📈 COPF Warns of Monopolistic Risks in Rushed Tyre Import Controls

• Key Highlights: Lawmakers in the Committee on Public Finance (COPF) raised concerns over potential duopolistic exploitation following Gazette No. 2508/27, which mandates SLS certification on imported car and three-wheeler tyres starting January 2027. • Domestic Sector Breakdown: Out of 18 registered tyre manufacturers, only 8 produce new pneumatic tyres, while 10 focus on retreading and rebuilding. Installed domestic capacity for car tyres stands at 2.398M units/year, with actual production reaching 1.259M in 2023 (+6.35% YoY to 1.339M in 2024). • Market & Competition Risks: COPF cautioned that lack of transparent firm-level market share data and state testing facilities risks creating artificial cartels and unfair windfalls for dominant players—drawing comparisons to past ceramic tile import restrictions. • Regulatory Directive: The Consumer Affairs Authority admitted to omitting a Herfindahl-Hirschman Index (HHI) concentration study prior to gazetting. COPF directed a joint report from the Ministry of Industry and CAA within two weeks on market competition and firm-by-firm output.