India's tyre makers expect to achieve Rs 900 crore of tyre exports in the year ending March 2000, which would be 11.3 per cent higher than the previous year's exports. These figures were released at a meeting of the Automotive Tyre Manufacturers' Association in New Delhi on 24 June. The meeting was attended by representatives of all major tyre makers, including MRF, Apollo Tyres, Ceat and Goodyear.

The step-up in exports, if it materialises, will give some relief to the tyre industry, which has been affected by the slackening of domestic automotive sales in the past year. Raising exports will not be easy. The Indian tyre industry has been facing intense competition from producers in South-East Asian countries (earlier destinations of Indian tyre exports), which have gained an advantage because of the decline of that region's currencies in the past year.

The Indian industry had given itself an export target of Rs 900 crore in 1998-99 too, but could achieve only Rs 808 crore, over 10 per cent under target. This year, two neighbouring markets have become difficult.

The imposition of an ad valorem import duty on tyres by Bangladesh, has made it easier for cheaper Chinese tyres to make a dent in that market at the cost of Indian products. And the warlike situation over the line of control between Indian and Pakistani forces in Kashmir has put a big question mark over exports to Pakistan.

Not achieving the export target will mean producers will have to curtail production. The tyre makers want to avoid that.