Ace Tyres Ltd are into manufacturing tyres is a group company of Exel Rubber Ltd.
Tyre industry is facing another blow with increasing price of synthetic rubber which is following the price increase of crude oil. The country is already facing shortage of carbon black which is a key raw material. Currently, India imports more than half its requirement of synthetic rubber, which is a derivative of crude oil. While imported SR varieties have increased 20-25%, industry players said that local manufacturers were poised to raise prices. Then rubber industry uses styrene butadiene (SBR) and poly butadiene. Unlike in the case of bus and truck radial tyres, the percentage of synthetic rubber used is higher in passenger car radials for speed and performance.
India Tyre industry is seeking an increase in the customs duty on Tyres from 10 per cent to 20 per cent. They also urged the government to put imports of tyres under negative list in all trade agreements. The industry has demanded import duty hike on tyres to bring them at a par with natural rubber, the raw material, so as to provide a level-playing field to the domestic manufacturing. In its pre-budget submission, Automotive Tyre Manufacturers' Association (ATMA) has stated that the import duty on natural rubber (NR) currently is 20 per cent while tyres can be imported at a rate of 5 per cent or even nil rate of duty under various Trade Agreements. It said that under SAFTA, tyres can be brought in at 5 per cent duty from Pakistan and Sri Lanka. For other SAFTA countries there is nil d