Indian tyre exports bounce back in second half of 2023-24

New Delhi, June 12 (IANS) India’s tyre exports surged in the second half of 2023-24 to touch the Rs 23,073 crore mark for the full financial year, to match the figure for the previous year, according to a statement issued by the Automotive Tyre Manufacturers' Association (ATMA).

In the first half of the year, tyre exports were severely impacted by declining demand due to the slowdown in advanced economies, geopolitical uncertainties and inflationary pressures, ATMA said.

Indian tyres are being exported to over 170 countries including advanced markets such as the US and EU countries.

Tyre exports from India made a sharp recovery in the second half of FY2023-24 to go up by 12 per cent in value terms compared to the previous year, according to data compiled by the Ministry of Commerce.

"The resurgence witnessed in tyre exports in the second half of the year despite a tough external environment is a testament to the resilience of the Indian tyre industry to ride through challenging times and carve a niche for itself," ATMA Chairman Arnab Banerjee said.

“With a turnover of approximately Rs 90,000 crore and exports of over Rs 23,000 crore, the Indian tyre industry is one of the few manufacturing sectors having a high export-to-turnover ratio,” ATMA said.

ATMA sees the improvement in economic activity worldwide as offering a further opportunity for Indian tyre manufacturers.

However, ATMA claimed that certain roadblocks, especially with regard to accessing natural rubber, need to be removed to facilitate exports.

The tyre industry needs to meet pre-import conditions for natural rubber import against (tyre) export obligation. This makes the operations very constrictive and affects export performance, it said.

"The export obligation period needs to be restored to 18 months. The export obligation period (for tyres) was reduced from 18 to 6 months a while ago making it tough for the industry to access a raw material which is in short supply domestically," ATMA added.

Disclaimer: This story has not been edited by the Sakshi Post team and is auto-generated from syndicated feed.