The Hindu Business Line : MMTC plans to import truck-bus tyres from China

Kolkata. Feb 25 Encouraged by the growing market share of imported tyres in India, the state-run trading major MMTC is planning to import truck-bus tyres from China in the next fiscal. The company is also exploring the possibility of import of raw materials for the domestic tyre companies.

MMTC may emerge as the first major trading house to import tyres. According to industry sources, India was importing close to 1.4 lakh truck-bus tyres every month through 35-odd smaller players. While the total import has doubled in the last one year, the share of radials has increased by three times to between 1.1 lakh and 1.2 lakh a month.

“We are seriously considering import of truck-bus tyres from China. However, given our scale of operations, we would like to ensure large volumes for entering the trade,” a MMTC official told Business Line, adding that the company was looking forward to grab at least 15-20 per cent share of truck-bus tyre imports.

The company plans to market the imported tyres both through the dealer network as well as directly to fleet owners, especially the State transport undertakings and major PSUs. Discussions are also under way with a number of Chinese producers and exports to identify the brands and products to be imported.

“We intend to offer a bouquet of brands ensuring consistent quality parameters in various price segments,” the source said. He, however, stressed that the company would take a call only after the Union Budget on February 29.

Confirming MMTC’s move, sources in the All-India Tyre Dealers’ Federation said that the trading major has already been in discussion with the dealers and may settle for an initial import quantity of between 10,000 and 15,000 tyres including both cross-ply and radial varieties.

“MMTCs entry will infuse the much needed competition and better trading practices in the tyre sector,” an AITDF official said.

Import of raw materials

Apart from import of tyres, MMTC is also exploring the option of import of raw materials such as natural and synthetic rubber, fabric, chord and others items for the domestic tyre industry.

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