Tyre Industry Body Seeks Duty Relief Amid West Asia Supply Disruptions

The Automotive Tyre Manufacturers Association (ATMA) has formally requested the Government of India to broaden its customs duty relief measures, citing mounting supply chain pressures stemming from the ongoing West Asia crisis and volatility in global crude oil markets.

In a representation to the government, ATMA acknowledged a recent decision to grant temporary customs duty exemptions on select raw materials, including synthetic rubber and certain resins until 30 June 2026, calling it a timely and constructive step. However, the industry body argued that the relief does not go far enough.

Several critical inputs,  among them polyester and nylon tyre cord fabric, bead wire, steel tyre cord, carbon black, processing oils, and petrochemical-based chemicals, continue to attract significant import duties even as prices remain volatile and supply chains remain under pressure, ATMA said.

Crude-linked materials account for approximately 60–70 per cent of total raw material costs in tyre manufacturing. Ongoing disruptions to key shipping corridors, including the Strait of Hormuz and the Suez Canal, have contributed to rising freight charges, higher insurance premiums, and delays in shipment schedules, the association noted.

ATMA also flagged specific concerns around the availability of bead wire, a component central to tyre safety. Domestic suppliers are reportedly facing production constraints due to shortages of industrial gas and LPG. In response, the association has requested a temporary exemption from Quality Control Order requirements for bead wire imports to prevent disruptions to tyre assembly lines.

Arun Mammen, Chairman of ATMA, said the government's initial support was appreciated but added that extending duty relief to other critical raw materials remains essential to maintain production stability and cost competitiveness given continued global uncertainties.

Beyond raw material duties, ATMA has called for targeted upstream interventions, including ensuring adequate sulphur supply for tyre and insoluble sulphur manufacturers. The association has also asked refineries to sustain output of rubber process oils and related feedstocks, while gradually shifting future production toward higher-value materials such as Neodymium Polybutadiene Rubber and Solution SBR.

The association underscored the broader economic consequences of any supply disruption, noting that tyres are essential to freight logistics, agricultural distribution, and passenger mobility. Farm tyre shortages in particular could affect agricultural supply chains, ATMA warned.

ATMA stated that it remains aligned with the government's objectives around domestic manufacturing, quality standards, and supply chain resilience, and indicated that continued dialogue between policymakers and industry would be key to navigating the current period of external uncertainty without adverse consequences for end-users.