The Indian tyre industry seems to be losing its grip in recent times because of an overall slow economic movement. The sector is directly influenced by the level of economic activity and the performance of the domestic automotive industry. The two major contributors to the sector are the car and two-wheeler manufacturers and the replacement market. A few more issues stare at the sector such as the flooding of Chinese imports into India because of the anti-dumping duty levied on Chinese tyres in the US. Adding to the manufacturers’ woes is the high import duties on raw material, which in some cases is more than the finished goods’ price.