India’s tyre industry is facing a shortage and unpredictable supply of natural rubber, a crucial raw material. The Automotive Tyre Manufacturers Association (ATMA) has raised concerns with the Rubber Board.
ATMA Director General Rajiv Budhraja stated, “The tyre industry has been experiencing tightness in domestic availability of natural rubber for some time.” The association urged the Rubber Board to improve supply to prevent production disruptions.
ATMA represents major tyre companies in India, including Apollo Tyres, Bridgestone India, CEAT, Goodyear India, JK Tyres, and MRF. Natural rubber is essential for products like heavy-duty and bicycle tyres, tubes, hoses, and conveyor belts. Around 70% of natural rubber is used by the automobile industry.
In 2023-24, India produced 8.5 lakh tonnes of natural rubber, but consumption was 14.2 lakh tonnes. The country’s natural rubber stock at the start of the financial year was 3.7 lakh tonnes, down from 4.4 lakh tonnes the previous year. Despite high prices, the industry faces a severe raw material crunch.
The association suspects that some producers or traders might be withholding rubber in anticipation of higher prices. This has led to increased reliance on imports, which totaled 4.9 lakh tonnes in FY24, mainly from Indonesia, Vietnam, and Cote d’Ivoire.
India’s tyre industry is one of the largest globally, producing over 200 million units annually. The industry aims to double its export value by 2030, targeting Rs 50,000 crore from the current Rs 23,000 crore.
Prime Minister Narendra Modi recently urged the industry to collaborate with farms to reduce rubber imports. Four major tyre makers have committed Rs 1,100 crore for rubber plantations on 2 lakh hectares in the North Eastern states to boost domestic production.