Tyre Plants in India Face Production Decline Due to Natural Rubber Shortage

Tyre production in India dropped by 10% in July owing to a scarcity of natural rubber, according to the Automotive Tyre Manufacturers Association (ATMA). The projected local production of natural rubber fell short, leading to logistical challenges and impacting investments in the tyre sector.

Production at several tyre plants in India dropped by 10% in July due to a shortage of natural rubber, the Automotive Tyre Manufacturers Association (ATMA) reported on Thursday.

ATMA noted that domestic natural rubber availability has worsened this fiscal year. The projected production of 60,000 tonnes in June 2024 fell short, with actual availability hitting just 30,000 tonnes.

Rajiv Budhraja, ATMA's Director General, stated that some member companies suffered over a 10% decline in production due to the shortage. He highlighted that imported rubber, restricted to two ports, is being transported between plants to maintain operations. This logistical issue, coupled with anticipated domestic deficits in natural rubber, is troubling for an industry heavily investing to meet growing demand.

(With inputs from agencies.)