Astute Analytica, a global analytics and advisory company, has said in its latest report that the Japan tyre market is projected to hit market valuation of USD 33.59 billion by 2032, up from USD 14.78 billion in 2023, at a CAGR of 9.74 percent by the year 2032.

The report delves deep into the macros of Japan tyre market and highlights various factors influencing the current condition and shaping the future scenario, including the top drivers of the market, the top trends emerging out of it and also the top challenges faced by the Japan tyre market.

As per the report, increasing vehicle ownership rates and urban car dependency are the major factors influencing the demand for more tyres. This is followed by government regulations promoting road safety and mandatory tyre checks and advancements in tyre technology. All of these factors are driving consistent tyre market demand growth. The report further explains the role of growing focus on sustainability in providing significant opportunities for tyre manufacturers to align their products with environmental goals, which is evident from the fact that a total 25 million eco-friendly tyres were sold in 2023. Citing that over 500,000 smart tyres were sold in 2023, the report highlights the role of digitalisation and smart technologies, as well as integration of IoT, in the automotive sector.

The top trends, according to the report, are rising adoption of environmentally-friendly tyres, growing popularity of smart and connected tyres with embedded sensors for real-time performance monitoring and a shift towards online tyre retailing platforms. Among the top challenges faced by the Japan tyre market, according to the report, are the fluctuating raw material costs, intense competition among domestic and international tyre manufacturers and the ageing population affecting vehicle ownership trends and reducing overall tyre demand growth potential.

The report further highlights the expanding role of recycled tyres in Japan's automotive industry – at a CAGR of 10.82 percent – and how they are shaping the tyre market. Japan has a robust infrastructure of over 1,000 tyre recycling facilities nationwide and repurposes approximately 80 million tyres each year, which is further boosting the recycled tyre market, the report says. The report further explains that over 50 million recycled tyres with extended lifespans were produced due to the innovations in devulcanisation and pyrolysis, adding that more than 500 patents were filed for tyre recycling innovations as of 2023. This is not only helping economically but also contributing to Japan's goal of reducing carbon emissions, thereby positioning Japan as a leader in environmental responsibility within the automotive sector.

Among its key findings, the report notes that passenger vehicles are at the forefront of Japan's tyre market and the sector is poised to take up over 63 percent market share. Annual sales of passenger vehicles have surpassed 5 million units, according to the report, resulting in more than 60 million passenger tyres sold annually. Other factors noted by the report are the proliferation of hybrid and electric vehicles in Japan, which number over 2 million, and the rise of ride-sharing services, which account for more than 1 million vehicles.

The report also highlights the rising prominence of the 15–20-inch tyre segment in Japan's tyre market because of the popularity of SUVs and larger passenger vehicles that use these tyres. More than 20 million units are sold annually for this specific size category, says the report and adds that the motorsports industry has also influenced consumer trends. Another factor influencing the popularity of 15–20-inch tyres is the governmental infrastructure projects that have expanded and improved the road network in Japan and made the roads suitable for vehicles equipped with larger tyres.

Another important point highlighted in the report is that the highly consolidated Japanese tyre market is captured by the top six established players, namely Bridgestone Corporation, Sumitomo Rubber Industries, Yokohama Tyre, Toyo Tyre, Michelin and The Goodyear Tyre & Rubber Company, who command over 72.9 percent of the market share as of 2023. Elucidating further on this topic, the report says that Bridgestone Corporation alone controls over 29 percent of the Japanese tyre market due to its longstanding presence and reputation for high-quality products. Factors such as high capital investment requirements for manufacturing facilities, extensive research and development for advanced tyre technologies and strict regulatory standards are cited by the report as major challenges for new entrants to penetrate this highly consolidated market. Apart from this, brand reliability and quality also favour domestic companies with proven track records, the report adds.

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The European Commission’s Industrial Action Plan for the automotive sector included plans to publish Guidance on in-vehicle data alongside the implementation of the Data Act. In response, the European Tyre and Rubber Manufacturers’ Association (ETRMA), alongside other automotive industry groups, has developed an Automotive Sector Interpretation Guide of the Data Act to foster a common understanding ahead of the regulation’s application. This joint effort has helped clarify critical definitions and regulatory interfaces while also incorporating essential tyre-specific considerations – a step ETRMA strongly supports.

Despite this progress, the Data Act’s objectives may fall short without additional measures. Key solutions – such as human-machine interface (HMI) access for user consent and digital ID federation to enable secure, efficient data sharing within a unified European data space – require further exploration under sector-specific regulation. ETRMA remains dedicated to ensuring the Data Act’s implementation promotes fair, non-discriminatory access to in-vehicle data. The association will continue pushing for enforceable rules that guarantee real-time, secure and efficient access to relevant data, safeguarding innovation and competitiveness in the automotive and tyre industries.

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Bridgestone India, a key subsidiary of the global Bridgestone Group and a leader in tyres and mobility solutions, has expanded its premium retail network with the launch of Bridgestone Select Store – M/s Nashik Tyres and Services. The store was inaugurated by Rajarshi Moitra from Bridgestone India, reinforcing the company’s commitment to delivering innovative, customer-centric tyre retail experiences across the country.

Strategically located in Nashik, the store features modern infrastructure and a premium service setup, positioning it as a one-stop destination for tyres and related services in the region. Recognising that tyres are the sole contact point between a vehicle and the road, Bridgestone emphasises safety, performance and driving confidence through its Select stores. These outlets not only help customers choose the right tyres but also enhance their ownership experience with expert guidance and high-quality services.

With over 900 Select stores nationwide, Bridgestone India has established a premium retail network that goes beyond tyre sales to offer a superior, service-driven experience. The expansion of M/s Nashik Tyres and Services further strengthens Bridgestone’s mission to bring world-class tyre solutions closer to customers, reinforcing its pan-India presence with a focus on innovation and customer satisfaction.

Moitra said, “At Bridgestone India, we are committed to redefining the tyre buying experience through our Select stores. As we continue to expand our footprint and enhance manufacturing capabilities our goal is to provide premium products, services and customer experience.”

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Leading global tyre manufacturer NEXEN TIRE has released its 2024/25 Sustainability Report, demonstrating its commitment to transparent ESG disclosure in line with international standards. This year’s report marks a milestone as it includes consolidated performance data from 10 global subsidiaries, enhancing the company’s enterprise-wide sustainability reporting.

In environmental sustainability, NEXEN TIRE has advanced its carbon management strategy by expanding greenhouse gas (GHG) emissions tracking. The company completed a third-party verified inventory covering Scope 1, 2 and all 15 Scope 3 categories, enabling precise identification of carbon hotspots and targeted reduction initiatives. Additionally, the company is accelerating the development of sustainable materials, evaluating 23 renewable and recycled options across 10 categories. Through proprietary technology, NEXEN TIRE now produces tyres containing up to 70 percent sustainable content. Biodiversity efforts have also intensified, with the company adopting TNFD and LEAP frameworks to assess nature-related risks. An ecological survey around its Changnyeong plant identified protected zones and endangered species habitats within a 50-kilometre radius.

On the social front, NEXEN TIRE celebrated a decade without workplace accidents, a result of proactive safety investments, including facility upgrades, risk assessments and 24-hour disaster monitoring. Enhanced fire prevention systems earned the company the Excellence Award at the 1st Safety Culture Innovation Awards.

In governance, NEXEN TIRE strengthened board diversity by appointing a new female independent director, with independent directors now comprising 62.5 percent of the board. The company also expanded its TISAX certification to eight sites, maintaining zero data breaches for three consecutive years. These efforts underscore NEXEN TIRE’s commitment to sustainable and responsible business practices.

John Bosco (Hyeon Suk) Kim, CEO, NEXEN TIRE, said, “As the industry undergoes rapid transformation driven by electrification, AI and sustainability, NEXEN TIRE is embracing ESG leadership as a core pillar of future competitiveness. Our commitment to responsible innovation and transparency will guide us through the next era of sustainable mobility.”

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Chinese tyre manufacturer Zhongce Rubber Group Co., Ltd (ZC Rubber) will inject 3.93 billion yuan ($541.3 million) of proceeds from its February initial public offering into wholly owned subsidiaries to fund expansion projects across its production network.

The company’s board approved the deployment of the raised capital through a combination of loans and equity injections to five subsidiaries, according to a regulatory filing. The move represents the full utilisation of net proceeds from ZC Rubber’s IPO, which raised 4.07 billion yuan through the issuance of 87.4 million A-shares at 46.50 yuan each.

Hangzhou Chaoyang Rubber Co Ltd, the group’s largest subsidiary by funding allocation, will receive up to 1.7 billion yuan in loan financing to support its high-performance radial tyre green 5G digital factory project. The facility represents ZC Rubber’s largest single investment among the five planned initiatives.

The company will also provide 850 million yuan to Zhongce Rubber (Tianjin) Co., Ltd. for upgrades in the high-end green tyre industry. At the same time, Zhongce Rubber (Thailand) Co., Ltd. will receive an equivalent amount through a direct capital injection to expand its radial tyre manufacturing capabilities.

Smaller allocations include 352.68 million yuan to Hangzhou Zhongce Qingquan Industrial Co., Ltd. for the production of all-steel radial truck tyres and 180 million yuan to Zhongce Rubber (Jiande) Co., Ltd. for the expansion of its workshop at the JianDe facility.

The funding deployment marks a revision to Zhongce’s original IPO prospectus, which had earmarked 4.85 billion yuan across the five projects. The company has adjusted its plans to align with the actual net proceeds available after deducting underwriting fees and other costs.

Interest rates on subsidiary loans will be benchmarked against comparable bank lending rates, with early repayment options available. The company stated that the funding structure would facilitate project execution while maintaining regulatory compliance through designated account supervision.

Zhongce received approval from China’s securities regulator for its IPO on 26 February, marking the completion of a listing process that positioned the company amongst China’s leading tyre manufacturers seeking to expand production capacity and technological capabilities.

The subsidiary funding initiative received backing from CITIC Securities, the company’s listing sponsor, and external auditors, with both parties indicating no objections to the proposed capital deployment structure.

ZC Rubber's shares have traded on the Shanghai Stock Exchange since its February debut, with the company targeting enhanced production efficiency and market positioning through its post-IPO investment programme.

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