Indian tyre companies cutting imports owing to cheap domestic market
Indian Automobile market is on its highest swing where all car manufacturers are in line to grab their share in almost all segments. The automobile industry flooded with demand has also triggered same scenario in ancillary market as well. Recently the Indian tyre companies are found cutting down their imports as they are facing raw deals in domestic market itself. The domestic market is giving the Indian tyre companies much lucrative deals then the import options.
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Indian Automobile market is on its highest swing where all car manufacturers are in line to grab their share in almost all segments. The automobile industry flooded with demand has also triggered same scenario in ancillary market as well.
Recently the Indian tyre companies are found cutting down their imports as they are facing raw deals in domestic market itself. The domestic market is giving the Indian tyre companies much lucrative deals then the import options. As per Reuters report, the Indian Tyre maker are getting 15% cheaper deals in their domestic market as compared to foreign markets. At this time India which is world's fourth largest rubber producer make its imports mainly from Malaysia, Thailand and Indonesia.
As per the figures revealed on Friday, the highest traded RSS-4 rubber (ribbed smoked sheet) was priced at Rs 197 or $4.36 per Kg in India and the same rubber was priced at Rs 203 or $4.5 per Kg in Bangkok. Thus the reports says that Indian tyre manufacturers are buying raw material aggressively from local markets. Another major factor for shedding down the imports is that within past one month the prices of rubber has taken a hike of 1% in Indian as against 9% in International markets.
Reports claim that in India, the rubber prices are 15% cheaper even after considering import duty and freight charges. Reports earlier prompted 20% import duty on natural rubber and with that the Indian tyre producers were paying as much as Rs. 35 as the premium charge on imports from Bangkok market. But the things have changed drastically now as the tyre manufacturers are looking forward for the domestic markets for the raw material. Dealers based in Kerela are stating that they have reduced the imports to a large extent and only the existing ones are carrying on and if the same continues, the imports will take a real big dip in imports for the January to March period.
Reports claims that a total 143,468 tonnes of Natural rubber has been imported in the period of April and November. And in the year 2010/2011, India is expected to produce 850,000 tonnes of natural rubber which is 4.8% dip from previous estimates owing to heavy rains. And at the same time the India's 2010/11 tyre production is expected to increase at good pace to reach 121.4 million units.
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