As per information from Auto Component Manufactures Association (ACMA), auto component imports from China have gone up by 130 per cent in the last two years and now constitute more than 15 per cent of the total components from other countries - up from 1.5 per cent in 2003-04. Auto component imports from China were Rs. 2,200 crore in 2007-08. This is giving serious competition to domestic component firms as a number of Indian automakers like Tata Motors, TVS Motor Co., Bajaj Auto, Mahindra and Mahindra, Ashok Leyland, Ford Motor India are sourcing parts like electrical parts, engine valves, steering products, wheel rims, anti-radial tyres etc. Unsurprisingly, these products are dumped at a landed price of almost 15-30 less than the domestic companies.

The domestic tyre manufacturers are also immensely hamstrung by the 1300 per cent jump in tyre imports from China in the last five years. Automotive Tyre Manufacturers Association (ATMA), representative body of automotive tyre industry in India, has urged the government to impose anti-dumping duties on import of radial truck and bus tyres at the earliest. According to ATMA, truck/bus radial tyre import has gone up from 88,000 units in 2003-04, to 12 lakh in 2007-08, with almost 85 per cent of supplies coming from China. Almost 35 brands from China - like 'Jinyu', 'Double Coin' and 'West Lake' - sell in Indian market.

ATMA said most of the import is in the nature of dumping of tyres. "These tyres, imported mostly from China, are being sold at the retail level at a price almost 30 per cent cheaper than the Indian tyres," ATMA director general Rajiv Budhraja had said earlier.