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Tyre industry fears being run over by the Chinese

Sambit Saha

The Rs 90 billion domestic tyre industry will soon face a new danger as low-cost Chinese tyres for heavy vehicles are expected to hit the market soon at a substantially lower price. The industry is already reeling under the global recession.

The first target of the Chinese tyres would be the replacement market for heavy commercial vehicles, which contribute about 67 per cent of the total sales of HCV tyres.

Chinese-made radial tyres for HCVs would cost around Rs 3,000 less per pair. In India, the average price of a pair of radial tyres for HCVs is Rs 16-17,000, whereas the Chinese tyres will come at a price of about Rs 14,000.

The Calcutta-based Zenith Finesse, a large-scale importer of Chinese merchandise, would be beginning the imports of HCV tyres to sell in the replacement market in eastern region of the country within two months. In course of time, the tyres would be distributed across the country, with a focus on the replacement market.

"We have informally approached the state government's transport department to ask about specific requirements. We will pass it on to the Chinese manufacturer who will produce six pairs as samples. If the government finds it suitable for the domestic roads and cost competitive, we will go ahead and import tyres in large scale," Pritimoy Chakraborty, director of Zenith Finesse, said.

He also hinted that if it turns out to be a success, the company will explore the option to tap the OEM market in future.

Zenith would also ask the West Bengal state transport corporation to try out the Chinese tyres. The Chinese company located in Hunan province of China would supply the samples to India exclusively through Zenith for trials.

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