Latest news with #ArunMammen
Time of India
12 hours ago
- Automotive
- Time of India
India-UK free trade deal lifts import duties, boosts domestic tyre industry's prospects in UK
The competitiveness of Indian tyre manufacturers in the UK market is set to receive a major boost following the elimination of import duties under the newly-signed India-UK Comprehensive Economic and Trade Agreement (CETA), according to the Automotive Tyre Manufacturers' Association ( ATMA ), reports news agency PTI . According to the report, ATMA on Tuesday said that the removal of customs duties on tyres and rubber products exported from India to the UK will significantly improve price competitiveness and market access for Indian companies. 'This will enable Indian tyre companies to build on the strong export momentum already seen over the past few years and further deepen our presence in developed markets,' said Arun Mammen, chairman, ATMA. The industry body noted that tyre exports from India to the UK grew 11 per cent to ₹732 crore in FY25, up from ₹660 crore in FY24. This follows a 10 per cent growth in FY23, when exports stood at ₹602 crore. With duties now scrapped, ATMA expects this upward trend to not only continue but accelerate. The CETA deal provides immediate export benefits to Indian manufacturers while also safeguarding domestic industry interests. Imports of major tyre categories from the UK into India have been slotted under the 'E10 staging category', meaning the reduction of tariffs will be phased over a 10-year period. 'This dual framework of immediate export gains and gradual tariff relaxation on imports is well-balanced and in the interest of long-term industry sustainability,' Mammen added. India's tyre industry exported over ₹25,000 crore worth of tyres in FY25, backed by strong manufacturing capabilities, consistent R&D investment, and an expanding global footprint. The UK, seen as a key European market, is now expected to emerge as a significant destination for Indian tyre exports under the liberalised trade regime.
Time of India
14 hours ago
- Automotive
- Time of India
India-UK FTA to boost competitiveness of local tyre makers in British market: ATMA
The competitiveness of Indian tyre manufacturers in the British market will be strengthened as a result of the removal of import duties under the India-UK free trade agreement , Automotive Tyre Manufacturers' Association said on Tuesday. Welcoming the Comprehensive Economic and Trade Agreement (CETA) between India and the UK, Automotive Tyre Manufacturers' Association (ATMA) said the deal is a significant step forward in enhancing bilateral trade, particularly for the Indian tyre industry. "The removal of import duties on tyres by the UK under the CETA will significantly strengthen the competitiveness of Indian tyre manufacturers in the British market," ATMA Chairman Arun Mammen said. He further said, "This will enable Indian tyre companies to build on the strong export momentum already seen over the past few years and further deepen our presence in developed markets." ATMA said under the India-UK CETA, all customs duties on tyres and rubber products exported from India to the UK have been eliminated with immediate effect. Live Events "This move is expected to provide a major fillip to Indian tyre exports to the UK - a key European market - by enhancing price competitiveness and improving market access," it added. The tyre industry body said India exported tyres worth Rs 732 crore to the UK in FY2024-25, registering a year-on-year growth of 11 per cent from Rs 660 crore in FY2023-24. This follows a 10 per cent growth in the previous fiscal, when exports stood at Rs 602 crore in FY2022-23. With the elimination of duties, the industry expects this upward trajectory to continue and accelerate in the coming years, it added. ATMA said the free trade agreement with the UK offers a cushion for the domestic industry through a staggered tariff liberalisation schedule. Imports of major categories of tyres from the UK into India have been placed in the E10 staging category, meaning that import duties on these products will be gradually reduced over a ten-year period. This phased approach balances export opportunities with a calibrated opening of the Indian market, it added. "The dual framework of immediate export gains and gradual tariff relaxation on imports is well-balanced and in the interest of long-term industry sustainability," Mammen said. ATMA said the Indian tyre industry, which has already emerged as a significant exporter (exports over Rs 25,000 crore in FY2024-25) with strong manufacturing capabilities and R&D investment, stands to gain significantly under the CETA framework.
The Hindu
12-07-2025
- Automotive
- The Hindu
Need to accelerate domestic Natural Rubber production: Arun Mammen, Chairman, ATMA
India's Natural rubber (NR) consumption is projected to reach 20 lakh tonnes by 2030 and there is a need to accelerate domestic production, Arun Mammen, Chairman Automotive Tyre Manufacturers Association (ATMA), said. 'In FY25, domestic NR production stood at 8.7 lakh tonnes, while consumption was 14.1 lakh tonnes, resulting in a deficit of over 5 lakh tonnes,' he said in an interview. 'This underscores the need for sustained long-term investments in plantation development, tapping, and productivity enhancement,' Mr. Mammen said. Accelerating domestic natural rubber (NR) production is a national priority, given the strategic importance of NR to multiple sectors, especially the tyre industry. Bringing additional area under rubber cultivation—especially in non-traditional regions like the North East—is key. Several North Eastern state governments are proactively supporting this agenda, he said. Mr. Mammen pointed out in a first-of-its-kind public-private partnership, the INROAD (Indian Natural Rubber Operations for Assisted Development) project was launched by ATMA member companies (Apollo, CEAT, JK Tyre, and MRF) in collaboration with the Rubber Board of India. The project aims to develop two lakh hectares of new rubber plantations across the North East and West Bengal. Over 1.25 lakh hectares have been brought under cultivation in the first four years. ATMA member companies have committed ₹1,100 crore to the project, he said. A significant opportunity lies in improving production by tapping nearly 2 lakh hectares of untapped rubber plantations, including 1 lakh hectares in Kerala alone. Union Commerce & Industry Minister has recently emphasized this opportunity during stakeholder consultations in Kerala, Mr. Mammen said. Rubber trees take approximately six to seven years from plantation to tapping, Mr. Mammen said. He also pointed out inverted duty structure on NR is one of the key challenges. 'While tyres can be imported at concessional or zero duty rates under various Free Trade Agreements (FTAs), natural rubber—our primary raw material—attracts a Basic Customs Duty (BCD) of 25% or ₹30/kg (whichever is lower). This is among the highest globally and severely impacts cost competitiveness, particularly when global rubber prices are low. Addressing inverted duty structure is essential to support domestic manufacturing and reduce reliance on imports of finished products,' he said. In the last three to four years alone, the industry has invested approximately ₹27,000 crore across greenfield and brownfield projects. As per a PwC Vision Document, the industry is projected to grow at a CAGR of 11–12% till 2047, Mr. Mammen said.
Time of India
03-07-2025
- Automotive
- Time of India
India's tyre exports cross ₹25,000 crore in FY25 defying global headwinds
India's tyre industry continues to demonstrate robust performance on the export front, with outbound shipments surpassing ₹25,000 crore in FY25 despite global economic uncertainties, according to Ministry of Commerce data. Tyre exports rose 9 per cent year-on-year, climbing to ₹25,051 crore from ₹23,073 crore in the previous fiscal. As per the Automotive Tyre Manufacturers Association (ATMA), this growth comes amid persistent challenges such as volatile trade policies, geopolitical tensions, and disruptions in international supply chains. With an annual turnover nearing ₹1 lakh crore, the tyre industry ranks among India's most export-intensive manufacturing sectors. The growth in exports is being attributed to consistent investments in capacity expansion, improvements in manufacturing efficiency, and increased focus on innovation. Arun Mammen, Chairman of ATMA, credited the sector's resilience to its strategic expansion initiatives post the COVID-19 pandemic. 'Over the past 3–4 years, tyre manufacturers have collectively invested around ₹27,000 crore in both greenfield and brownfield projects. This underscores our long-term commitment to India's growth story,' he said. A recent industry outlook by PwC forecasts that the Indian tyre market will expand at a compound annual growth rate (CAGR) of 11–12 per cent until 2047, driven by a combination of rising domestic consumption, strong export demand, and technological advancement. 'Even though global macroeconomic conditions remain uncertain, India's domestic market offers a solid buffer, making us more resilient to external shocks,' Mammen added. Global footprint and key markets Indian tyre manufacturers currently export to over 170 countries, with the United States accounting for 17 per cent of the total export value—making it the largest market. Other key destinations include Germany (6 per cent), Brazil (5 per cent), the UAE (4 per cent), and France (4 per cent). Farm and Off-the-Road (OTR) tyres continue to dominate the export portfolio, together contributing close to 60 per cent of the total export value. Trade risks and market diversification Commenting on emerging trade policy concerns, particularly the prospect of tariff changes in the US, Mammen noted that the industry is closely monitoring developments. 'We are firm believers in equitable trade and remain committed to expanding into new markets to reduce dependency,' he said. Indian tyre brands have also been gaining international recognition. Four homegrown manufacturers—Apollo Tyres, CEAT, JK Tyre, and MRF—were recently ranked among the 'Top 15 Strongest Tyre Brands' globally by Brand Finance. Natural rubber: A critical bottleneck Despite the export momentum, industry stakeholders caution that access to natural rubber (NR) remains a key constraint. With nearly 40 per cent of the industry's NR needs being met through imports, limited domestic availability poses a long-term challenge. To mitigate this, the industry has launched Project INROAD in collaboration with the Rubber Board of India and under the guidance of the Ministry of Commerce & Industry. Backed by ₹1,100 crore from four ATMA member companies, the initiative aims to expand rubber plantations by 2 lakh hectares and enhance infrastructure and skill development in rubber-growing regions. 'Even with these interventions, India will need significantly more NR to meet its projected demand of 20 lakh tonnes by 2030,' Mammen said. Notably, unlike global trends where synthetic rubber accounts for the majority of usage, Indian tyre manufacturing relies heavily on natural rubber, making up 60 per cent of total rubber consumption. According to the International Rubber Study Group (IRSG), India registered the highest CAGR in NR demand—6.15 per cent between 2020 and 2024—among all major rubber-producing and consuming countries. 'There's a pressing need to ramp up domestic NR production through focused, large-scale efforts,' Mammen emphasised.
Time of India
02-07-2025
- Automotive
- Time of India
India's tyre exports hit an all-time high of 25,051cr in FY24-25
Chennai: Tyre exports from India hit an all-time high of Rs 25,051 crore in FY24-25, up 9% compared to Rs 23,073 crore clocked in the previous fiscal, showed data released by the ministry of commerce. This has come despite significant headwinds due to global geopolitical situation as well as the new US tariff regime under consideration. According to the industry apex body Automotive Tyre Manufacturers Association (ATMA), with an estimated annual turnover of Rs 1 lakh crore, 25% of the tyre industry's turnover is exported, among the highest in manufacturing. Said Arun Mammen, chairman, ATMA: "The tyre industry exports to 170 countries across the mostly exports off-the-road (OTR), farm and industrial tyres to the US." The industry, he added, "is closely monitoring the situation regarding potential US tariffs. At the same time, the Indian tyre industry remains committed to diversifying its export markets," he said. Indian tyres have a major footprint in the United States, European Union, Latin America, and Southeast Asia. The US remains the top export destination, accounting for 17% of India's tyre exports by value, followed by Germany (6%), Brazil (5%), UAE (4%), and France (4%). Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo by Taboola by Taboola Segment-wise, farm/agricultural tyres and OTR tyres comprise nearly 60% of the total tyre export value. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai Indian tyre companies have been ramping up production and R&D spend in the last three to four years, investing around Rs 27,000 crore across greenfield and brownfield projects. According to a PwC Vision document, the Indian tyre industry is expected to grow at a CAGR of 11% to 12% until 2047.
