The import of automotive tyres has declined to 2.4 million in 2018-19 from 5 million in 2017-18 mainly due to increase in the duty and taxes. According to the industry sources, the government raised duties in 2017-18 to help local industries grow and this initiative coupled with the rupee devaluation cut the imports of tyres to half. Despite the decline of 2.6 million tyres, the market did not observe any shortage as demand is being met through smuggled tyres.

The sources were of the view that the present government seems determined to curb this menace but it needs to translate its words into action because right now smuggling of tyres is around 65 percent and urged the government to take strict measures to curb smuggling. It is a good omen that new players are getting into the tyre manufacturing but they would have to face a tough time if smuggling is not controlled.

The entry of new players proves that this sector is viable and growing to attract international players as the country has a big market for the automotive tyres. The local manufacturers have been fighting battle in car and van radial tyres against the smuggling and heavy under invoicing, the sources said, adding the government must stop smuggling and under invoicing to help the local industry grow.

The sources further said the government has to make it a viable market for the new plants by curbing smuggling and under invoicing. How the local tyre manufactures can compete when around 30 percent of duties (custom & regulatory duties) are not paid by smugglers.