New Delhi [India], February 6 : The Department for Promotion of Industry and Internal Trade (DPIIT) has taken strides to bolster the Indian Tyre Industry, aiming to promote and incentivize its growth.
According to a press release, with a surge in domestic consumption and exports, fueled by increasing mobility and industrialization, the Indian tyre sector has witnessed notable expansion.
This growth trajectory has been further propelled by robust research and development activities and the introduction of advanced and eco-friendly tyre variants.
To safeguard against the influx of substandard products, prevent unfair trade practices, and enhance the quality of domestically manufactured tyres, DPIIT enacted the Quality Control Order (QCO), 2009, regarding Pneumatic Tyres and Tubes for Automotive Vehicles on May 13, 2011.
This move was pivotal in ensuring the protection of human, animal, or plant health, as well as environmental safety.
Sanjiv, joint secretary of DPIIT, stated, "We are working to improve the industry." We continue to solicit feedback and speak with stakeholders throughout this process. We have reviewed the feedback and determined the next course of action based on it.
In a bid to regulate tyre imports more effectively, DPIIT, in conjunction with the Directorate General of Foreign Trade (DGFT), proposed amendments to the import policy of tyres.
Notably, DGFT's notification no. 12/2015-2020, dated June 12, 2020, shifted nine ITC HS codes of new pneumatic tyres from the 'free' to the 'Restricted' category.
Consequently, importers are now required to obtain an Import Licence for tyres covered under this notification.
Under the revised guidelines, applications for tyre imports will be considered from OEMs of vehicle manufacturers, tyre companies with manufacturing operations in India, and authorized vehicle and tyre testing laboratories/agencies recognized by the Government of India.
These imports are primarily for research and development, testing, benchmarking, evaluation, and product development purposes.
An Inter-Ministerial Committee (IMC) has been tasked with recommending the exclusion/inclusion of pneumatic tyre sizes from the list of those not domestically manufactured.
Only tyre sizes produced by more than one manufacturer will be classified as 'domestically manufactured', as per the present mechanism.
Following deliberations and consultations with stakeholders, DPIIT, on January 25, 2023, issued a list of 600 tyre sizes/types not manufactured domestically, yet imported by Original Equipment Manufacturers (OEMs) for the replacement market.
In a recent development, the IMC has conducted a thorough review of the list, leading to the preparation of an updated inventory comprising 960 tyre sizes/types.
Of these, 70 sizes/types, now produced by multiple manufacturers, will be excluded from the QCO exemption list effective March 1, 2025.
This adjustment allows sufficient time for industry stakeholders to exchange product lists and complete validation and testing processes.
The ongoing review of tyre lists by the IMC underscores the government's commitment to fostering a robust and competitive tyre industry in India.
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