Tyre companies import rubber although sales are tepid

KOCHI: The festival season has failed to bring cheer to the tyre sector because vehicle sales continue to be on the downswing. The diesel price hike has been a dampener for the industry which has been trying to shake off the sluggish trends.

However, the big difference in global and domestic prices of rubber has prompted tyre makers to add to the inventory through imports.

Domestic rubber availability has improved in the last few days with tapping gaining momentum after the monsoon.

Rajiv Budhraja, director general of Automotive Tyre Manufacturers' Association, said the projected sales of the OEM segment of the medium and heavy commercial sector has been scaled down to 3-5% in October compared with 6-8% in July and 9-11% in April.