West Asia tensions may disrupt India’s tyre exports, ATMA says

Summary

Rising geopolitical tensions in West Asia could disrupt India’s tyre exports and increase input and freight costs, according to the Automotive Tyre Manufacturers Association (ATMA).

NEW DELHI, March 13, 2026 — India’s tyre industry has warned that escalating tensions in West Asia may disrupt exports and raise production costs, urging policy support to maintain global competitiveness.

In representations to the Ministry of Commerce and Industry and the Ministry of Petroleum and Natural Gas, ATMA cited shipping disruptions and rising crude prices as key risks to manufacturers.

Export incentive concerns

The industry has sought restoration of full benefits under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP), after rates were reduced for several non-agricultural sectors in February.

ATMA Chairman Arun Mammen said higher freight costs and longer transit times have already affected margins on pre-negotiated contracts.

Fuel supply risks

ATMA has also requested that tyre manufacturing be treated as an essential sector under the Natural Gas (Supply Regulation) Order, 2026.

Currently, manufacturing units receive around 80% of typical gas supply, while priority sectors such as household PNG and transport CNG receive full allocation.

Industry representatives say interruptions in gas supply could affect production of key inputs including carbon black and synthetic rubber.

Market exposure and costs

India exports tyres worth roughly $250–260 million annually to West Asia, making the region a key market.

With petroleum derivatives accounting for about 60–70% of production costs, manufacturers remain sensitive to crude price volatility. Key inputs such as synthetic rubber, processing oils and nylon tyre cord fabrics have seen price increases in recent weeks.

Why this matters

• Export outlook: Supply disruptions could affect delivery schedules.
• Cost pressures: Raw material volatility may squeeze margins.
• Policy impact: Incentives and fuel allocation remain central concerns.

FAQs

Q1. Why is the tyre industry seeking essential status?

To secure uninterrupted gas supply for production during shortages.

Q2. What changed in export incentives?

RoDTEP benefits were reduced earlier this year for some sectors.

Q3. Why does crude oil matter for tyres?

Petroleum derivatives form a major share of tyre production costs.

Q4. Which routes face disruption?

Shipping challenges around West Asia have increased transit times and freight costs.

Q5. How important is West Asia as a market?

The region accounts for a significant share of India’s tyre exports annually.