Indian tire makers accused of inflating prices

Indian tire manufacturers raised prices amid import restrictions, causing a huge deficit in the country's market. This was announced last week by the spokesman for the All India Tire Dealers' Federation.

"Tire retail, as well as small fleets, taxi operators and ordinary drivers face challenges at a time when the economy is going through very difficult times," said the association's chairman, S.P. Singh (S.P. Singh).

In June this year, India's Ministry of Commerce, at the insistence of local manufacturers, restricted the import of tires for all types of vehicles. Imports accounted for about 3-5% of India's tire market, which plummeted 60-70% in the first quarter of the current fiscal year, April to June, due to the Covid-19 pandemic.

In fiscal 2019-20, the Indian tire industry posted a turnover of $ 8.2 billion. Due to the pandemic this fiscal year, the numbers will drop significantly to $ 7.4 million. By 2023-24, according to optimistic forecasts, the figures may rise to $ 10.6 billion.

Singh urged the government to review the restrictions on tire imports to maintain “fair play” and keep competition in the Indian market. He also asked the government to force domestic manufacturers to lower tire prices as they are overpriced.