. Banerjee, the newly elected Chairman, aims to double the industry's turnover from Rs 1 trillion over the next decade, noting the widespread demand for Indian tyres in over 170 countries.

Citing data from the Commerce Ministry, Banerjee highlighted a significant recovery in tyre exports during the latter half of FY2023-24, witnessing a 12% increase in value. Despite slowdowns in advanced economies, geopolitical uncertainties, and inflationary pressures, the total tyre exports for the fiscal year matched the previous year's figure of Rs 231.25 billion, totalling Rs 230.73 billion. Notably, tyre exports have nearly doubled in the last four years, surging from Rs 128.44 billion in FY20 to Rs 230.73 billion in FY24.

The United States remains the largest market for Indian tyres, accounting for 18% of total tyre exports in FY24. Banerjee emphasised the potential for further export growth if certain obstacles, particularly those related to accessing Natural Rubber (NR), are addressed. Restrictions on NR imports, including pre-import conditions and shortened export obligation periods, hinder operations and impact export performance. Banerjee suggested restoring the export obligation period from 6 to 18 months to alleviate these challenges.

Furthermore, Banerjee highlighted the industry's substantial investments of around Rs 230 billion in greenfield and brownfield capacities over the past 3-4 years. Despite challenges, the industry remains ahead of the demand curve in meeting both domestic and export requirements.

(Source:Hindu Businessline)