According to foreign media reports, for the Indian tire manufacturers, the market of Chinese imports of tires always make it feel more pressure, suffering. Recently, due to India's cash-based tires, China's imports of tires in India suffered heavy losses, since November 2016, trading volume plummeted, this is because the Indian government to "abolish the currency circulation (referred to as: waste) Measures caused.
Speaking of India's "coin" incident, you have to mention Indian Prime Minister Modi. He suddenly announced on November 8 last year that India's face value of Rs 500 and Rs 1,000 rupees would flow out at midnight on the same day. In other words, starting from 9 November last year, 500 rupees and 1000 rupees of money is not money! Then the Indian Ministry of Finance said it would introduce new 500 and 2000 rupees face notes on November 10.
The actual maximum denomination will be only 100 rupees in the circulation of the Indian market, until the new 500 and 2000 rupees are widely recognized, which is about 10.2 yuan. The policy has had a huge impact on the daily lives of the Indian people, not to mention the tires in India.
"The sales of our company between December 2016 and January 2017 have been hit by the government," said Vikram Malhotra, director of marketing at JK Tire Markets. In the past three months, the market has seen almost no imported tires from China, but since February this year, China's tire products will once again enter the Indian market. "The industry said that despite the Earlier, China had adopted a price cut strategy for tires exported to India, but the recent sharp drop in tire trading in the Indian market has not been eased.
Satish Sharma, president of Apollo Tires Asia, Middle East and Africa, said: "The Indian government's abolition of the old currency, the Chinese tire products in the Indian market, the strong trend was curbed, because India (December), China's tires fell by 50% in India from December 2016 to January 2017. But since February this year, China's tires have fallen by as much as 50% in December, but since February 2017, there was still a lot of tax evasion (VAT) , China 's imports of tires will once again enter the Indian market, trading volume will grow, the operation of both sides of the transaction will be more standardized.
Global rubber prices are climbing, making the price difference between tire products become smaller and smaller. "Prices for Chinese tires have risen by 10 percent," said Sharma, "rising raw material prices on Indian and foreign manufacturers." For tire manufacturers in India, China's tire costs are rising and competitiveness seems to be their only comfort. We will continue to focus on the trend of Chinese tires in India.