West Asia Tensions May Hit Tyre Exports, ATMA Urges Policy Relief For Industry

(MENAFN- KNN India) New Delhi, Mar 13 (KNN) The Automotive Tyre Manufacturers Association (ATMA) has urged the government to provide policy support as the ongoing conflict in West Asia is expected to disrupt tyre exports, increase raw material costs and create logistical challenges for Indian manufacturers.

In a representation to the government, the industry body said the situation could significantly affect exports and supply chains. India currently exports tyres worth about USD 250–260 million annually to West Asia, which could be impacted by the conflict, PTI reported.

Call for 'Essential Sector' Status

ATMA has requested that the tyre industry and its Tier-1 supply chain be classified as 'essential sectors' to ensure uninterrupted availability of natural gas and LPG, key fuels used in tyre manufacturing.

Any disruption in these supplies could affect tyre production and the broader mobility ecosystem supporting logistics, agriculture, healthcare and public transport, the association said.

ATMA Chairman Arun Mammen said, "For the Indian tyre industry, the combined impact of rising input costs, freight disruptions and export uncertainties could affect competitiveness in international markets."

Shipping and Cost Pressures

The association warned that disruptions in key maritime routes such as the Strait of Hormuz and the Suez Canal could also affect shipments to Europe, the United States and Africa, leading to longer transit times and higher freight costs.

It added that volatility in crude oil prices-currently around USD 100 per barrel-is increasing cost pressures. Crude derivatives account for 60–70 per cent of raw material costs in tyre production, including inputs such as synthetic rubber, carbon black, processing oils and tyre cord fabrics.

Global shipping disruptions may also affect imports of key materials such as natural rubber, synthetic rubber, chemicals and nylon tyre cord fabric, the association said.

Industry Demands

ATMA has sought several policy measures, including restoration of earlier rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, higher duty drawback rates and correction of the inverted duty structure between tyres and natural rubber.

The association also urged the government to ease restrictions on natural rubber imports, remove port limitations and pre-import conditions, restore the export obligation period to 18 months, and consider waiving or reducing import duties on key raw materials that are scarce domestically or not produced in India.

(KNN Bureau)

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