India’s tyre industry is grappling with a severe shortage of natural rubber. The Automotive Tyre Manufacturers Association (ATMA) has raised concerns with the Rubber Board, highlighting the urgent need to address this issue to prevent production disruptions.
ATMA Director General Rajiv Budhraja stated, “The tyre industry has been experiencing tightness in domestic availability of natural rubber for some time.” ATMA represents 95% of India’s tyre industry, including major companies like Apollo Tyres, Bridgestone India, CEAT, Goodyear India, JK Tyres, and MRF. The automobile industry consumes about 70% of the natural rubber produced.
In 2023-24, India produced 8.5 lakh tonnes of natural rubber, while consumption reached 14.2 lakh tonnes. The Rubber Board reported that the average price of natural rubber in March was Rs 177 per kg. At the beginning of the financial year, India’s domestic stock was 3.7 lakh tonnes, down from 4.4 lakh tonnes the previous year.
Budhraja noted that despite high prices, the industry faces a severe raw material crunch. Some natural rubber producers and traders might be withholding stock, anticipating further price increases. To bridge the deficit, the industry relies on imports, which may arrive late, coinciding with peak domestic production.
In FY24, India imported 4.9 lakh tonnes of natural rubber, primarily from Indonesia (27%), Vietnam (25%), and Côte d’Ivoire (18%).
India’s tyre industry is among the largest globally, with annual production exceeding 200 million units across various categories. In response to Prime Minister Narendra Modi’s call to reduce rubber imports, four major tyre makers have committed Rs 1,100 crore for rubber plantations on 2 lakh hectares in the North Eastern states to boost domestic production.
