Last year, it was recorded that the tyre’s capacity utilization in the Indian market is between 65 and 70 per cent but this year it has increased to 80 per cent over the same period of time. The growth is not only in India but there is also an increase in sales of tyres on the Gold Coast which is why the tyre industry continues to flourish.
The improvement in the automobile industry is one of the major contributors in the tyre sector’s success. Aside from the automobile industry, the policies published by the government are another driving force in the growth. These facts are according to the chairman of the Automotive Tyre Manufacturers’ Association or ATMA, Satish Sharma. Their organization is the representative of around 90 per cent of tyre manufacturers in the country.
Sharma said that the tyre industry was able to benefit from the government policies such as the demonetisation which significantly decreased the imports coming from China. This issue has long been the greatest hurdle in the capacity utilisation in India. Chinese imports lessen even more because of the GST or goods and services tax that was implemented. As a result, import tyres reduced by half of the previous number.
It was November of 2016 when the government made an announcement regarding their decision to withdraw currency notes with high values. On July of 2017, the government said that GST is to be implemented.
Last year, China is able to import around 150,000 tyres monthly but the number is now at 60,000 per month.
Sharma said that they are expecting the number to continue reducing as time passes by because Indian manufactured tyres are now able to compete with the prices of the Chinese imports.
The tyre industry funded Rs 25,000 crore from 2011 to 2016 fiscal years. Sharma is the president of the Apollo Tyres in Asia Pacific and Middle East. His company is planning to add Rs 4,500 until the fiscal year of 2019. Apollo Tyres is only one of the many companies that are planning to invest more in the tyre industry of India. This is a wakeup call to consumers to purchase tyres on the Gold Coast in order to help the current market of the region.