Indian tire industry influences higher demand, demonitization impact growth – tire review magazine euro dollar exchange rate history

.

Low-cost imports from China have been growing at a rapid pace and now account for a significant share of the radial truck tires in the replacement market. Given that the Chinese radial truck tires are often 25-30% cheaper than the Indian variants, this is resulting in faster decline of the truck bus bias segment python tutorial. The country has already witnessed closure of few tire plants and others operating at low capacity utilization because of this threat.

The spike in the raw material prices, along with low cost imports, gave a serious blow to the Indian tire industry. While the year saw a stable raw material regime for the first nine months, there was a sharp increase in Q4 to the tune of 15% nokia modem. Natural rubber, a key component of the overall raw material basket, saw prices jump by 52% in Q4 fiscal year 2017 as compared to Q4 fiscal year 2016.


There are two main factors that had great bearing on the Indian tire industry during last nine-month period. First, the demonetization of high currency announced by Indian government on Nov. 8, 2016, led to muted growth in tire consumption for four months usd rate today. The demonetization decision was aimed at curbing corruption, counterfeiting and accumulation of black money. Since most of the cash evaporated from the market in November and December, the Indian tire industry faced very sluggish demand in the months of November and December in 2016 and January of 2017 video editor windows 10. Tire demand started to pick up in February and onward.

India implemented a uniform tax system beginning July 1, 2017 premarket stock futures cnbc. The new Goods and Service Tax (GST) regime has abolished 17 direct and indirect taxes and 22 levies with a single tax. The new GST system is expected to give a new momentum to manufacturing industries in coming years uk to usd. The tire industry is also expected to gain considerably by the implementation of the GST.

Compared to subdued results in the previous year, the Indian automotive industry reported stellar numbers on the back of passenger vehicles (PV) and the two-wheeler segments. The PV segment continued its third year of sustained growth funny quotes about love. It posted growth of 9.2% for fiscal year 2017, outpacing last year’s growth of 7.2%. However, the commercial vehicle (CV) segment grew at a slower pace of 4.2% compared to its previous double-digit growth of 11.5%. This year also saw major gains made by the two-wheeler segment which grew at 6.8% compared to 2.8% in fiscal year 2016. (Source: Automotive Industry Manufacturers Association).

India’s tire exports have increased at a steady rate of about 8% in recent years hkd to usd exchange rate. However, year 2016 witnessed a muted growth in terms of exports exchange rate brl usd. In volume terms, two-wheeler tires registered the fastest growth of 17%, followed by passenger vehicle tires (13%) and truck and bus tires (12%).

Exports to the top 10 countries represent nearly half of the tire exports from India, with the U.S., Germany and United Arab Emirates absorbing about 25% of exports (in value terms). Exports grew at a sharp rate in most of the key destinations, barring Brazil and Pakistan.

Chinese imports continue to pose a threat to India’s tire industry across different tire categories. Chinese imports in India have grown by more than 350% since financial year 2012-13 against the overall import growth rate of 129%. Value of Chinese imports stood at INR 16.9 billion in the recently concluded financial year 2016-17.

Chinese imports continued to rise at alarming rate for the first eight months of the last financial year. Demonetization exercises, which were announced on Nov. 8, 2016, brought down the unorganized segment’s import of Chinese tires, thereby limiting their share in last four months (December, January, February and March) of the year. The unorganized sector, which comprises of big tire dealers, accounts for more than 50% of tire imports from China usd myr exchange rate. TR

Yogender Malik is a New Delhi-based freelance writer on the Indian and South Asian industry and economy, with more than 10 years experience writing on the automotive industry. He also works as an analyst with a New-Delhi-based organization.


banner