MRF, JK and Birla Tyres accused of cartelisation by tyre dealers

Tyre manufacturers like MRF, JK and Birla Tyres have been taken to the Competiton Commission of India by tyre dealers who are charging them of cartelisation. The dealers claim that the pricing of tyres by the companies was "disproportionate and arbitrarily".

According to the report from ET, the Federation asserts that regardless of the acute decline in the prices of rubber which saw a drop of 15-17 per cent a year ago, domestic firms are carrying on with the high prices for tyres. Dealers are complaining that since the rates of all raw materials- natural rubber to synthetic rubber, have reduced for quite some time now, the government should have cut down on the prices of the tyres. 

SP Singh, Convenor of the Dealers' Federation, says that the prices of the tyres should have been rolled back with immediate effect but that didn’t happen. As a result there is a consumer apprehension that has been created. Customers think that the tyre dealers are nabbing the benefits by pricing tyres so high though the cost of raw materials has died down. He says the tyre manufacturers are all in all not lowering the costs of tyres.

Not just tyre dealers but also the ministry of corporate affairs is a petitioner in the matter. The notice for appearance in the hearing has been sent to both, the ministry of corporate affairs as well as the tyre dealers. We hope the prices of tyres are regulated in favour of the consumers when CCI will hear the matter on February 18.