News from tyre manufacturers and distributors - Tyre makers and dealers at an impasse

Tyre makers and dealers at an impasse

Business Published the 09/02/2010

The India tyre dealers’ federation is fighting to end import duties on radial tyre imports. However, the tyre manufacturers disagree, arguing that a zero import duty on tyres isn’t practiced in any other country, and the impracticality of duties for raw materials exceeding those of finished goods.

Currently, India has a duty of 20% of rubber and 8% of tyre imports.  

Additionally, increasing duties on raw material imports are increasing the price of domestically produced tyres. Alok K Modi, director of Modi Tyres agreed and said, “If we abolish import duties for tyres, then the government should close all the industries in India –automobile, two-wheeler, steel– if we can import everything without any duty.”

The vested interest of both organizations currently prevents them from reaching an agreement.