India-UK FTA to boost competitiveness of local tyre makers in British market: ATMA

The competitiveness of Indian tyre manufacturers in the British market will be strengthened as a result of the removal of import duties under the India-UK free trade agreement, Automotive Tyre Manufacturers’ Association said on Tuesday.

Welcoming the Comprehensive Economic and Trade Agreement (CETA) between India and the UK, Automotive Tyre Manufacturers’ Association (ATMA) said the deal is a significant step forward in enhancing bilateral trade, particularly for the Indian tyre industry.

“The removal of import duties on tyres by the UK under the CETA will significantly strengthen the competitiveness of Indian tyre manufacturers in the British market,” ATMA Chairman Arun Mammen said.

He further said, “This will enable Indian tyre companies to build on the strong export momentum already seen over the past few years and further deepen our presence in developed markets.”

ATMA said under the India-UK CETA, all customs duties on tyres and rubber products exported from India to the UK have been eliminated with immediate effect.

Live Events

“This move is expected to provide a major fillip to Indian tyre exports to the UK – a key European market – by enhancing price competitiveness and improving market access,” it added. The tyre industry body said India exported tyres worth Rs 732 crore to the UK in FY2024-25, registering a year-on-year growth of 11 per cent from Rs 660 crore in FY2023-24. This follows a 10 per cent growth in the previous fiscal, when exports stood at Rs 602 crore in FY2022-23. With the elimination of duties, the industry expects this upward trajectory to continue and accelerate in the coming years, it added.

ATMA said the free trade agreement with the UK offers a cushion for the domestic industry through a staggered tariff liberalisation schedule.

Imports of major categories of tyres from the UK into India have been placed in the E10 staging category, meaning that import duties on these products will be gradually reduced over a ten-year period.

This phased approach balances export opportunities with a calibrated opening of the Indian market, it added.

“The dual framework of immediate export gains and gradual tariff relaxation on imports is well-balanced and in the interest of long-term industry sustainability,” Mammen said.

ATMA said the Indian tyre industry, which has already emerged as a significant exporter (exports over Rs 25,000 crore in FY2024-25) with strong manufacturing capabilities and R&D investment, stands to gain significantly under the CETA framework.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}