Indian Tyre Market
Tyre dealers across India are urging the government to lower the import duty on tyres to five per cent from the existing 20 per cent. The request aims to “checkmate the activities of the domestic tyre majors,” reports Team India.
All India Tyre Dealers’ Federation wants a level playing field for domestic tyre dealers enabling them to source foreign brands at competitive prices. The members complain that tyre manufacturers have not lowered the prices of their products despite a drop in natural rubber costs.
“The countervailing duty (excise duty) may remain unchanged for both the domestic and imported tyre brands. However, import duty for truck and bus tyres should be reduced to five per cent from the present 20 per cent instantly rather than waiting for the next Union Budget,” AITDF said in a statement.
On a more positive note dealers are expecting good news for the industry following the up and coming Union Budget.
It is believed that once VAT is implemented from the next fiscal period, tyre companies will benefit. Strong demand from both the OEMs and the replacement market is another reason for the growing interest in tyre stocks, writes Sify Finance.
Stock prices of all the tyre companies increased at the close of last week. MRF (up 1.5 per cent at Rs 2,589.30 on BSE), Apollo Tyres (up 1.49 per cent at Rs 280.10), Goodyear (up 1.91 per cent at Rs 64.10), JK Industries (up 3.25 per cent at Rs 85.30) and Ceat (up 6.11 per cent at Rs 72.95).