The All India Tyres Federation has sought removal of anti-dumping duty on tyres and urged the government to lift import restrictions imposed after the Competition Commission of India's (CCI) order on domestic tyre manufacturers for indulging in price rigging and cartelisation. In August 2018, the CCI had imposed a total fine of more than Rs 1,788 crore on Apollo Tyres, MRF, CEAT, Birla Tyres, JK Tyre & Industries and the Automotive Tyre Manufacturers Association (ATMA). They were found to have violated Section 3 of the Competition Act during 2011-12.
The Section prohibits anti-competitive agreements. An appeal was filed against the CCI order before the Madras High Court and the same was dismissed on January 6, 2022. The CCI said the Supreme Court has dismissed a petition filed by tyre companies.
All India Tyre Dealers Federation President S P Singh said ‘On February 2, 2022, the CCI had passed a final order dated May 31, 2018, against five tyre companies...and their association, Automotive Tyre Manufacturers Association (ATMA), for indulging in cartelization.’ He stated 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.
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