The tyre import has slashed by over 50 percent in FY18-19 following increase in duty.

This was stated by Hussain Kuli Khan, CEO, General Tyre Monday.

Kuli further stated that in 2017-18 the government raised duties to help local industries grow and this initiative coupled with the rupee devaluation cut the imports of tyres into half.

He said that around 5 million tyres were imported in 2017-18 and after the increase in duties, the imports came down to 2.4 million in 2018-19. However, despite this decline of 2.6 million tyres in FY 2018-19, there was no shortage of tyres in the markets.

He welcomed the news of two new entrants in tyre manufacturing, saying the market was big enough for all and added that the influx of new players proved that this sector was viable and growing to attract international players but they would face a tough time, if smuggling of tyres into the country was not stopped.

"The present government seems determined curb this menace but it needs to translate its words into action because right now smuggling of tyres is around 65 percent of the total market volume."

"We have always been advocating that the government must stop smuggling and under invoicing to help the local industry grow. But unfortunately we had very limited success in this," he said and added said that attracting foreign investors was the easy part.

"Now, the government has to make it a viable market for the new plants by curbing smuggling and under invoicing," he said.

He also requested the government to rationalize duty tariff, saying that local tyre manufactures cannot compete in existing 30% duties (custom & regulatory duties), creating opportunities for smugglers.

Copyright Business Recorder, 2019