The continuous increase in rubber prices till second quarter of current financial year has severely dented competitiveness and profitability of the industry.
“The tyre Industry has passed through an extremely difficult phase of continuous and significant increase in the price of natural rubber and other key raw materials. Since raw materials account for approximately 70 per cent of industry turnover, the input cost pressure has resulted in severe erosion of net margins. We keenly look forward to the budget for addressing specific concerns of automotive tyre industry,” Mr Neeraj Kanwar, Chairman of the Automotive Tyre Manufacturers Association (ATMA), said.
All large tyre companies have made substantial investments for new projects and expansions primarily in radial truck and passenger car tyres. The radial tyre investments have multiple benefits in terms of fuel saving, longer life and efficient utilisation of scarce raw materials. However, the industry needs an enabling policy framework from the government for these investments to be meaningful.
To increase competitiveness of the industry, ATMA has also asked for waiver of customs duty on those raw materials that have no domestic production.
More detail at:
http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article2857892.ece?ref=wl_industry-and-economy
