[GTO]

Source & Full Article

Korean and Chinese brands imported into India are under the lens of Indian tax authorities for evading customs duty through under invoicing. For past two months the Directorate of Revenue Intelligence (DRI) have raided distributors of Nexen, Nankang and Kenda unearthing massive amount of tax evasion. Apart from these brands, other Chinese brands are also under the lens of the tax man.

Since most of the distributors have stopped imports of Chinese tyres because of the raids by Indian tax authorities, this has led to the depletion of stocks for Chinese tyre brands.

[aargee]

I'm wondering what happened to the law on ISI marked tire being imported into India; until 2012 March I know for sure this was followed stringent & we had a serious trouble getting even the genuine Michelin & Bridgestone & that is when we were seriously running short of tires. Is that law still being followed or not followed?

[itwasntme]

Very believable allegations. Kendas have been selling at ridiculous rates upto 30% cheaper, especially online.

Even if one factors in the lower cost of production plus volumes of sales, it still didn't make economic sense. This news could well explain the difference.

[sagarpadaki]

Good , at least this will deter cabbies from buying these cheapo tyres and putting lives at risk! I have seen tyres belong to some god-knows-which brands on Taveras and Sumos and Indicabs

[SmartCat]

Any idea how "under-invoicing" works?

If the invoice amount is low, the Indian importer can pay only that amount to the Chinese company. How is the rest of the money transferred to the exporter? Hawala route?

[Nikhilb2008]

This truly signifies everything wrong with the Indian system.

Instead of actually ensuring that Indian lives are not risked with these pathetic quality Chinese tyres, the government or bureaucrats blindly implement a rule saying all tyres imported have to have an ISI marking. What this does is it restricts quality tyres from world class brands like Michelin, Yokohama, Bridgestone, Continental, Pirelli, etc. It in no way tries to actually improve the quality of Chinese tyres.

The way the ISI mark rule has been implemented showcases the worst of Indian Bureaucracy. Take a couple of officers to the country where manufacturing happens, put them up in nice hotels, pay for their entertainment and BOOM! ISI marked tyres start rolling out immediately. No one gives a damn about the number of people dying in road accidents due to these crappy tyres. No one cares about the thousands of people crippled or maimed due to road accidents.

Absolutely pathetic and shameful way of doing business.


[RANT]
And there is another unintended consequence. Law abiding tyre showrooms are unable to sell quality high end 18", 19", 20", tyres simply because they are not available!! And car dealers make a killing by legally importing these tyres and pricing them twice or thrice the actual value.

Not just car dealers but even a few auto accessory shops do this and what costs $1128 for a set of tyres in the US becomes 2.4 lakhs in India! I've heard of an Audi R8 owner paying this exact amount for a set of tyres that initially cost about $ 1128 in the US. Shipped.

And most other small dealers have to tell the customer "Sorry sir, we cant supply those tyres for your Merc/Audi/BMW/JLR/Porsche because we dont get official supply".

[/RANT]

Sorry I got so carried away! But it's the truth. And no better place than TBHP to raise awareness about this.

[sagarpadaki]

Originally Posted by Nikhilb2008

This truly signifies everything wrong with the Indian system.

Instead of actually ensuring that Indian lives are not risked with these pathetic quality Chinese tyres, the government or bureaucrats blindly implement a rule saying all tyres imported have to have an ISI marking. What this does is it restricts quality tyres from world class brands like Michelin, Yokohama, Bridgestone, Continental, Pirelli, etc. It in no way tries to actually improve the quality of Chinese tyres.

The way the ISI mark rule has been implemented showcases the worst of Indian Bureaucracy. Take a couple of officers to the country where manufacturing happens, put them up in nice hotels, pay for their entertainment and BOOM! ISI marked tyres start rolling out immediately. No one gives a damn about the number of people dying in road accidents due to these crappy tyres. No one cares about the thousands of people crippled or maimed due to road accidents.

Absolutely pathetic and shameful way of doing business.


[RANT]
And there is another unintended consequence. Law abiding tyre showrooms are unable to sell quality high end 18", 19", 20", tyres simply because they are not available!! And car dealers make a killing by legally importing these tyres and pricing them twice or thrice the actual value.

Not just car dealers but even a few auto accessory shops do this and what costs $1128 for a set of tyres in the US becomes 2.4 lakhs in India! I've heard of an Audi R8 owner paying this exact amount for a set of tyres that initially cost about $ 1128 in the US. Shipped.

And most other small dealers have to tell the customer "Sorry sir, we cant supply those tyres for your Merc/Audi/BMW/JLR/Porsche because we dont get official supply".

[/RANT]

Sorry I got so carried away! But it's the truth. And no better place than TBHP to raise awareness about this.

Owners of those large rim wheels always have that headache when it comes to replace their car tyres. Makes better sense to import them directly from tyre rack. Will cost cheaper even after customs

[GurgaonTiger]

Originally Posted by sagarpadaki

Owners of those large rim wheels always have that headache when it comes to replace their car tyres. Makes better sense to import them directly from tyre rack. Will cost cheaper even after customs

You are correct but what about the warranty part if anything goes wrong with the tyre, we cannot ship it back for claims. I think its better to buy from a registered dealers who gives you the warranty back up.

[sagarpadaki]

Originally Posted by GurgaonTiger

You are correct but what about the warranty part if anything goes wrong with the tyre, we cannot ship it back for claims. I think its better to buy from a registered dealers who gives you the warranty back up.

Anyway warranty on tires is a dicey one. Most of the damage cases go uncovered under warranty