By Sharad Matade

TVS Eurogrip is geared up to lead customers into the future of riding, with its range of technologically advanced and high performance tyres, says V. Sivaramakrishnan, Chief Technology Officer

V. Sivaramakrishnan has been in the corporate sector for over 25 years. Currently he is the Chief Technology Officer at TVS Srichakra Limited, Madurai. He had earlier worked with JK Tyre and Continental Tyres. He was instrumental in leading the key strategic initiatives that has propelled the business to its new heights. His ability to lead the vision and execute it impeccably has helped the organisation grow globally. He spoke to Tyre Trends on the leading two-wheeler tyre maker’s future vision

Q: Last year TVS Srichakra launched the TVS Eurogrip brand. With this launch, the company is bringing out a completely new range targeting Y-Gen. Going forward, what will be the impact the millennial customers on the Indian two-wheeler tyre industry and the company. How do you see the tyre markets for lower CC bikes/ commuting bikes?

A: We believe that our brand is not just a logo, but represents who we are in terms of technology, quality and performance. We are a leader in the two-wheeler tyre space. In the last three decades since our inception, our brand has retained its core values of trust and reliability. Over the years, we have continuously evolved ourselves and our offerings by listening to the voice of the customer. Our most recent and extensive research shows a further evolution of the needs of our customers. The two-wheeler tyre space is seeing the rise of the consumer who looks for technology led products which help them outperform in multiple dimensions of life. The new age rider of today wants to live every moment to the fullest, impress his peers, and go beyond the normal. As our consumers are becoming more aspirational, we have designed our products to be the partner in their journey.

The brand idea of TVS Eurogrip - Outlive, Outperform and Outdo - is based on this insight. In anticipation of this changing tide, we are geared up to lead our customers into the future of riding, with our range of technologically advanced and high performance TVS Eurogrip tyres.

We are also going to launch a range of specialist products under the TVS Eurogrip brand. These tyres are: Designed and developed, not just for the Indian market but for the global market.

Tested extensively at our unique test track in Madurai as well as test tracks in Europe, by expert test riders from India, Japan and Europe

Manufactured at our state-of-the-art factories in Madurai and Pantnagar

Lower CC bikes for commuting will continue to remain the main segment in India. Over time, youth will be the dominant consumer base in the segment as well. Thus, it is imperative to meet their aspirational needs through innovative products, at competitive prices.

Q: The 2-W tyre market is already crowded and has stiff competition. How does the company plan to be the market leader in the segment?

A: We are a specialist in the two-wheeler tyres. The technology and expertise required in two wheelers is significantly different from four wheelers. This focus has made us one of the leading manufacturers across the globe for two-wheeler tyres. With the TVS Eurogrip brand we are looking to offer next generation products to our consumers.

Over the years, TVS Srichakra Limited has been expanding its footprint and outperforming itself by adopting cutting-edge technology driven by state-of-the-art research and development with experts in India and overseas. Under the TVS Eurogrip umbrella, we are going to launch a portfolio of 19 premium tyres that include industry leading zero-degree steel belted radial tyres. These extreme performance tyres will provide unmatched stability at high speeds and are rated to run at speeds up to 270kmph.

Q: Continuous Improvement in production efficiency is something the industry is talking about. What efforts are being taken in this direction for both of your plants?

A: We are the first tyre company in India to have achieved TPM excellence for our Manufacturing processes. We continue our efforts and have embarked on TQM journey. We have established state of art manufacturing facilities with modern mixing, calendaring plant and world class Radial tyre plant. Connected and Intelligent Manufacturing Systems are the future and we are not behind in this journey. We have commenced a project to implement Industry 4.0 concepts for our existing plants.

Q: How do you distinguish OE and aftermarket? What are your strategies to expand your share in the aftermarket, where price pressure is imminent?

A: Like our OEM business we are also witnessing superior growth in the aftermarket. We have a strong 2000 dealer network spread across the country which is assisting us in expanding our domestic presence. We are working to add new dealers and channel partners to maintain our growth in the aftermarket. Deeper penetration and reach have been our biggest strength and will continue to contribute to our strategy to tap the aftermarket.

Q: In OTR tyre segment, 90% of your business comes from export. What are the new trends you see in the segment? Any plans to focus on the domestic market?

A: We currently export to over 70 countries, including Europe. Our exports are largely Off-Highway tyres and we have gained expertise in making tyres of different sizes and quantities. We are also ensuring that cost of carrying inventory for the distributors is the lowest. We continue to seek opportunities in international markets and have invested in Technology and R&D to design and develop, not just for the Indian market but for the global market. This should significantly assist us in foraying further into the international markets.

Q: Safety is a crucial factor, especially in two-wheeler tyres. What technical and material developments are happening to improve the grip of two-wheeler tyres?        

A: Our research programs are focused on maximising vehicle handling performance and tyre grip on wet and dry surface. We have developed some of the finest materials applying nano science to enhance the grip properties. We have invested in a state-of-the-artstesting facility, which includes a modern test track in Madurai, home for our R&D Centre.

We have started a Technical Cetre in Milan, Italy where experts focus on research programs of high-performance tyres for India and global markets.  A host of new patterns are under development in this centre aimed at delivering high grip performance.

Q: We may see electrification in three-wheeler segment soon. How are you preparing yourself for this as you also produce three-wheeler tyres?

A: The advent of EVs does not do away with the need for tyres. Being a 2W and 3W tyre specialist, we are geared up for any advancement that is called for as the industry evolves. 

Q: What about production capacity, utilisation rate, and export volume? What are your expansion plans?

A: We produce about 34 million tyres per annum and have made significant investments to capture market opportunities. We will continue to invest in expansion of our capacities and capabilities in line with market dynamics, latest technology and our own growth aspirations. Currently the OEM business accounts for half of company’s sales volumes with aftermarket and export market contributing the other half for the company. We want to expand our reach i.e. enter newer markets and improve our volumes from the markets where we are currently present.

ENDS

Bridgestone Americas announced the launch of Firestone Direct mobile vehicle service for car owners and fleet operators. Firestone Direct brings Bridgestone’s automotive services directly to vehicle owners’ homes or workplaces to offer maximum convenience with safe, contact-free service.

This service uses specially equipped vans operated by certified technicians to perform a wide range of maintenance services, including fluid and filter changes, tire repair and replacement, battery check and replacement, and more. 

Through 2021, Firestone Direct will continue to grow into additional markets across the southeastern U.S., with plans to expand nationwide by 2023. The new service launched first in Nashville and Atlanta and expanded into Orlando and Tampa in March.

Angie Oleson, director of Firestone Direct, said, “Customers are increasingly turning to online shopping and at-home services for convenience and safety, and Firestone Direct is at the forefront of this movement for at-home car care. By bringing trusted vehicle care featuring the latest automotive technologies directly to the customer, Firestone Direct can leverage the expertise of our trained technicians with the ease of online booking and at-home service for maximum convenience.” (TT)

The global electric vehicle (EV) market has taken a tremendous leap forward, with new registrations reaching record market shares in nearly all countries. For the tyre development landscape, the accelerating growth of the EV market means a pervasive transformation.

Boosting circular economy

At Black Donuts, the impact of the EV trend can be seen everywhere, from the tyre designers’ desks to the new practices of tyre testing. Beyond meeting new demands of the EV sector, the procedures and practices are tuned to serve the company’s strategic goal: to spearhead the industry’s shift towards a circular economy.

Black Donuts launched the first EV tyre development projects with its tyre manufacturer customers in 2018. The internal research on EV tyres was initiated even before, at the time of the first EVs entering the market. “The first research project addressed the primary technological challenges: rolling resistance and noise,” says lkka Lehtoranta, Head of Tire and Material Development at Black Donuts.

In tyre design, it is essential to focus on specific aspects to ensure optimal performance for electric cars. Compared to combustion cars, tyres for Evs must carry a heavier load withstand high instant torque – and be efficient and quiet. 

Lately, the focus on tyre technology has shifted towards more comprehensive sustainability. Bio-based materials and compounds are opening new possibilities, and the rapid growth of the EV market accelerates the pace of development. ”The EV trend has highlighted the sustainability of tyres. The demand for bio-based materials and tyre recyclability has significantly increased,” says Jarkko Mällinen, Technology Development Manager of Black Donuts.

In cooperation with its partners, Black Donuts is investigating new possibilities to replace fossil-fuel-based raw materials with bio-based or renewable materials in all products, including studded tyres. The company is currently testing the use of bio-based plastics in stud bodies.

Also, end-of-life tyres are a hot topic in the industry, and Black Donuts is researching how the waste tyres can be recirculated and recycled back into the process. Even the tyre development process is undergoing a renaissance. New design tools for faster tyre development are being introduced, emphasising the key features of sustainable, future proof tyres.

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European PCLT (passenger car and light truck) tyre manufacturing capacity has risen over the past decade to meet increased demand, but there has been a major shift from plants in Western Europe, towards Central Europe and Russia. The move eastwards reflects substantial differences in operating costs between the two regions, specifically in terms of labour costs. Hourly labour rates in Central and Eastern Europe can typically be half to one quarter of those in the highest cost Western European countries. In particular this significant differential has resulted in the transfer of production of lower priced non-premium tyres to larger plants in Central and Eastern Europe. Numerous PCLT plant closures and downsizings in Western Europe have either been announced or enacted during the past 18 months.

In 2019 Cooper Tires ended PCLT tyre production at its small plant in the UK, and Michelin recently closed the PCLT tyre plant in Dundee that manufactured tier-1 brand tyres in lower rim-diameters (≤16”), a shrinking segment of the European market. These closures leave just the two PCLT tyre facilities operating in the country: the Pirelli plants that focus on low volume but high-margin premium tyres.

In Germany, Michelin has announced plans to close its Bamburg plant that also focused on lower-rim -diameter tyres, whilst Goodyear is restructuring operations at its PCLT tyre facilities located in Fulda and Hanau. Total capacity there will fall, but there will be an increase in production of premium tyres.

Pirelli has recently ceased production of car tyres at its Bollate plant in Italy, its only facility in Western or Central Europe that was manufacturing non-premium car tyres. Apollo Tyres plans to downsize PCLT capacity at its plant in the high-cost Netherlands, focusing the facility on high value tyres with short production runs. Management had stated that the company lost money on 70% of the PCLT tyres that it sold from the facility.

Despite these closures in Western Europe, expansion to the east is expected to result in the net addition of 30 million units of PCLT tyre capacity across Europe* by 2026. New plants that have been recently opened, or are currently under construction, are located in either central and eastern Europe or Russia. In 2017, Apollo Tyres opened a greenfield plant in Hungary, with first-phase capacity increasing to 5.5 million PCLT tyres and almost 0.7 million TBR tyres. Supply from the facility has substituted imports from India and now permits the planned downsizing and specialisation of production in the Netherlands.

In 2018, Hankook announced plans to add production of TBR tyres at its plant in Hungary, however this expansion was put on hold in late 2019. In phases, the company has already expanded PCLT tyre capacity until it is now one of the largest such facilities in the world. Meanwhile, Nexen has begun the ramp-up of capacity at its new plant in the Czech Republic; this will have added substantially to the country’s capacity by 2023.

In addition to further investments across Central and Eastern Europe by Continental Tire, Bridgestone and Pirelli, an expansion of premium tyre capacity in Slovenia has also been announced by Goodyear.

In mid-2019 Toyo Tire announced its intention to build a new tyre plant in Serbia, consolidating the country’s position as the leading location for new PCLT tyre manufacturing capacity in Europe. This follows Linglong’s decision to build its new European plant in the country and Cooper Tire’s plan to double the size of its facility. Based on analysis by Astutus Research of all announced capacity actions (plant opening and expansion net of closures and downsizing), Serbia will account for over 40% of planned capacity additions between 2019 and 2026.

Toyo expects to invest €390 million in its new facility that will have a capacity of 5 million units. It intends to start production in early 2022 and reach full capacity the following summer. Linglong’s facility will have a capacity of 12 million PCLT tyres, alongside truck and radial agricultural tyres, built in three phases and representing a total investment of over €800 million.

Serbia as new hub

Although there is demand for both replacement and original equipment PCLT tyres in Serbia, the domestic market is amongst the smallest in Europe and production will be export focused. The country has already emerged as a key source of budget tyres to the European Union and to Russia, predominantly from Tigar Tyre, Michelin’s low-cost tyre subsidiary, that has significantly increased capacity and production in the past decade.

Geographically, Serbia is well located to supply the major markets of the EU and Russia, and benefits from free trade agreements with both. Labour costs in the country are significantly lower than in the Czech Republic or Hungary, and labour availability is good, with a higher rate of unemployment.

At present Toyo imports tyres to Europe from its facilities in Japan and Malaysia; Linglong utilises its PCLT tyre plants in China and Thailand. Both companies aim to develop their presence in Europe, and local production should help them in this quest, particularly in the original equipment segment where the significantly shorter lead times will improve the competitiveness of their offer. Similarly, the opportunity to increase their share of the OE business was one of the motivations for Nexen and Apollo to replace imports to open a plant in the region.

Whilst the influence of the Covid-19 virus may slow the pace of some planned investment in central and eastern Europe, it has already accelerated the pace of closures in the west. Furthermore, we expect that it will result in further plant closures there, as the decline in European tyre demand dramatically reduces plant utilisation rates.

*Europe refers to Western, Central and Eastern Europe, including Russia and CIS, but excludes Turkey which we include in the Middle East & Africa region.

For capacity data: ‘Western Europe’ includes plants in Germany, France, Spain, Italy, the UK, Portugal, the Netherlands, Finland and Luxembourg. ‘Central Europe’ refers to Poland, Romania, Hungary, Czech Republic, Serbia, Slovakia and Slovenia. ‘Russia and CIS’ refers to Russia, Ukraine, Belarus and Uzbekistan.

• Simon Hodson is Research Director at Astutus Research shodson@astutusresearch.com

The WHO has said that the outbreak is now officially a Pandemic. People/ companies/ organisations are still coming to grips on how to address the situation. Government heads of various countries are trying to curb the situation by restricting entries of people who are affected by countries that are affected the most. Thus, airlines would have only diplomats and other certain levels of people allowed to fly.  Many airlines have suspended a good number of their flights.  Many companies will be looking to take a hair cut on what they take back with them, just to see that business can be sustained during the trying situations. 

The virus has led various markets to crash, courier services have been curtailed in certain countries. All types of cancellations, be it sport, expositions or business, have affected the business world over. The transaction value in the losses may be difficult to gauge currently, however, it could be in the millions. Contracts would have to be reworked, and companies may have to come with new strategies. 

However, in every situation, there would be also a business opportunity, if you work your strategy right. The sale of masks, gloves, hand sanitisers, medical devices would be able to generate good business. Though it is seen that the outbreak is from China, you also got to give to them as to how they are trying to contain the situation by building hospital/s within 10 days. In other countries, this would easily have taken a much longer time period. 

It is a given that the business scenario is not going to be the best for most of the companies; Therefore, companies may have to think and reevaluate the way they are currently running their company. Companies will look to get leaner in every possible way. Cut down on unwanted expenses. Many companies have started asking their employees to work from home. Some may look to have lesser number of people and look to automate some of the work, especially in the factories.  Commercial properties being an expensive asset to maintain, some companies may look to perhaps go on rented co working spaces. Use less of one time use items like plastic and use more renewable/ reusable substitutes. Use of more environment friendly methods going forward will be the mantra. 

This hit on our social system in a way will make us pause, think and have better suggestions as to how to look after ourselves and our environment at large.