The All India Tyres Federation (AITDF) has requested the government to remove the import duty and anti-dumping duty on tyres.
Vide a letter to the Finance Minister and the Minister for Commerce and Industry, AITDF urged the government to remove the restrictions on the import of tyres imposed on 12 June 2020 and direct the anti-dumping authority, the finance ministry and the corporate affairs ministry to intervene to expedite the justice required by the hapless mass of tyre users in the country.
It may be recalled that on February 2, 2022, the Competition Commission of India (CCI) had passed a final order dated May 31, 2018, against five tyre companies - Apollo Tyres, MRF, CEAT, Birla Tyres, JK Tyre & Industries and the Automotive Tyre Manufacturers Association (ATMA), for indulging in cartelisation.
On August 31, 2018, the CCI had imposed a total fine of more than INR 1,788 crore on these tyre companies and the association.
The CCI’s August 2018 order had unequivocally found these five tyre manufacturers indulging in price rigging, and cartelisation leading to stifling and exploiting retail tyre trade and a huge mass of consumers.
According to a letter from S P Singh, Convenor, AITDF, the tyre makers acted “in concert to increase the prices of cross-ply/ bias tyres variants sold by each of them in the replacement market and to limit and control production and supply in the market, thereby contravening (certain) provisions of the Competition Act, 2002.”
Therefore, the manufacturers do not have any right to enjoy protection from the government by way of anti-dumping duty and restriction on import of various categories of tyres and tubes, which is prevailing now in the market.
AITDF has requested the government for an opportunity to explain the entire issue so that the domestic tyre industry is asked to roll back the unfair tyre price hikes and the government, on its part, takes all the measures to remove the restriction on the import of tyres.
NB: Photo is representational.