India
TYRE MANUFACTURERS ARE ACTING LIKE A CARTEL
CONSUMERS DENIED BENEFITS OF PRICE FALL
2014-09-23 01:35
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For the owners and users of passenger vehicles, the relief in recent lower natural rubber prices on a sustained basis in the last six quarters has not led to any price cut in the retail replacement tyre market. This is so as the original tyre manufacturing industry comprising a handful of units across the country is unrelenting in their spree of periodic price hikes. When owning and using any mode of personal vehicle is no longer a luxury, the automotive manufacturers—the automotive and the tyre segments remain impervious to efficient and invisible market mechanisms with the latter more so as they willfully resort to collusive behavior to keep tyre prices high. They overtly avoid passing on the benefits they might get from the government in tax cuts or a fortuitous fall in input costs as in the case of tyre to the eventual users/buyers.