Anti-dumping tyre norms?

17/05/2010 12:00 - 532 Views

Bureau of Indian Standards (BIS) has made some quality standards mandatory for imported tyres

MUMBAI: High grade, premium tyres are built for performance and speed. They also burn out faster, which means you have to replace them more often. Now, access to replacement premium tyres is going to get tougher in India.

Bureau of Indian Standards (BIS) has made some quality standards mandatory for imported tyres. This means stricter inspections of manufacturing facilities, stringent endurance and consistency tests, and tyres being marked with ISI stamps.

Analysts say the move is designed to block cheap goods being dumped in the Indian markets. Imported tyres constitute about 22 lakh units (2.2 million), whereas domestic production for the after-market is at 1.8 million tyres a year.

International tyre makers like Bridgestone and Michelin have not commented on the new norms so far.

Kolkta-based Dunlop says the move could lead to rise in prices. Pawan Ruia, chairman, Dunlop Tyres, said: "Prices could rise in the short-term, and some products may not be there. Basically, its a quality issue and a standardisation issue that is good for the consumer and the industry in the long-term..."

New standards go into effect on May 18. Its tricky for high-end tyre makers like Bridgestone and Michelin since their facilities are not yet up and running in India, and, therefore, canot be inspected.

Executives at high volume Indian players like MRF say the process isn't simple.

Importers are confused about how they are supposed to tackle the new standardisation norms.

While it is a good thing for the average customer, if you import premium tyres, getting them certified could turn out to be an added burden.

Pavan Lall, Bloomberg UTV
Published on Tue, May 11, 2010 at 19:47 IST

Source: www.bloombergutv.com
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