The Infamous Millionaire Club
This may be taken as a sequel to the previous Treadmarks column wherein it was shared how the current times are the best of times and, in certain ways, worst of times for the tyre industry in India. Best of times since Auto sector in the country is showing definite signs of revival and Indian economy is poised to become the fastest growing in the world. Worst of times since automotive tyre imports in India have been surging lately hitting the domestic industry where it hurts the most.
The grimness of tyre imports scenario in India in FY 2014-15 and the factors leading to it were discussed in the previous column.
Well, the tyre imports have shown no let up in intensity in the current financial year as well. In the first five months of current fiscal (April-August 2015), the imports have continued to follow an upward curve and have gone up by another 20% year-on-year.
In the month of August for which data has just come in, a landmark has been achieved in India’s tyre sector and that is what has prompted this column. Regrettably, this landmark is an antithesis of an achievement. A milestone, shocking enough, that the tyre industry in India is finding itself difficult to come to terms with.
The month of August has witnessed tyre imports in India touching one million unit mark putting India in the (infamous) club of large tyre importing countries. For perspective, in FY 2014-15, the average per month tyre import was less than 7 lakh (0.7 million) units.
By Rajiv Budhraja
Full text in PTA October/November issue