Mumbai: Cheap tire imports continue to surge. In particular, China reported a 138% increase in sales of mid-day thread tires for cars and trucks in the first quarter, which could lead to a drop in sales for domestic tire makers.

Prices are said to be around 25% cheaper than domestic.

In the first quarter of this year, imports of tires for trucks, buses and two-wheelers grew by 25.3 per cent and 120.5 per cent year-on-year. India Ratings said in a report today that apart from the above factors, TB is particularly worrisome With the increase in revenue from the business, the business accounts for around 60% of the domestic tire industry’s revenue.

But that doesn’t mean you are likely to lose much revenue.

In the first quarter of this financial year, our TB industry revenue grew 138% year-on-year to Rs 230 crore, which now accounts for about 80% of the industry’s total revenue.

“Our analysis shows that TB radial imports grew by 80% to 300,000 units in the first quarter, accounting for about 22% of the annual domestic production. This could be due to increased imports from China.

According to the report, “Chinese imports will continue to increase due to declining demand in China and high countervailing and anti-dumping duties imposed by the US on Chinese tires.”

Imported TB radial tires are 25% cheaper than domestic tires. As a result of this trend, the radialization rate of TB radial tires reached about 33% in 2015, compared to only 26% in 2015.

Major domestic players have announced expansion of TBTB To cope with the increase in radial tire capacity, most of the capacity in the radial tire segment is likely to come online in the 2016-2017 fiscal. p The increase in imports is likely to hit substitutes in the transportation and beverage sectors, which are important markets for domestic companies.

Currently, Chinese TB radial tires are less cost-effective compared to domestic tires, with less acceptance by large fleet operators and automakers.

Although domestic tire companies score higher than Chinese tires in terms of branding, warranty, after-sales service, and distribution network, consumer preference for cheap Chinese tires continues to grow.

Domestic production of nodular tires in FY2015 was 1, 15 million tires, down 5.5% from last year.

According to India Ratings data, 20-30% of the revenues of best-in-class companies come from the TB segment. Domestic production of TB radial tires grew 31% in 2015, with the growth rate topping the major industrial sectors in the country.