I thought this one should be in Tyre Talk section?
You can check some of my posting over there. I have suggested other alternative brand for people asking for opinion on Neuton.
My friend's bad experience alone, this is not the first time I have seen such Neuton. Thanks God you're fine as its hard to imagine if this happened at very high speed.
Being a new tyre, it's look more like a manufacturer defect to me. Just look at the damaged line. Sharp object piercing does not cut this proper. Rim looks okay so acceptable driving speed when this occur (personal opinion unless the tyre shop arguments below apply ).
No warranty though as they will argue you driven the car on muddy road even though its just driven over a grass on the roadside during rainy day.
Other argument is prior to the damage, you may run that inner sidewall on potholes or rough side. Or suddenly swerve to the asphalt edge at high speed<<<Tyre shop's arguments point as usual.
I know most tyre shop will pump at least 240 or even 250kpa on new tyres. I usually pump higher kpa after run in period.

I don't have the exact localize statistic but even the tofu sidewall Forceum is more reliable than the low range Neuton. Forceum become bulging and
flex like hell but not exploding like your case.
We know what to expect from tyre shops. Reason why I only used cheap tyres which is proven to survive during drift abuse. Even then, its still down to luck
but lesser gamble on proven brand.

Not recommended as too many same case happened on Neuton. Nexen N8000 is okay but not the lower range.
For those really tight on budget, can consider the noisy Achilles ATR Sports instead. Make sure to check the inner sidewall more often after 30k km.

Yes. I have replied on those tread too. that is why I only suggest the N8000 as my personal experience on with it had been encouraging in term of reliability and price. Trashed many units of N8000 and it survived. I will stay away from the Nexen CP series which it shared with Roadstone though.
As for the Neuton, friends blow a couple of NT8000 on the run with severe damage on the rim . My only set of NT5000 had the sidewall wear out while the tread is still 80%. And I don't even use it for the touge.
Its still a mystery how the outside sidewall wear out on (-) setting with 34psi and very healthy fender clearance

Sifu has answered .
To clarify the theory, the whole tyre need to be inspected for many tiny horizontal or vertical lines formed in the process.
Ya, no point arguing, just ask the tyre shop to return the damaged tyres to main supplier for post mortem. Hopefully, able to claim warranty.
Eh, thank you for the good service. I always come to your shop discreetly. So far, one of the best around