The commerce ministry has recommended extension of anti-dumping duty on aluminum alloy wheels from China, Korea and Thailand for another five years to guard domestic manufacturers from cheap imports.
Concluding its second sunset review of anti-dumping probe on imports of these wheels being exported by these nations, the ministry's investigation arm DGTR stated that there is a likelihood of dumping if the existing anti-dumping duties are allowed to cease.
The authority is of the view that continuation of the duty is required against all these countries on the tyres, used in motor vehicles, the Directorate General of Trade Remedies (DGTR) has said in a notification.
It has recommended "imposition of definitive anti-dumping duties on the imports of the subject goods (wheels), originating in or exported from China, Korea and Thailand for a period of five years".
The duty would be in the range of USD 0.08 per kg to USD 2.15 per kg.
The product continues to be imported at the dumped prices from these countries and the domestic industry has suffered continued injury on account of the dumped imports, the directorate said.
"The continued injury to the domestic industry on account of dumped imports is likely to continue if the anti-dumping duties from subject countries cease to exist," it added.
Imports of these tyres have increased from 15,878 tonnes in 2014-15 to 21,042 tonnes in 2017-18.
India is a huge market for passenger as well as commercial vehicles, which makes it attractive destination for global players to export automobile components, including tyres.
Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports.
As a counter measure, they impose duties under the multilateral regime of WTO.
The duty is aimed at ensuring fair trading practises and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.