Tyre and tube imports could hit a speed-breaker and see a possible drop of about 40 per cent over the next three-four months.

This is because all tyres sold in the country after March 13 have to conform to quality standards prescribed by the Bureau of Indian Standards (BIS), as mandated by the Commerce Ministry.

With tyre demand peaking in the summer months, the new rules are expected to result in higher sales for domestic tyre-makers.

As each product from the different factories of tyre-makers is required to obtain an individual certification, about half of the approximately 100 factories that export to India are likely to be affected. The others have already been certified.

“Imports will be hit by 30-40 per cent for the next three-four months. Though this is good for the consumer, it will act as a non-tariff barrier for foreign tyre-makers. Those who have a long-term interest in the growing demand from India will surely apply for certification. Most such companies already meet the standards set by their own countries,” said Mr S. P. Singh, Convenor, All-India Tyre Dealers' Federation.

He added, “Quality certification can also be used as a marketing tool by companies, so it is beneficial for them to obtain it.”

Originally issued by the Ministry's Department of Industrial Policy and Promotion (DIPP) in November 2009, the notification had been extended two times. With the final notice coming last week, enforcing the original quality control order 2009, tyre dealers can only stock and sell tyres and tubes that are ISI marked on the sidewalls with certification from BIS. It covers all domestic tyre manufacturers, whether big or small, and imported brands sold in the Indian market.

>roudra.b@thindu.co.in

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