From February 19 this year, the Indian Ministry of Commerce imposed anti-dumping duties on radial tires of commercial vehicles imported from China and Thailand. India's restrictions on Chinese tyre imports have been initially intended to protect the country’s tire manufacturers, but it seems that this purpose has not been achieved because the tire market in India is already in short supply, and limiting the import of tires has caused damage to the auto industry. This is not worth the candle. .
Follow the United States
Due to the sharp decrease in tire imports from China and Thailand, the shortage of radial tires on the Indian domestic market led to the forced production cutbacks of several automobile companies' commercial vehicle production lines. Pisa Luodi, head of the commercial vehicle division of Tata Motors, said that in the past one or two months, most manufacturers in India have encountered the production bottleneck of tire shortage. Tata commercial vehicles have to reduce production by 5% to 10%. At present, Tata is discussing with tire suppliers about solutions. Ashok Leyland, another Indian commercial vehicle manufacturer, also complained that the government’s restrictions on Chinese tire imports have reduced its own production by 20%.
The Indian automobile market has developed rapidly in recent years, but it is constrained by the tire industry's short board, and many auto companies can only worry. Dilip Chenowi, director of the Indian Automobile Production Association, feels helpless: “The pace of expansion of domestic tire companies in India lags behind that of the automotive industry, coupled with restrictions on imports. What other options are there for car manufacturers to reduce production? â€
India's domestic car tire industry has formed a "cartel", which controls the profitability of the internal control of the price, and externally it actively presses the government to exclude imported tires. After the United States restricted the import of Chinese tires, India subsequently adopted a follow-up policy.
Restriction policy is difficult to sustain
After restricting tires from countries such as China and Thailand, India’s major tire companies are preparing to invest in radial tires to fill the market gap. However, Sharma, India’s chief tire manufacturer, Apollo Tire India, frankly stated that even if Indian and international manufacturers increase their investment in radial tires, Indian tires may still be in short supply in the next three years. Indian tire manufacturers will thus receive high prices. Monopoly profits. In response, Cherokee, director of the Indian Automobile Production Association, said that it is very difficult to do business with the Indian tire industry's "cartel" and all Indian car manufacturers welcome imports.
In addition to monopoly factors, Indian tire production technology is far below the world average, and it is also an important reason for the shortage of tires. The production capacity of radial tires is an important indicator of the level of tire production technology in a country. India's current level of meridianization is only 9%, while China is 70%, and the world average is also 65%. India has almost no all-steel tire production line, and nylon, the raw material for tire manufacturing, is too expensive, which makes its tire production costs much higher than China. It can be seen that India's restriction on Chinese tire imports is really a double-lost decision.
Gao Zhiyuan, First Secretary of the Economic and Commercial Department of the Indian Embassy in China, said at the China-India Development Forum 2010 held in Beijing on March 30th, “Trade friction is a very common thing, with 50% to 60% of trade between China and India. Friction was ultimately resolved through consultation between the parties, and analysts believe that the actual situation that occurred after the Chinese tires are restricted will help India partially lift restrictions on Chinese tire imports.
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