Association urges govt to consider policy support to tackle emerging challenges
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GIRI KVS
The Automotive Tyre Manufacturers Association (ATMA) has warned that the ongoing tensions in West Asia could have serious implications for India’s tyre industry and its supply chain, and has urged the government to consider urgent policy support to address the emerging challenges.
In a representation submitted to the government, ATMA said the escalating geopolitical situation in the region could significantly disrupt tyre exports, push up raw material costs and create logistical bottlenecks for manufacturers.
According to the industry body, India exports tyres worth around $250–260 million annually to West Asian markets, which are likely to be affected if the situation worsens. The association also cautioned that disruptions in key maritime routes such as the Strait of Hormuz and the Suez Canal could hamper shipments not only to West Asia but also to other key markets, including Europe, the US, and Africa. Such disruptions could lead to longer transit times and higher freight costs, further straining the industry.
Cost pressure
The industry is also facing cost pressures arising from the sharp volatility in crude oil prices, which is hovering around $100 per barrel. Crude oil derivatives account for 60–70 per cent of the total raw material cost in tyre production. Several key tyre manufacturing inputs — including synthetic rubber, carbon black, processing oils and tyre cord fabrics — are derived from crude oil.
Further, disruptions in global shipping routes are likely to adversely affect the raw material supply chain of the tyre industry, which is dependent on imports of several critical inputs such as natural rubber, synthetic rubber, chemicals, nylon tyre cord fabric and other petrochemical derivatives.
Arun Mammen, Chairman, ATMA, said: “For the Indian tyre industry, the combined impact of rising input costs, freight disruptions and export uncertainties could affect competitiveness in international markets”.
ATMA has requested the government to consider several measures to support the industry, including reinstatement of earlier RoDTEP rates for tyres, enhancement of duty drawback rates, and addressing the inverted duty structure between tyres and natural rubber, a key raw material.
Import support
The association has also urged the government to facilitate imports of natural rubber by removing import restrictive conditions such as port restrictions on import, removing pre-import condition and restoring export obligation period to 18 months.
ATMA has also requested the government to categorise the tyre industry and its Tier-1 supply chain as ‘Essential’ sectors to ensure uninterrupted availability of natural gas and LPG, which are critical inputs used in tyre manufacturing.
Published on March 12, 2026