[JS Kwt]

EDIT - Thread heading changed due to updated information

Michelin India Suspends Passenger Car Tyre Sales Due To Import Restrictions


Only tyre sizes that are not made in India will be allowed to be imported as per the DGFT restriction.

The Indian government’s Directorate General of Foreign Trade (DGFT) moved tyres to the restricted category in June last year in a bid to prevent countries like China from dumping its excess output in our market.

As a consequence of the import restrictions, French tyre major Michelin has issued a circular to its Indian dealer partners confirming that it will not import and distribute passenger vehicle tyres in India.

DGFT’s move to restrict import of tyres have significantly reduced the choice the customers had and is likely to result in price hikes.

Source

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EDIT on 25th Jan 2021

Thanks to the Team-BHP fan (he prefers to remain anonymous) who sent this information in. Heartfelt gratitude for sharing it with other enthusiasts via this page!

Dear GTO,

This is with regard to the following thread - https://www.team-bhp.com/forum/tyre-...m-dealers.html

I’d like to provide generic non-confidential information with regard to this.

The new mechanism of import is like this -

1. A dealer applies for import to the govt with a size list, for example, like - 175/65R14 82T, 185/65R15 88H, etc.

2. Govt forwards this list to ATMA (Association of Tyre Manufacturers) who in turn forward this list to the person in charge in each member company to get the information whether they produce this size, and if not, how long it would take for them to produce it.

3. If any of the member companies say yes, the application for import is denied. If anyone says no but they plan to release this size in six months, import licence is granted for six months for that particular size.

This means that the popular Indian vehicle sizes for sure cannot be imported, like 195/55R16 87H or 215/60R16 95H.

Regarding the sizes for luxury vehicles, domestic manufacturers (JK, Apollo, MRF) would have the popular sizes for sure, like 225/50R17 (C Class) for example, but before this restriction, we would obviously only sell small numbers, which has now changed because of this rule.

Only the most rare and niche sizes which Indian companies didn’t bother investing in (because they wouldn’t sell many tyres) will be allowed to be imported.

In a nutshell, for the common sizes for regular vehicles, if BHPians want to go for a global brand, their only options would be Bridgestone and Goodyear as they are the only ones with large manufacturing capacity here. Yokohama also has a plant but I’m unaware to the extent to which they have ramped up production.

For the fancy and niche sizes (especially runflat tyres), dealers have no choice but to import as even Bridgestone and Goodyear don’t produce these sizes in India, and so BHPians will not face a big problem getting global brand tyres of these sizes.

[Nikhilb2008]

Guys, this is not the full picture.

Please dont go hyper over it.

Normal Michelin dealers wont be getting Michelin tyres. But premium dealers will get it from March end or April.

Limited numbers in 15 and 16 inches but good numbers in 17" and above. Supposedly, Michelin will be focusing on premium cars and sizes and they plan to introduce many new sizes in 17", 18" and above. They have asked me for my wishlist and I am in the process of giving them my wish list.

There are three tiers in Michelin for dealers. Basic dealers, then what they call Michelin Priority Partner(recently rebranded as "Michelin Tyres and Service" or MTS) and then the top of the line called Tyre Plus which has recently been rebranded to Michelin Tyres and Car Service (MTCS).

They also have aggressive plans for two wheeler BIAS tyres. But 2W Radial tyres will take time. Still no permission to import them.

Can a mod please sticky my post which is ACTUAL information rather than a WhatsApp forward taken out of context?

[JS Kwt]

Originally Posted by Nikhilb2008

Normal Michelin dealers wont be getting Michelin tyres. But premium dealers will get it from March end or April.

Limited numbers in 15 and 16 inches but good numbers in 17" and above.

Supposedly, Michelin will be focusing on premium cars and sizes and they plan to introduce many new sizes in 17", 18" and above.

Thanks for the quick update Nikhil

But as per your info, it seems there will be a shortage of Michelins for some time after stocks dwindle , and it will limit size availability and options.

For those planning to upgrade to Michelins, this would be a good time to quickly do it, before the stocks finish and prices hike.

[tazmaan]

I was under the impression Michelin had a factory in India for fast moving sizes like 14 and 15 inch.

[Sebring]

Thanks for the clarity. In 16, will 215/60 R16 be available please? I am willing to wait up. (Actually, 16 sits very close to premium. They should have it for the mini SUVs).

Originally Posted by Nikhilb2008

Limited numbers in 15 and 16 inches

[CrAzY dRiVeR]

Originally Posted by Nikhilb2008

Limited numbers in 15 and 16 inches but good numbers in 17" and above. Supposedly, Michelin will be focusing on premium cars and sizes and they plan to introduce many new sizes in 17", 18" and above.

Two queries, if you don't mind Nikhil -

1. If the issue is due to import restrictions - How will Michelin prioritize 17" and above which were mostly always imports anyway?

2. What share of volumes do these sizes constitute? Am I wrong to assume that a bulk majority of sales would have been from 15 and 16 inchers?

[itwasntme]

Originally Posted by Nikhilb2008

Guys, this is not the full picture.

Please dont go hyper over it.

Normal Michelin dealers wont be getting Michelin tyres. But premium dealers will get it from March end or April.

Can a mod please sticky my post which is ACTUAL information rather than a WhatsApp forward taken out of context?

Well, the letter itself doesn't seem to be fake although it's the usual corporate gobbledegook. Hope the supplies resume soon.

[saikarthik]

I am no expert on trade, but there are blanket ban and restrictions which mean different things. Can anyone shed some light on the said restriction?

1. Is the restriction indefinite or for a particular time?
2. Will the restriction limit the volume, import from particular countries or a blanket ban on import?
3. Is there any exemption?

If it is a volume restriction, then we can assume that Michelin can prioritize a particular size within the allowed volumes as they wish.

[MSC]

Apparently, the Michelin india website also is running a ticker informing shortage in supplies for some tire sizes but it doesn't mentions which ones.

[WasavaTyres]

Originally Posted by saikarthik

1. Is the restriction indefinite or for a particular time ?
2. Will the restriction limit the volume, import from particular countries or a blanket ban on import ?
3. Is there any exemption ?

If it is a volume restriction, then we can assume that Michelin can prioritize a particular size within the allowed volumes as they wish.

It is a blanket ban of sorts. Basically what the govt has said is this : If even a single manufacturer is producing a particular size - import is not permitted.

1. Looks here to stay.
2. There is no free run on import for certain odd sizes either. iirc 40% of last 4 years import qty per year is allowed for sizes not being manufactured in India ( Nikhil please correct me if I'm wrong)
3. Pirelli seems to have some sort of exemption as there are sizes that only they manufacture. Also, when ISI / BIS marking was mandated for imported tyres, Pirelli had secured BIS stamping for over 500 SKU's. But as of date, even they do not have rolling stock.

Yokohama & Bridgestone already had moulds for some sizes, but they were not being used as numbers weren't enough to warrant production. But now both these companies have planned production in India itself.

[Aditya]

Michelin has sent in a statement regarding this topic.

Statement

NEWS REPORT ON AVAILABILITY OF MICHELIN PASSENGER CAR TYRES IN INDIA

A CLARIFICATION / REJOINDER

Owing to the ongoing import restrictions for tyres we have experienced supply shortages recently.

For Michelin India, Government of India has recently issued a limited import license, which will also be utilized for importing passenger car tyres to address very high demand for our tyres in a restricted manner for the time being.

Consequently, to streamline our supply chain in the current situation, Michelin India has decided to prioritize selling of these limited stocks only through its priority partners currently, who has equally invested in expanding our distribution footprint in the country.

Michelin is committed to the Indian market and continues to significantly invest in Government of India’s ‘Make in India’ priorities through its Greenfield manufacturing plant for Truck and Bus radial Tyres in Chennai and a state of the art innovation hub in Pune.

We continue to work with Government of India to address this issue and are hopeful of an early resolution.

[Turbohead]

No mention of any plans to start manufacturing passenger car tires in India from both the press releases. I wonder why! I thought India had the potential for more growth since Michelin users are mostly repeat customers. We all love long lasting tires!

[ostreichwein]

I, for one, find these restrictions highly arbitrary and unnecessary. Forced regulations only hurt business sentiments and outlook of foreign businesses towards India. While I understand that there might be some amount of skepticism towards Chinese companies profiteering through dumping in India, but Michelin is headquartered in France and they produce in China, just as most international manufacturing companies!
We should focus on implementing business reform, on the basis of which Companies would suo motu shift their manufacturing to India, rather than employing these arm-twisting regulations.

Apologies for the slightly OT rant!

[tazmaan]

Its sad because I have Michelin LTX on my V-cross with no condition warranty. Tyres are just over a year old and 8000 kms. I fear if I damage a tyre now I will have to change all 4 to a new brand that's 60k + of damage. Or I will have 2 switch 2 tyres but I don't think I will be comfortable with 2 different brands on the V-cross.

That said I was in Dahej near Bharuch, Gujarat where the MRF factory is. The MRF factory is huge. ATC tyres (Yokohama) factory at Dahej is at its finishing stages (Again huge). Why did Michelin not start manufacturing in India. I am sure there is enough demand in India to run at least one plant. The days of one or two global factory/vendor are gone.

I am ok with a rule where imports of tyres which are manufactured in India (Size wise) is discouraged. But the implementation like other schemes is just pathetic.

MRF and other brands have upped the game and improving day by day. Once people move away and try other brands (due to unavailability), I am sure few will convert and Michelin will lose customers.

[Sebring]

Dumping means the tyres should be available cheap, right? But that's not the case. Michelins are at least 2K costlier, than comparable tyres, so I dont buy this theory

Originally Posted by ostreichwein

While I understand that there might be some amount of skepticism towards Chinese companies profiteering through dumping in India, but Michelin is headquartered in France and they produce in China, just as most international manufacturing companies