ATMA urges government for wider customs duty relief on tyre raw materials

ATMA Tyre Plans Growth

The Automotive Tyre Manufacturers Association (ATMA) has called on the Indian government to expand customs duty exemptions to include more critical tyre raw materials. This request comes as global shipping disruptions and volatile crude oil prices continue to impact supply chains.

Key Highlights

• ATMA urges government to extend customs duty relief to more tyre raw materials
• Supply chain pressures from global shipping disruptions and crude price volatility affect tyre industry
• Bead wire shortages prompt request for temporary import quality control exemption
• Crude-linked materials make up 60–70 percent of tyre manufacturing costs
• ATMA calls for further upstream interventions and sustained dialogue with policymakers

ATMA's Request for Broader Duty Relief

ATMA formally asked the government to extend customs duty relief to polyester cord fabric, bead wire, steel tyre cord, carbon black, and other essential inputs. The association acknowledged the government's recent move to temporarily exempt synthetic rubber and certain resins from customs duties until 30 June 2026. ATMA described this as a positive step but argued that it does not cover all necessary materials.

According to ATMA, several key inputs still face significant import duties. These include polyester and nylon tyre cord fabric, bead wire, steel tyre cord, carbon black, processing oils, and petrochemical-based chemicals. Prices for these materials remain unstable, and supply chains are under pressure due to ongoing global events.

Impact of Global Shipping Disruptions

Crude-linked materials make up about 60–70 percent of total raw material costs in tyre manufacturing. Disruptions in major shipping routes, such as the Strait of Hormuz and the Suez Canal, have led to increased freight charges, higher insurance premiums, and shipment delays. ATMA highlighted these challenges in its representation to the government.

The association also raised concerns about the availability of bead wire, a key component for tyre safety. Domestic bead wire suppliers are facing production issues due to shortages of industrial gas and LPG. To address this, ATMA has requested a temporary exemption from quality control order requirements for bead wire imports. This measure aims to prevent disruptions in tyre production lines.

Additional Industry Concerns

ATMA Chairman Arun Mammen expressed appreciation for the government's initial support. However, he emphasized the need to extend duty relief to other critical raw materials to maintain production stability and cost competitiveness amid ongoing global uncertainties.

Beyond customs duties, ATMA has called for targeted upstream interventions. These include ensuring a sufficient sulfur supply for tyre and insoluble sulfur manufacturers. The association also urged refineries to maintain output of rubber process oils and related feedstocks while gradually shifting towards higher-value materials such as neodymium polybutadiene rubber and solution SBR.

ATMA warned that any disruption in tyre supply could have wider economic consequences. Tyres are essential for freight logistics, agricultural distribution, and passenger mobility. Shortages of farm tyres could impact agricultural supply chains.

The association stated its alignment with government goals on domestic manufacturing, quality standards, and supply chain resilience. ATMA emphasized the importance of continued dialogue between policymakers and industry to manage current external uncertainties and avoid negative impacts on end-users.

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CarBike 360 Says

The tyre industry’s call for duty rationalization reflects deeper structural challenges in sourcing raw materials. Timely intervention could not only ease cost burdens but also ensure long-term resilience for manufacturers navigating global uncertainties and fluctuating input prices.