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Automotive Tyre Manufacturers' Association (ATMA) said that India has sufficient tyre manufacturing capacity and imports should not be liberalised through free trade agreements (FTAs) by way of duty concessions. It has said to government that the automotive tyres rank at the forefront of those sectors where domestic manufacturing capabilities can render imports unnecessary. It mentioned this was in response to the government seeking feedback about sectors in which India has capabilities to be self-reliant so that upcoming FTAs could be drafted while safeguarding the interests of domestic industry.

It has pointed out that imports should not be liberalised through FTAs by way of duty concessions. India's domestic tyre industry, among the largest in the world, has an annual production exceeding 200 million units across various categories including two-wheelers, passenger vehicles, commercial vehicles, and off-road vehicles. Further, it said, despite adequate manufacturing capacities, over Rs 2,000 crore worth of tyres were imported in the country in the first three quarters of FY24, an increase of 27 per cent over the same period in the preceding year.

ATMA Chairman Arnab Banerjee said over the last few years, the tyre sector has witnessed substantial investments, by leading manufacturers allocating over Rs 35,000 crore towards capacity expansion, technology upgrades, and research and development. As the new capacities go on stream, it is important to meet the demand from domestic manufacturing rather than importing tyres. He further said the domestic tyre industry is today geared to meet all the requirements of domestic and international auto OEMs (original equipment makers) by way of design, development and ensuring regular supply of tyres for all categories and types of vehicles manufactured in the country.