West Asia Conflict Threatens Indian Tyre Industry's Global Position

The Automotive Tyre Manufacturers Association warns of disruptions in the Indian tyre industry due to the ongoing West Asia conflict. The group seeks policy support to manage rising input costs, freight issues, and export challenges, crucially affecting raw material supply and the broader mobility ecosystem.

The ongoing conflict in West Asia is poised to significantly impact India's tyre exports, escalate raw material costs, and pose logistical hurdles for the tyre industry, according to the Automotive Tyre Manufacturers Association (ATMA). The organization has appealed for urgent policy measures to tackle these burgeoning challenges.

ATMA has urged the government to classify the tyre industry and its Tier-1 supply chain as 'essential', ensuring uninterrupted access to Natural Gas and LPG, pivotal for manufacturing. Any disruptions could severely affect tyre production and, by extension, various sectors reliant on continuous mobility, such as logistics, healthcare, and public transport.

Geopolitical tensions threaten key maritime routes like the Strait of Hormuz, further complicating exports. Rising crude oil prices intensify cost pressures, given that derivatives form 60-70% of tyre production costs. ATMA seeks government intervention through RoDTEP rates, duty adjustments, and eased import restrictions to stabilize the industry.