Indian Tyres to Sport ISI Mark?

The Indian Ministry of Consumer affairs, Food & Public Distribution is considering branding automotive tyres with the “ISI” mark. The move is expected to be implemented from 1 April next year. While tyre manufacturers are reported to have welcomed this move, the Society of India Automobile Manufacturers Association (SIAM) has raised objections.

SIAM officials said that vehicles that are sold in India go through the homologation process, which also checks for the quality of tyres that are fitted on automobiles. “The homologation process ensures that the tyres that the used comply to safety standards. Branding with the ISI mark therefore is not necessary,” a SIAM official told the Business Standard Newspaper.

“This could lead to a problems like rigid pricing policy of tyre manufacturers,” said the SIAM official. Tyre manufacturers however said that the fear of a rigid price policy setting in due to the ISI branding is completely baseless. Industry sources also pointed out that the ISI branding of tyres was in force until three years back.

It is estimated that 15-17 per cent of the Indian tyre business comes from original equipment manufacturers and the rest from the replacement market. There is also strong demand (estimated at 20 per cent of the new tyre market) for retreaded tyres. The policy guidelines are yet to specify the safety standards that would be required of retreads.