The Competition Commission of India (CCI) visited offices of tyre makers Apollo, Continental and CEAT on March 30 in connection with an ongoing investigation.

This is the second such action taken by the competition watchdog in less than two months against the tyre makers who were earlier accused of cartelisation.

Shares of Apollo Tyres, India’s second largest tyre manufacturer, fell 2.6 per cent during the day on the BSE before closing 0.74 per cent down compared to March 29 close. CEAT shares fell 1.32 per cent during the day before closing 0.11 per cent higher.

“CCI officials visited CEAT office today for a routine enquiry. As a responsible corporate, we are cooperating with the authorities in the investigation. We categorically deny any wrong-doing in our conduct,” a CEAT spokesperson said.

While Delhi-based Apollo Tyres did not wish to comment on the development, a statement from Continental said, “Continental can confirm that officials have visited our office in Faridabad on 30th March, 2022, in an ongoing investigation. Continental is fully cooperating with the authorities. We are unable to provide any detailed comment as the matter is ongoing.”

Previous penalty

Earlier, the CCI had imposed a ₹1,788 crore fine on five tyre makers — Apollo, CEAT, Birla Tyres, MRF and JK Tyres — as well as their lobby body — the Automotive Tyre Manufacturers Association (ATMA).

The Commission imposed had penalties of ₹425.53 crore on Apollo Tyres, ₹622.09 crore on MRF, ₹252.16 crore on CEAT, ₹309.95 crore on JK Tyre and ₹178.33 crore on Birla Tyres, besides passing a cease-and-desist order. Additionally, a penalty of ₹8.4 lakh was imposed on ATMA.

The companies were accused of limiting and controlling production and supply in the replacement market and thereby contravening the provisions of sections of the Competition Act, 2002.

The Commission noted that the tyre manufacturers had exchanged price-sensitive data among themselves through ATMA and collectively decided on tyre prices.

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