The decline in tire production was also followed by the slowdown in the auto sector

Chennai, Ta. 18 September 2019, Wednesday

In the first six months of the current fiscal year, the country's tire production has been down four per cent year-on-year due to the downturn in the domestic market. The production of tires used in motorcycles and in passenger vehicles is declining. Motorcycle tire production did not have a significant impact during the fiscal year 2 recession. However, the impact on the tire production of passenger vehicles was also seen at that time.

Despite the decline in production, the country's tire exports have seen a growth of 8% in the first six months of the current fiscal year. According to the Automotive Tire Manufacturers Association, the overall production of tires during April-June 1 stood at 5.4 lakh units, compared to 5.5 lakh units in the period of 1 year.

The production of tires used in passenger vehicles has dropped by seven percent while the production of two-wheeler tires has declined by 7 percent. Production of truck and bus tires was almost steady, with a 1 percent growth, association sources said. The country is currently experiencing a severe downturn in the auto sector, which seems to have an impact on tire production. Auto sales numbers have been steadily declining for more than 6 months.

In the first six months of the current financial year, tire exports have seen a growth of 8%, as far as exports are concerned. Exports of truck and bus tires are high. In the positives for the tire industry, rubber production has also increased. In the first six months of the current financial year, natural rubber production is up 5%. However its consumption has declined.