Centre not allowing import of certain tyres: Automakers

Mumbai|New Delhi: Multiple automakers have complained of not being issued the necessary licences to import certain tyres from China despite multiple representations to government agencies during the four months since imports were restricted by the centre.

Vehicle manufacturers claim that while they have been granted licences to import certain high-performance tyres meant for vehicles to be exported, the same is not being extended for vehicles to be sold in India. These tyres are not manufactured in India, they said.

The government had moved the import of vehicle tyres to restricted category in June to prevent dumping of cheap imports – a bulk of which came from China.
“What is the logic (to not grant a licence) when these high-performance tyres aren't available in India? How is one supposed to sell the vehicles here? And why then permit for export?” questioned an executive at a leading Indian automaker who did not want to be identified. “It seemed as if they don’t want to give any waiver for domestic (sale) if it is coming from China.”

However, a senior government official in the know of the development refuted these claims. “Licences are being issued to a number of people. It depends on their application.” A segment of the high-performance motorcycles, which are marketed in India, are now being equipped with domestically sourced as opposed to imported Metzeler tyres, according to media reports.
“The government was supposed to come out with guidelines for domestic trading but there is a stalemate there,” said an industry expert requesting anonymity.

These high-performance tyres in question have to be imported because they are not manufactured locally due to low demand, said Rajiv Budhraja, director general of Automotive Tyre Manufacturers’ Association. Due to standardised suppliers, some local units are required to import components like tyres from pre-specified suppliers, he said.