9JULY 2025INDIA'S TYRE EXPORT MARKET GROWS 9 PERCENT IN FY25 TO RS 25,051 CROREINDIA'S MANUFACTURING GROWS AS EXPORT DEMAND HITS NEW HIGHSIndia's manufacturing industry recorded good growth in June as the HSBC India Manufacturing Purchasing Managers' Index (PMI) rose to 58.4, a 14-month high from 57.6 during May. This healthier condition of the industry is well above its long-term average level of 54.1 and symbolizes firm momentum at the beginning of the new fiscal quarter.annual turnover and over Rs. 25,000 crore worth of exports, tyres are exceptional in their export-turnover ratio.Nearly 40 percent of the natural rubber (NR) demand of the tyre industry is met through imports these days due to low domestic supply. ATMA called for an imperative requirement of higher domestic NR production through certain policy interventions. "There is an urgent need to bridge the natural rubber gap to facilitate tyre production scaling up and export," ATMA Chairman Arun Mammen said.India supplies tyres to more than 170 nations, among which the US has 17 percent value market share of exports, followed by Germany (6 percent), Brazil (5 percent), UAE (4 percent), and France (4 percent). Farm and off-the-road (OTR) tyres dominate the segment-wise value of exports, collectively contributing to nearly 60 percent of the overall value.For augmenting local NR availability, the industry has initiated Project INROAD in association with the Rubber Board of India. With funding assistance from Rs. 1,100 crore offered by four of ATMA's prime members, the project is aimed at 2 lakh hectares of new plantations of NR, and there is additional assistance extended to infrastructure and vocational training.Mammen added that although these measures are welcome, much more remains to be done to achieve the approximated NR requirement of 20 lakh tonnes by 2030.Propelling the boom was a steep rise in new domestic and overseas orders, which sparked record job creation and output increase. Expansion in production picked up pace at the quickest rate since April 2024, supported by increasing sales, enhanced operation efficiency, and solid market demand.Export orders, in particular, experienced one of the fastest rises in over two decades as all consumer, intermediate, and investment goods categories posted large gains. To meet this heightened demand, companies stepped up input purchases, which led to a sharp rise in inventories.Since input prices were held in line, reaching a low since February, producers raised selling prices to protect against freight, labor, and metal cost pressures, riding along with friendly demand.Even with greater sales, inventories of finished goods dipped as companies tapped existing inventories to meet orders. Outstanding business volumes, which were unchanged in May, picked up the pace of growth in June.With the help of strong domestic demand, rising foreign orders, and managed inflationary pressure, the prospects for Indian manufacturing sector are bright. Industry experts project that the sector will see steady growth in the coming times. India's tyre exports registered a good 9 per cent year-on-year growth in FY25 at Rs. 25,051 crore amid indiscriminate global trade chaos and supply chain disruptions, the Automotive Tyre Manufacturers Association (ATMA) said. This is against Rs. 23,073 crore in the last fiscal, as per Ministry of Commerce figures.ATMA emphasized the fact that the tyre sector continues to demonstrate robust resilience in the aftermath of COVID and has remained a high-performing sector in Indian production. Having a rough estimate of Rs. 1 lakh crore · India's PMI hit a 14-month high of 58.4 in June.· A surge in new domestic and export orders drove growth.· Finished goods inventory fell as demand outpaced supply.
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