As of March 5, 2025, here are the latest developments in the Indian tyre industry relevant to tyre buyers:
Natural Rubber Shortage and Price Increases
The Indian tyre industry is currently facing a significant shortage of natural rubber, leading to increased raw material costs. The Automotive Tyre Manufacturers Association (ATMA) has raised concerns about potential production disruptions due to this shortage. In the fiscal year 2023-24, India produced 850,000 tonnes of natural rubber, while consumption reached 1.42 million tonnes, resulting in a substantial deficit. This supply-demand imbalance has driven domestic natural rubber prices to an average of ₹177 per kg in March. To mitigate the deficit, the industry has relied on imports, primarily from Indonesia (27%), Vietnam (25%), and 18% others. In response to these challenges, tyre manufacturers are contemplating price hikes to offset the rising costs.
Source:ATMA
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