Automotive Tyre Manufacturers Association (ATMA) has urged the Government to extend policy support including customs duty relief on critical raw materials to mitigate supply chain uncertainties arising from the ongoing West Asia crisis.
In a representation to the Government, ATMA welcomed the recent decision to grant temporary customs duty exemption on select raw materials such as synthetic rubber and certain resins until June 30, describing it as a timely and supportive step for the industry.
However, the association noted that several other key inputs—including polyester/nylon tyre cord fabric, bead wire, steel tyre cord, carbon black, processing oils and petrochemical-based chemicals—continue to attract significant import duties despite ongoing price volatility and supply constraints.
ATMA highlighted that crude-linked inputs account for nearly 60–70 per cent of total raw material costs in tyre manufacturing.
With crude prices remaining volatile and key shipping routes such as the Strait of Hormuz and the Suez Canal under stress, the industry is facing rising input costs, shipment delays and higher freight and insurance charges.
ATMA has also raised concerns regarding supply constraints of bead wire, a critical component for tyre safety, with domestic manufacturers facing pressure due to shortages of industrial gas and LPG. The association has requested temporary exemption from Quality Control Order (QCO) requirements for bead wire imports to ensure continuity in tyre production.
Arun Mammen, Chairman, ATMA, said: “We appreciate the Government’s timely support. However, given continued global uncertainties, extending duty relief to other critical raw materials is essential to maintain production stability and cost competitiveness.”
The association has further sought targeted interventions to ensure availability of key upstream inputs like ensuring adequate sulphur supply for tyre and insoluble sulphur manufacturers. ATMA also emphasized the need for refineries to sustain supplies of rubber process oils, SBPS and furnace oil, while aligning future refinery output towards high-value materials such as Neodymium Polybutadiene Rubber and Solution SBR.
Published on April 29, 2026