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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.
Hans India
03-07-2025
- Automotive
- Hans India
Tyre Exports Rise 9% To Rs 25k Cr
New Delhi: Tyre exports from India grew 9 per cent year-on-year to Rs25,051 crore in FY25 despite headwinds, including trade policy uncertainties and global supply chain disruptions, the Automotive Tyre Manufacturers Association said on Wednesday. With nearly 40 per cent of the industry's natural rubber (NR) requirement met through imports due to limited domestic availability, the Automotive Tyre Manufacturers Association (ATMA) said there is an urgent need to accelerate domestic production through focused interventions to meet rising demand. India's tyre exports in 2024-25 increased by 9 per cent year-on-year, reaching Rs25,051 crore compared to Rs23,073 crore in the previous fiscal, ATMA said, citing data released by the Ministry of Commerce. With an estimated annual turnover of Rs1 lakh crore and exports exceeding Rs25,000 crore, the Indian tyre industry stands out as one of the few manufacturing sectors in the country with a high export-to-turnover ratio, it added.
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.
New Indian Express
02-07-2025
- Automotive
- New Indian Express
100,000 hectares of Kerala's rubber untapped despite rising national demand
KOCHI: Nearly 100,000 hectares of rubber plantations in Kerala remain untapped, primarily due to ageing trees, owners migrating abroad, and a shortage of rubber tappers, according to the Automotive Tyre Manufacturers Association (ATMA). Across India, the total untapped rubber cultivation area exceeds 200,000 hectares. This comes as the country imports 40-45% of its annual natural rubber (NR) demand, estimated at 1.4 million tonnes, say officials from the representative body of six major Indian tyre companies, which account for over 90% of the nation's tyre production. Speaking to reporters on Wednesday, Arun Mammen, Chairman of ATMA, highlighted that nearly 40% of the industry's natural rubber (NR) needs are currently met by imports due to limited domestic supply. Most Indian-produced NR is consumed locally, leaving very little for export. To tackle this shortage, the tyre industry, guided by the Ministry of Commerce & Industry, teamed up with the Rubber Board of India to launch Project INROAD.
