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    HomeBusinessTyre exports rise 50% to over ₹21,000 crore in FY22

    Tyre exports rise 50% to over ₹21,000 crore in FY22

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    Economy

    Tyre exports have jumped 70 per cent in the last two years since the pandemic hit

    Recording one of the highest growths across sectors, tyre exports jumped 50 per cent to hit a record high of ₹21,178 crore in FY 2021-22.

    Data released by the Ministry of Commerce shows that tyre exports stood at just over ₹14,000 crore In the previous year.

    In the last two financial years, since international trade has been disrupted due to Covid, tyre exports from India have gone up by 70 per cent. “The export performance proves the ability of the Indian tyre industry to meet rising expectations in the new geo-political scenario,” said Satish Sharma, Chairman, Automotive Tyre Manufacturers’ Association (ATMA).

    While farm/ agri and OTR/ industrial tyres have traditionally dominated exports, truck & bus radial (TBR) exports have also risen at a fast pace, growing nearly 2.5 times from ₹1,263 crore in FY19 to ₹3,095 crore in FY22.

    The new radial facilities set up by Indian manufacturers vie with the best in the world in terms of technology. India’s global standing as a reliable supplier has also been a big positive.

    “The industry is vastly helped by the Centre’s Atmanirbhar policy, aimed at creating an enabling environment for industrial growth. The curbs on indiscriminate imports has helped the industry increase the size and scale of production and align with global supply chains,” added Sharma.

    Currently, Indian manufactured tyres are exported to over 170 countries, including markets in North America and Europe. The US continues to be the largest market for Indian tyres, accounting for 19 per cent of exports during the year. The top five export markets in FY22 were the US, Germany, Brazil, the UK and France.

    The tyre Industry has the potential to double exports in the next three-four years. While supply chain disruption is a global concern affecting industries and will get streamlined in due course, roadblocks faced by the Industry domestically, including access to natural rubber, the key raw material in which India is deficient, needs to be addressed. For instance, the industry needs to adhere to pre-import conditions for NR import against (tyre) export obligations. This restricts operations and affects export performance.

    Growth in exports will benefit the entire rubber value chain, including a million rubber growers who are largely dependent on the growth of tyre industry.

    Published on June 09, 2022

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