​Major tyre stocks notched up losses of between 1.1-5%

Major tyre stocks notched up losses of between 1.1-5 percent on news that China, already dumping tyres in India, had devalued its currency, the Yuan, by 2 percent in a bid to make its exports more competitive in global markets.

Chinese companies are already dumping between 50-80,000 tyres each month into India. These tyres are about 20 percent cheaper compared with locally made Indian tyres. An estimate by the tyre industry body suggests that 1-in-4 truck tyres sold in India is made in China and 1-in-5 car tyres sold in India originates from across our northern neighbour.

And now with an even cheaper currency, things are turning from bad to worse for Indian tyre makers.

As a consequence, Modi Rubber plunged 5 percent to 34.30 rupees. JK Tyres lost 2.75 percent to 113.05 rupees. Goodyear fell 2.65 percent to 614.75 rupees. Ceat was down 2.4 percent to 994.60 rupees. MRF dropped 1.64 percent to 43,757 rupees and Apollo Tyres was down 1.2 percent to 206.60 rupees.

The United States recently imposed a 90 percent additional duty on Chinese tyre imports in a bid to save its domestic tyre makers.

Image credit: Indiatimes