Earlier in April, 2014, India levied anti-dumping duty on imported ARW from China, Korea and Thailand for five years that was due to expire on April 10, 2019.

The government of India has extended anti-dumping duty on select four-wheeler aluminum alloy wheels from China, Korea RP, and Thailand for another five years to safeguard the interest of domestic manufacturers.

A Directorate General of Trade Remedies (DGTR) notification dated March 29 announced imposing of duty in the range of USD 0.08 to USD 2.15 per kg on imports of aluminum alloy road wheels (ARWs) of diameters ranging from 12 inches to 24 inches, being imported from the above mentioned three countries. 

"The authority recommends imposition of definitive anti-dumping duties on the import of the subject goods (ARW), originating in or exported from China PR, Korea RP and Thailand for a period of 5 years," the DGTR notification read. 

Total imports of ARW from these countries declined from 82.06 per cent during base year 2014-2015 to 61.65 per cent during period of investigation ( 1st April 2017 to 31st March 2018). This trend led to inking of the decision.

However, contrary to the above trend, imports from other countries have shot up to more than double from 17.94 per cent to 38.35 per cent during period of investigation, the notification observed. 

The extension of five years will give a chance to produce more locally.Satya Kacheria, CEO of Neo Wheels

Welcoming the extension, Ram Venkataramani, Automotive Component Manufacturers Association of India (ACMA) said "This move will encourage local manufacturing of the product and will help generate further employment apart from giving impetus to Make in India." 

Before imposition of anti-dumping, there were only 4 or 5 players in this space which has now increased to nine and many are lined up to join the industry, says Satya Kacheria, CEO of Neo Wheels, one of the supporting company of the review petition.

Talking about the upcoming massive opportunity in ARW space he added: “The demand of alloy wheels will see exponential growth in coming years because of new vehicle technologies. The extension of five years will give a chance to produce more locally, which will thereby open new avenues of investments and job creation in the sector.”
Industry sources suggest that as on date the Indian manufacturers have invested more than Rs 2,500 crore in this vertical in the last 4-5 years, providing employment to more than 6,000 people.

The announcement came following a petition filed by Synergies Castings and Kosei Minda Aluminum Company. These two companies constitute 40.29 per cent of the overall Indian production of alloy wheels. 

Earlier in April, 2014, the government levied anti-dumping duty on imported ARW from China, Korea and Thailand for five years that was due to expire on April 10, 2019.