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TOTAL TYRE PRODUCTION IN INDIA

F.Y. 1997 - 98 T0 2010 - 11 CATEGORY Truck & Bus Passenger Car Jeep Light Comml. Veh. (L.C.V.) Tractor Front Tractor Rear Tractor Trailer A.D.V. Scooter Motor Cycle Moped Industrial O.T.R. Aero TOTAL

(In 000 Nos.) 1997 - 98 8095 4263 1342 1903 1075 785 214 528 9577 5582 400 143 37 0 33907 1998 - 99 7913 4571 1247 1917 1085 839 223 593 10975 7277 234 137 37 0 37048 1999 - 2000 8969 6054 1283 1980 1203 903 295 589 10140 9275 516 172 36 0 41415 2000 - 01 8612 6813 1155 2108 1186 852 277 511 9385 11196 119 219 38 0 42471 2001 - 02 8474 7481 1247 2352 1150 785 320 488 8547 12275 135 214 46 0 43514

CATEGORY Truck & Bus Passenger Car Jeep Light Comml. Veh. (L.C.V.) Tractor Front Tractor Rear Tractor Trailer A.D.V. Scooter Motor Cycle Moped Industrial O.T.R. Aero TOTAL

2004 - 05 11092 11862 1462 3945 1311 1096 408 197 9992 18127 124 377 89 0 60082

2005 - 06 11941 13605 1272 4529 1383 1134 596 325 9519 21053 55 514 106 0 66032

2006 - 07 12367 14264 1368 4820 1754 1296 823 381 9643 26079 0* 635 115 0 73545

2007 - 08 13137 16437 1467 5320 1814 1234 886 409 11604 27921 0* 733 141 0 81103

2008 - 09 12839 16571 1469 5298 1842 1315 758 281 10882 30148 0 568 136 0 82107

*wef April 2006 Moped tyre production included in Scooter Category TOTAL TUBE PRODUCTION IN INDIA (In 000
F.Y. 1997 - 98 T0 2010 - 11 CATEGORY Truck & Bus Passenger Car Jeep Light Comm. Veh. (L.C.V.) Tractor A.D.V. Scooter Nos.) 1997 - 98 6053 3518 1153 1422 1088 234 5369 1998 - 99 6781 3563 1133 1416 1221 295 6903 1999 - 2000 7382 3949 1046 1614 1259 268 5753 2000 - 01 7465 4322 939 1758 1108 259 5531 2001 - 02 7291 4277 972 1853 925 216 5122

Motor Cycle Moped Industrial O.T.R. Aero TOTAL

5272 204 42 8 0 24817

6507 224 29 9 0 28081

7771 564 33 12 0 29651

9772 223 48 9 0 31434

11372 151 61 13 0 32235

CATEGORY Truck & Bus Passenger Car Jeep Light Comm. Veh. (L.C.V.) Tractor A.D.V. Scooter Motor Cycle Moped Industrial O.T.R. Aero TOTAL

2004 - 05 9439 5947 1040 3100 1053 140 6439 18671 347 71 26 0 46273

2005 - 06 10522 6990 1066 3775 1232 165 7044 22263 227 99 38 0 53421

2006 - 07 11257 8509 1132 4156 1425 213 7461 28067 0* 108 48 0 62376

2007 - 08 12016 11490 1416 4147 1443 181 9128 30817 0* 112 60 0 70810

2008 - 09 11911 10773 1411 4213 1334 184 8242 31526 0 79 60 0 69733

2002 - 03 9863 8544 1384 2844 1125 825 470 456 9875 15654 185 309 51 0 515585

2003 - 04 10821 9959 1440 3271 1148 842 415 295 9274 16688 168 295 74 0 54690

2009 - 10 14811

2010 - 11

20047 1402 5739 2386 1634 903 294 13558 35664 0 538 161 0 97137

15668 26201 1500 6029 2595 1777 1051 311 20140 43118 0 616 191 0 119197

2002 - 03 7982 4762 1038 2147 835 231 5750

2003 - 04 8851 5331 1056 2633 907 187 5624

13978 176 65 15 0 36979

15415 270 50 19 0 40342

2009 - 10

2010 - 11

14142 9922 1430 4912 1970 235 11610 37095 0 64 68 0 81448

14990 9127 1746 5232 2006 198 16321 43156 0 74 97 0 92947

Categorywise Tyre Production in India Financial Year 2010-11 - 2011-12 ( April-September)

(In Lakh Nos.)
Tyres for: Truck & Bus Passenger Car Jeep Light Commercial Vehicle Tractor Front Tractor Rear Tractor Trailer Animal Drawn Vehicle Scooter / Moped Motor Cycle Industrial Off the Road (OTR) Total 2010-11 2011-12 % Change

76.08 124.46 7.63 28.4 13.88 9.18 4.64 1.3 91.61 209.91 3 0.91 572

77.99 134.19 7.47 34 14.19 9.73 4.6 1.31 109.8 229.31 3.36 0.98 626.93

3 7 -2 20 2 6 -1 1 20 9 12 8 10

Categorywise Export of Tyres Financial Year 2010-11 - 2011-12 ( April-September)

(in Nos.)
Category Truck & Bus Passenger Car Jeep Light Commercial Vehicle Tractor Front Tractor Rear Tractor Trailer Motor Cycle Scooter(2/3 wheeler) Implements Industrial 2010-11 2011-12 % Change

875496 1107857 521491 731674 43857 41267 646955 836916 4119 7598 17349 14096 850 898 370622 419037 279909 402037 47607 62133 54903 52785

27 40 -6 29 84 -19 6 13 44 31 -4

OTR Total

56483 109876 2919641 3786174

95 30

Export Realisation/Value
Year 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Value (Rs./crores) 864 1190 1100 1250 1460 1834 2383

% Change 7 38 (-)8 14 17 26 29

CAGR 15%

2850 3100 3585 3625 2877

20 9 16 1

2009-10 2010-11*

Categorywise Tyre Exports -2003-04 to 2010-11

CATEGORY Truck & Bus Passenger Car Jeep Light Commercial Vehicle Tractor Front Tractor Rear Tractor Trailer Motor Cycle ADV Scooter Implements Industrial OTR Antique TOTAL

[ Nos.]
2003 - 04 223155 591494 220 962972 18990 89758 1448 47333 0 120725 6558 10702 21168 0 4102923 2004 - 05 2503956 1024561 391 1130908 18202 84684 3686 62710 0 202656 2096 9885 23375 0 5067038 2005 - 06 2408759 1052874 885 1390814 13408 98807 3833 84908 0 289984 2447 7303 33480 0 5387502 2006 - 07 2007 - 08 2008 - 09

2276049 966046 1420 1599230 11078 56186 8665 151677 0 320536 4045 11543 43085 0 5449560

2431545 1091715 7461 1621880 17072 66644 17468 322630 30 45338 5637 12777 45919 0 6094116

1933959 991558 10263 1630483 13051 46347 20067 453226 0 435778 9962 7605 36774 0 5589043

2009 - 10

2010 - 11

2052946 845688 6946 1465991 12052 46206 4692 362784 0 441965 15693 8002 35515 0 5298480

2008859 1116192 93356 1454027 10899 43472 1320 755892 0 627093 106430 124943 111902 0 6454385

Given below is the composition of raw-materials as a percentage (%) of Total Raw Material Cost: Natural Rubber Nylon Tyre Cord Fabric Carbon Black Rubber Chemicals Butyl Rubber PBR SBR Others 63% of total Natural Rubber consumption is by the Tyre Sector, balance by rubber based non-tyre industries. Total weight of raw-materials consumed by tyre industry 17.50 Lakh M.T. Total Cost of Raw Materials consumed by tyre industry Rs.21,000 Crores

Raw Material Availability

Production of Nylon Tyre Cord Fabric, Polybutadiene Rubber, Rubber Chemicals, Steel Tyre Cord, Polyester Tyre Tyre industry imports raw materials on account of the following factors:

No domestic Production of Butyl Rubber and Styrene Butadiene Rubber of tyre grades, i.e., 1502 and 1712 & EPD

b. business strategy to have multiple sources of supply.

Given below is the composition of raw-materials as a percentage (%) of Total Raw Material Cost: Natural Rubber Nylon Tyre Cord Fabric Carbon Black Rubber Chemicals Butyl Rubber PBR SBR Others 63% of total Natural Rubber consumption is by the Tyre Sector, balance by rubber based non-tyre industries. Total weight of raw-materials consumed by tyre industry 17.50 Lakh M.T. Total Cost of Raw Materials consumed by tyre industry Rs.21,000 Crores

Raw Material Availability

No domestic Production of Butyl Rubber and Styrene Butadiene Rubber of tyre grades, i.e., 1502 and 1712 & EPDM.

Production of Nylon Tyre Cord Fabric, Polybutadiene Rubber, Rubber Chemicals, Steel Tyre Cord, Polyester Tyre Cord insuffi Tyre industry imports raw materials on account of the following factors:

a. duty-free imports permitted against export of tyres;domestic demand not sufficient to meet complete requirement;technica b. business strategy to have multiple sources of supply.

44% 19% 12% 5% 4% 5% 5% 6%

1712 & EPDM.

yester Tyre Cord insufficient to meet domestic demand.

te requirement;technical and commercial considerations;

Consumption Pattern of Major Raw Materials(2010-11) (Est.)

(in Tonnes) Raw Materials Total Cons. Tyre Sector Cons. 63% 66% 85% Non Tyre Sector Cons. 37% 34% 12% -

Natural Rubber SBR PBR Carbon Black Nylon Tyre Cord Rubber Chemicals Steel Tyre Cord Butyl Rubber

944700 174855 125305 412640* 115000* 35000* 30000* 40000*

* ATMA Members only

Production, Consumption & Imports of Natural Rubber (in Tonnes) Year Production 749660 802625 406220 442921 Consumption Tyre Sector 2004-05 2005-06 54% 55%

2006-07
2007-08

852895
825345

462081
495577

56%
58%

2008-09

864500

508121

58%

2009-10

831400

576210

62%

2010-11

861950 597623

63%

Total Import 177637 115520* 45000* 46700* 58000* 20000* 20000* 40000*

Tyre Sector Imports 95% 100% -

Non Tyre Sector Imports 5% -

Consumption Non Tyre Sector 349170 358189 46% 45%

Total Cons.

Imports Total

755400 801110

68700 45285

358224
365878

44%
42%

820305
861455

89799
86394

363599

42%

871720

77616

354355

38%

930565

176756

350092

37%

947715

177637

Trade Policy - Tyres & Raw Materials All categories of new tyres can be exported freely. All categories of new tyres can be imported freely. No WTO Bound Rates for Tyres & Tubes. All raw materials required for the manufacture of tyres can be imported freely (OGL).

Normal rate of Basic Customs Duty (MFN) * Asian Pacific Trade Agreement (formerly known as Bangkok Agreement) * Indo Sri Lanka Free Trade Agreement * SAPTA ( SAARC Preferential Trading Agreement) * India Singapore Comprehensive Economic Cooperation Agreement (CECA) * India South Korea CEPA

For details please refers to Preferential Tariff Table for Tyres/ Raw-Materials of Tyre Industry (Ref. Section on RTAs Excise Duty: All categories of Tyres * When import from Bangladesh, Bhutain, Maldivies and Nepal. ** When import from Pakistan and Sri Lanka.

Trade Policy - Tyres & Raw Materials All categories of new tyres can be exported freely. All categories of new tyres can be imported freely. No WTO Bound Rates for Tyres & Tubes. All raw materials required for the manufacture of tyres can be imported freely (OGL).

Custom Duties : Tyres Normal rate of Basic Customs Duty (MFN) Preferential/ concessional Customs Duty under Trade Agreements * Asian Pacific Trade Agreement (formerly known as Bangkok Agreement) * Indo Sri Lanka Free Trade Agreement * SAPTA ( SAARC Preferential Trading Agreement) * India Singapore Comprehensive Economic Cooperation Agreement (CECA) * India South Korea CEPA * ASEAN FTA

For details please refers to Preferential Tariff Table for Tyres/ Raw-Materials of Tyre Industry (Ref. Section on RTAs) Excise Duty: All categories of Tyres * When import from Bangladesh, Bhutain, Maldivies and Nepal. ** When import from Pakistan and Sri Lanka.

10% 8.60% Nil Duty Nil Duty* 5%** Nil Duty (For Bias Tyres) No Concession 8%(passenger car, truck / bus and scooter / motercycle) 5% (other categories of tyres).

ion on RTAs)

10%

10

11

12

13

14

15

16

1. PRODUCT STANDARD BUREAU OF INDIAN STANDARDS (BIS) had decades back prescribed Standards for various categories o However, the Standards were voluntary in nature,SAFETY STANDARDfor tyre companies to take BIS certific 2. i.e., it was optional

In line with the Safety Standards for tyres in some of the developed countries, Government of India deci formulate AUTOMOTIVE INDUSTRY STANDARDS (AIS) which would be mandatory in nature.

Government of India also decided to merge AIS with BIS. Cuurently, there is a unified standard for tyre Commercial Vehicles (Bias and Radial), Passenger Cars/Jeeps (Bias and Radial) and Two-Three wheeler

The merged Standard, expected to be published in the near future for mandatory application, would be app all tyres produced domestically and imported. However, as exported tyres are subject to the standards of i

Tyre with Cotton (reinforcement) Carcass : In the starting phase of proper Bias or Cross ply tyre, cotton plies were used as main reinforcing material (end of 19th and early 20th Century). Cotton reinforcing material had inherent problems of low strength and high moisture regainer. Leading to large number of plies to get the requisite casing strength for the tyre weight of the tyre and poor heat dissipation. This, in turn, gave an adverse impact on Tyre weight and buck rendering poor performance. Tyre with Rayon (reinforcement) Carcass : With the development of viscose and rayon the strength of reinforcing material went up and found application in tyres in early 20th Century. Due to higher strength of rayon it was possible to reduce number of plies and weight of the tyre. Since less number of plies were needed to match cotton strength, concept of ply rating developed. It was also possible to have higher ply ratings now. Tyre with Nylon (reinforcement) Carcass : Persuent to development and introduction of Polymide (Nylon) the strength and flexing behavior of reinforcing materials improved substantially resulting in further reduction of number of plies, consequently the weight of the tyres. This development substantially improved the heat and impact resistance of the carcass leading to better tyre performance and higher durability. Nylon casing gave a boost to retreadability. Thus effective cost of the tyre in operation became much more economical. Development of Tyre Technology due to change in Reinforcing material is basically in the case of Cross Ply or Bias Tyres. Bias tyre has cotton, Rayon or Nylon Cords, bound as plies and each ply (i.e. Cords) cross each other at a definite angle anchoring at the bead. Radial (Construction) Tyre - Textile/Textile belt (Rayon/Nylon/Polyester) : Inspite of continuos development in Bias Tyre Technology, inherent problem of high heat development and poor life remains a continuos challenge. In early 1950s new concept of Tyre design was developed namely "RADIAL" wherein plies were made highly flexible by keeping the cords at 90 and in order to improve tyre life, inextensible (stiff) belts were placed on the top of the Carcass under the tread. This led to stiffer tread portion, leading to higher Tread life (Mileage) and much more comfortable ride due to flexible carcass. This was the beginning of Initially Radial tyres were introduced with Casing Plies as well as belt material of textiles. Continuos development in Radial Concept led to further improvements as explained below. Radial (Construction) Tyre - Textile/Steel belts : Once Steel Tyre cord got developed it found its immediate application in Belt material, keeping casing plies of Textile, to further improve durability. Radial (Construction) Tyre - Textile/Glass Fibre Belt : Similarly, development of glass fibre which is practically inextensible, led to application in passenger and Light Commercial Vehicle tyres with Textile Casing, providing corrosion free radial Tyre belt material. Low Aspect Ratio (Cross Ply or Bias) Tyre : A new concept of low aspect ratio (ratio between section height and section width) of the tyre in cross ply construction was introduced for higher speed and better performance. Tubeless Tyre (Cross Ply) :

Concept of tubeless tyre in cross ply construction wherein an inner liner compound based on chlorobutyl or Halo Butyl which is impermeable to gases, was introduced eliminating the usage of tubes. This concept could not find sustained application in India due to bad roads and poor handling/maintenance of Rims other than in OTR range. However, Tubeless tyres are produced for Export Market. Gradually this concept will become fully acceptable with the advent of new generation vehicles and improved service facilities. Radial (Construction) Tyre - Textile/Aramid Belt : Due to poor roads and inadequate vehicle maintenance, Steel belts had corrosion problem due to cuts and chips in the tread. This led to trials with Aramid belt (Textile material with very high strength and Low extensibility). However, this could not find any sustained use. Radial (Construction) Tyre - All Steel : In developed countries, Radial Truck/Bus tyres use steel wires in casing as well as in Belts to achieve the optimum advantage of radial construction. In India also this construction was tried since late 1970s by Indian Companies using tyres of collaborators. This could not succeed. Indian companies started experimentally since late 1980s (themselves or with collaborators) which continues and the product has found gradual entry into low load application. Tubeless Tyre - Radial Construction : As in the case of Bias Tyres, the concept of tubless tyre was extended to radial construction and introduced in later half of the century in Developed countries. A tubless tyre not only has tube eliminated but provides for smoother ride and vehicle handling. This is slowly entering into the Indian market with the advent of new generation vehicles. Low Aspect Ratio - Radial (Construction) Tyres : The concept of low aspect ratio tyre, after gaining the experience from cross ply construction, was introduced in Radial construction also. The present trend of tyre development for high speed tyre is being pursued in this direction. Tyres with aspect ratio upto 0.65 are being manufactured today enabling Indian Industry to adopt high speed rating e.g. 190 kmph, 210 kmph etc. High Performance Passenger Car Radial Tyre : High Performance Passenger Car radial tyres not only have very low aspect ratio (0.65 - 0.35) but also have substantial changes in construction. Very low aspect ratio enables use of large diameter wheels which, in turn, allows better stability at high speeds. The tyre contour is based on the cross section of a fully loaded tyre and this reduces the energy losses within the tyre and reduced dynamic fatigue. High performance Passenger tyres are made with speed rating upto ZR indicating speed capability in excess of 240 kmph. In India, this concept has not yet been found popular though customers are demanding tyres upto 220 kmph Run Flat (Puncture Proof) Tyre - New Concept : A new concept of run flat tyre (puncture proof) was introduced by Continental in early 1980s wherein the basic construction of the rim and bead was changed by which on loosing air the tyre tread sits on the rim thus enabling one to drive at a reasonable speed for a long distance till the flat tyre could be attended to. This revolutionises the OE need for a new vehicle as the Stepney tyre can also be dispensed off. However, there is very slow progress of this concept. This has not been tried in India so far. Fuel economy/low rolling resistance tyre - special compound :

Tremendous work is being carried out towards the development of tyres with modified special compounds, besides tyre construction aspect, to reduce rolling resistance thus gaining in fuel consumption. However, the ultimate advantage is obtained by Radial Construction which is gradually findig its well deserved place in Indian Industry. Green Tyre (Environment Friendly) : This is the latest development in Passenger Radial tyres. These tyres have a rolling resistance appreciably lower than normal tyres. These tyres have high proportion of non petroleum based material used in their construction and are called environment friendly or 'green tyres'. This concept is well perceived and will gradually find its application world over, including India.

1. PRODUCT STANDARD BUREAU OF INDIAN STANDARDS (BIS) had decades back prescribed Standards for various categories of tyres. However, the Standards were voluntary in nature,SAFETY STANDARDfor tyre companies to take BIS certification and 2. i.e., it was optional In line with the Safety Standards for tyres in some of the developed countries, Government of India decided to formulate AUTOMOTIVE INDUSTRY STANDARDS (AIS) which would be mandatory in nature. Government of India also decided to merge AIS with BIS. Cuurently, there is a unified standard for tyres of Commercial Vehicles (Bias and Radial), Passenger Cars/Jeeps (Bias and Radial) and Two-Three wheeler tyres. At The merged Standard, expected to be published in the near future for mandatory application, would be applicable to all tyres produced domestically and imported. However, as exported tyres are subject to the standards of importing