India's tyre production is likely to rise about 10% this fiscal year according to an Indian trade body.

Reuters reported that such an increase would nevertheless be below some forecasts, reflecting higher fuel costs and dumping by Chinese firms.

Domestic tyre firms will also remain under pressure in the short-term due to high rubber prices and cheap imports from China, Rajiv Budhraja, director general of the Automotive Tyre Manufacturers' Association (ATMA), told Reuters in an interview.

ATMA had earlier forecast growth this year to rise by 2-3 percentage points to about 12-13 percent, "but a steady, subdued growth is what we are feeling now," he said.

"Fuel price is going to be a major dampener," Budhraja said, referring to a hike in state-set retail fuel prices by 10 percent, the biggest increase in 12 years.

That will cause people to defer car purchases and reduce mileage he said.

In the year ending March 2008, India's tyre production stood at 81.1 million tyres, ATMA data showed. Two-wheeler tyres make almost half of the market in terms of number of units produced.