The Hindu Business Line : Plea to cut tyre prices, removal of CVD on imports

Taking a cue from MRF's stand against the industry move on pricing, The All India Tyre Dealers Federation (AITDF) will meet the Union Commerce Minister, Mr Kamal Nath, tomorrow seeking 20 per cent reduction in tyre prices and abolition of 16 per cent countervailing duty on imports.

To prove their point that domestic tyre manufacturers are taking advantage of an oligopolistic market condition and resorting to arbitrary price increases, AITDF will site the example of MRF which did not join the rest of the industry (Apollo Tyre, JK Tyre, Ceat Tyre, Birla Tyre and Goodyear India) during the last eight per cent price rise in July when rubber prices were following a downtrend.

MRF vs Others

MRF has also clarified that fall in rubber prices by almost Rs 33 a kg does not justify price rise. The decision had actually put MRF face to face against other major manufacturers. While Apollo Tyres told Business Line that they were not considering any roll back in prices, according to AITDF, JK Tyres too refused to budge.

Relatively smaller manufacturers like Birla Tyres and Goodyear, however, have reportedly indicated to their dealer network that they would take a re-look at pricing issues later this month. "Since the rubber prices have dropped to January'06 level and crude oil price too has come down to $63.50 per barrel as against six months high of $75 per barrel, we want a roll back in tyre prices," an AITDF official said.

According to him, overall tyre prices have gone up by 20-33 per cent in four major between January and July this year. Except MRF all others revised prices on four occasions during the period.

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