India has the ability to produce tires domestically; free trade agreements should not liberalize imports: ATMA

According to ATMA, the domestic tire sector employs a large number of people, directly and indirectly, in production, distribution, and allied services, supporting around 5 lakh individuals.

The trade association has made it clear that tariff reductions in free trade agreements (FTAs) should not be used to liberalize imports.

The Automobile Tyre Manufacturers' Association, an industry association, said on Monday that India has the capacity to produce tires and that imports shouldn't be liberalized via free trade agreements (FTAs) in exchange for duty breaks.

The automobile Tyre Manufacturers’ Association (ATMA) has informed the Center that the automobile tire industry is at the forefront of those industries where local manufacturing capabilities may eliminate the need for imports. The automobile Tyre Manufacturers’ Association (ATMA) has informed the Center that the automobile tire industry is at the forefront of those industries where local manufacturing capabilities may eliminate the need for imports.

This was in response to the government's request for input on areas where India can function independently so that future free trade agreements (FTAs) may be negotiated while preserving the interests of homegrown business, according to a statement from ATMA.

The trade association has made it clear that tariff reductions in free trade agreements (FTAs) should not be used to liberalize imports. The trade association has made it clear that tariff reductions in free trade agreements (FTAs) should not be used to liberalize imports.

It further said that India's domestic tyre sector, one of the biggest in the world, produces more than 200 million tires annually for a variety of vehicles, including two-wheelers, passenger cars, trucks, and off-road vehicles.

In the first three quarters of FY24, the nation imported nearly Rs 2,000 crore worth of tires, up 27% from the same time the year before, according to ATMA, despite having sufficient production capacity. In the first three quarters of FY24, the nation imported nearly Rs 2,000 crore worth of tires, up 27% from the same time the year before, according to ATMA, despite having sufficient production capacity.

The tire industry has seen significant investments over the last several years, with top manufacturers contributing more than Rs 35,000 crore for R&D, capacity growth, and technological advancements.

Instead of importing tires, it's critical to fulfill local manufacturing demand when the additional capabilities come online, according to ATMA Chairman Arnab Banerjee. He went on to say that the nation's tire sector is now set up to satisfy the demands of both local and foreign car OEMs (original equipment manufacturers) by designing, developing, and guaranteeing a steady supply of tires for all classes and kinds of vehicles produced in the nation.

He went on to say that the nation's tire sector is now set up to satisfy the demands of both local and foreign car OEMs (original equipment manufacturers) by designing, developing, and guaranteeing a steady supply of tires for all classes and kinds of vehicles produced in the nation. "The industry is producing all kinds of tires ahead of the demand curve.

The fitments are prepared by tire producers as soon as a vehicle is conceptualized. Because of this, car OEMs aren't importing tires, and the local tire market is fulfilling demand, Banerjee said. According to ATMA, the domestic tire sector employs a large number of people, directly and indirectly, in production, distribution, and allied services, supporting over 5 lakh workers.

According to ATMA, the domestic tire sector employs a large number of people, directly and indirectly, in production, distribution, and allied services, supporting over 5 lakh workers. According to the statement, "prioritizing domestic tire manufacturing is also essential as the tyre industry consumes over 70% of the domestic natural rubber, which is the livelihood of over 10 lakh rubber growers in the country."

India can maintain its position as the world's leading tyre sector, create jobs, improve sustainability, and propel economic progress by encouraging local manufacturing and using technology breakthroughs. ATMA declared. India can maintain its position as the world's leading tyre sector, create jobs, improve sustainability, and propel economic progress by encouraging local manufacturing and using technology breakthroughs. ATMA declared.