Chinese tires come under scrutiny

Chinese tires come under scrutiny

JAKARTA (JP): The association of Indonesian tire producers has
called on the government to stop the import of automotive tires
from China, saying the low quality tires could endanger
motorists.

The association's chairman A. Aziz Pane said here on Wednesday
most of the Chinese tires which were sold here at prices between
30 percent and 40 percent lower than other tires did not meet the
national standards (SNI) set by the Ministry of Trade and
Industry.

"The quality of the Chinese tires is below our standards and
sales must be stopped to protect consumers," he said in a hearing
with the House of Representatives (DPR) Commission V, which is in
charge of trade and industrial affairs.

The use of low quality tires has contributed to the increase
in traffic accidents in the country, he said, adding that about
30 percent of the 4,300 traffic accidents which occurred last
year, were caused by defective tires.

Citing data issued by the directorate general of land
transportation, the vehicles, which were involved in the
accidents due to tire failure, mostly used Chinese tires.

Chinese tire importers were not available for comment.

Recently, Indonesian motorcycle assemblers accused their
Chinese rivals of conducting unfair business practices. The
Chinese motorbikes, which entered Indonesia only last year, are
well received in the local market. They are not only cheaper but
also trendy.

Azis said the demand for Chinese tires, which started to enter
Indonesia in 1999, continued to increase as many motorists were
no longer concerned about the quality and safety of the tires
they bought.

The prices of tires has more than tripled since the crisis hit
the country in late 1997. "This prompts motorists to buy cheap
tires although their quality does not meet required standards,"
he said.

According to him, the market share of the Chinese tires in the
country has reached 10 percent.

Total sales of Indonesia's car and motorcycle tire producers
reached 35.2 million units last year, up 12 percent from 31.4
million units in 1999, according to APBI's data.

Their local sales rose by 18 percent to 22.8 million from 19.3
million in 1999, while exports last year increased by 2 percent
to 12.3 million units from 12.1 million in 1999.

Azis said that Europe, the Middle East and Africa were among
the major buyers of Indonesia tires. (05)