Archive · 28 Jan 2026
Tyre Industry Warns of Natural Rubber Shortage
The Indian tyre industry is worried because there isn't enough natural rubber available.
This is a big problem because tyres need natural rubber to be made.
The industry group ATMA says that even though it's the time of year when rubber supplies should be high, they are struggling to get enough.
Prices are also going up.
ATMA thinks there might be people hoarding rubber to sell it later for more money.
They also say the official numbers about how much rubber is being produced don't match what's actually happening.
The industry wants the government to let them import more rubber without paying extra taxes to make up for the shortage.
Tyre manufacturers are concerned about a tight supply of natural rubber, which could disrupt production.
ATMA highlights a mismatch between official production data and market realities, with estimates suggesting an 8% drop in production.
Prices of natural rubber are rising and nearing ₹200 per kg, with concerns over hoarding by vested interests.
Domestic production meets only 60% of India's natural rubber requirement, with nearly 2 lakh hectares of plantations untapped.
ATMA has urged the Rubber Board and the government to intervene, stabilize supplies, and allow duty-free imports to cover the shortfall.
- Who
- Automotive Tyre Manufacturers’ Association (ATMA) and tyre manufacturers in India
- What
- Concerns over tight natural rubber supply disrupting tyre production
- When
- January 27, 2026
- Where
- India
- Why
- Due to structural and market-related issues, climatic factors, and possible hoarding
- Industry Concern
- Tight natural rubber supply disrupting tyre production
- Production Impact
- Prolonged disruption could affect production schedules
- Price Increase
- Natural rubber prices nearing ₹200 per kg
- Production Discrepancy
- ATMA estimates 8% lower production vs Rubber Board's 5% increase
- Domestic Supply
- Domestic production meets only 60% of India's natural rubber requirement
- Untapped Plantations
- Nearly 2 lakh hectares of rubber plantations remain untapped
- ATMA's Request
- Duty-free imports to cover domestic shortfall