Business travel represents a substantial force in the global economy. Just before the Covid-19 pandemic hit, it contributed to more than USD 1.2 trillion, about 25 percent of the travel and tourism sector’s overall economic impact, to the global GDP. Businesses had resumed spending on travel after substantial declines in 2008 and 2009.

A research by Global Business Travel Association Foundation had found that for every one percent change in business travel spending, the US economy typically gains or loses 74,000 jobs, USD 5.5 billion in GDP, USD 3.3 billion in wages and USD 1.3 billion in taxes. The report also stated that personal vehicle (35 percent) was the most popular mode of transportation among US business travellers in 2016, followed by airplane (28 percent) and rental cars (13 percent).

Internal travel encompasses trips taken for intracompany purposes, where employees participate in activities such as training, team building or inspection of field operations. External travel, on the other hand, refers to travel done by employees for engagements outside the company, including in-person meetings with clients and suppliers, trade conferences and customer sales calls.

"Obstacles to business travel, such as cumbersome visa protocols and long flight connections, constrain access to knowhow and limit growth opportunities, especially in developing countries," said Frank Neffke, research director at Harvard Kennedy School’s Growth Lab.

Benefits Of Business Travel

In the past, companies have experienced that, on average, 40 percent of customers would eventually be lost without in-person meetings and support.

Detailed statistical modelling over 18 years and 14 industries indicates that for every dollar invested in business travel, US companies make a USD 9.50 return in terms of revenue. The modelling also found that US business travel has yielded USD 2.90 in profits for every dollar spent.

There is a small segment of employees for whom travel is deemed essential for conducting business. This category accounted for around 15 percent of all corporate travel expenses in 2019 and includes decision makers in manufacturing companies with a wide distribution of factories and plants, and field-operation workers. For some corporate travellers, it is possible to move oversight responsibility to local personnel and/or utilise digital medium. This segment will see their business travel decline. A large segment of business travel is done to cultivate new or important client relationships. This segment will bounce back as soon as Covid-related restrictions are lifted.

A tiny portion of business travel comes from the public sector, professional associations and nonprofits. During the pandemic, many professional associations were able to hold virtual events to replace in-person conferences and will likely be more cautious in their return to travel.

Business Travel Catches The Virus!

Business travel has taken a big hit during the Covid-19 pandemic and its future is still up-in-the-air, waiting for the end of the pandemic and firming up the ‘New Normal’. In 2020, total global business travel expenses contracted by 52 percent, while managed corporate-travel spending in the United States alone plummeted by USD 94 billion (71 percent).

The World Travel and Tourism Council’s (WTTC) latest annual research shows that the global travel and tourism sector suffered a loss of almost USD 4.5 trillion to reach USD 4.7 trillion in 2020, with its contribution to GDP dropping by a staggering 49.1 percent compared to 2019. In 2020, sixty-two million jobs were lost, representing a drop of 18.5 percent, leaving just 272 million employed across this sector globally, compared to 334 million in 2019. The threat of job losses persists as many jobs are currently supported by government retention schemes and reduced hours, which could be lost without a full recovery of the travel and tourism sector.

Some business travellers expect to take at least as many business trips in 2022 as they had in the year before the Covid-19 pandemic was declared. While teleconferencing will reduce the need for some business travel, many survey respondents cited the need to meet in-person to rekindle relationships with customers, suppliers and business partners. Another frequent reason cited for the need to travel for business was a job change.

The countries most eager to travel for business once Covid-19 travel restrictions are lifted seem to be China, US and Australia. Of course, the potential increase in Covid cases from the Delta and future variants of the virus may still cause further backsliding on rising confidence levels for resumption of business travel. (TT)

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India’s retreading industry closes 2025 on a turbulent note, shaped by volatile demand, uneven GST reforms, rising compliance costs and a partial enforcement of the Extended Producer Responsibility (EPR) regime.

The year began with optimism as pre-cured tread (PCT) sales moved up on the back of growing radialisation and sustained awareness initiatives, but that momentum faded mid-year as policy shifts and softer fleet sentiments weighed down volumes. Retreading companies say 2025 has been defined as much by regulatory shocks as by the struggle to recover pricing power in an increasingly competitive market.

According to Tyre Retreading and Education Association Chairman, Karun Sangi, overall retreading volumes declined through 2025, especially for businesses dependent on larger fleets. Fleet operators delayed retreading cycles as freight movement stayed inconsistent and as the widening GST gap altered cost economics.

Sangi explained that the GST cut on new tractor tyres from 28 percent to 18 percent dramatically changed fleet behaviour. “When the GST on new tractor tyres fell by 10 percentage points, it became easier and cheaper for fleet owners and small operators to opt for new tyres rather than retreading them. This has impacted retreading volumes significantly.”

Retreading GST remains at 18 percent, creating a distortion that disproportionately hurts small farmers and rural operators who traditionally preferred retreaded tyres for cost savings.

Sangi noted that radialisation in the truck and bus segment continued expanding, but many fleets still hesitate to pay for high-quality PCTR material. He stated, “There is a mindset shift that is still incomplete. Radial tyres require proper retreading practices and quality material to deliver full casing life. But many fleet owners still focus only on upfront cost.”

This behaviour forced retreaders to hold pricing steady even as raw material costs rose through the year. Smaller retreaders, lacking scale, were hit hardest, resulting in thinning margins across the industry.

Another major stressor was the implementation of the EPR framework for end-of-life tyres. According to Sangi, the EPR system, although essential for environmental compliance, has created bottlenecks for smaller players.

“EPR has made processes slower, approvals tighter and paperwork heavier. The industry agrees with the intent, but implementation needs streamlining, or SMEs will not survive,” he said.  

Retreaders who buy used casings from dealers or fleets now face documentation challenges and ambiguous compliance norms, particularly when handling multi-state movements of scrap tyres.

Sangi emphasised that retreaders have long been part of the circular economy and over-regulation could undermine a segment that inherently extends tyre life and reduces waste.

Treads in disarray

Echoing similar concerns, Kolkata-based Supreme Treads’ Director, Rajesh Verma, said that 2025 has been a difficult year marked by falling demand and rising input costs. He pointed to weak commercial vehicle movement, especially in the long-haul trucking segment, as a key factor.

“When truck utilisation drops, tyre wear drops. That automatically delays retreading cycles and that’s exactly what we saw in 2025,” he explained. Verma added that patchy freight during monsoons and the prolonged slowdown in construction activity further reduced tyre consumption.

Verma highlighted that customers also shifted back towards new tyres due to aggressive discounting by OEMs and Tier-II tyre brands. According to him, “We noticed that many smaller fleets were offered attractive upfront prices for new tyres, almost matching retread economics. For them, the choice became simpler.”

This price war undermined retreaders’ ability to raise rates despite increases in rubber, carbon black and labour costs. He reiterated that while overall radialisation is good for long-term industry health, retread quality across India remains inconsistent because of unorganised operators offering low-priced, low-quality jobs.

One of the leading tread makers of the country, Indag Rubber, echoed the same sentiment. The company’s Senior General Manager Rohit Kapoor said, “Since the start of CY2025, the industry witnessed an uptick in pre-cured tread demand, driven by greater customer awareness around the operational and environmental benefits of retreading. The rising commercial adoption of radial TBR tyres further encouraged fleet operators to opt for retreading as a way to extend tyre life and reduce running costs. However, the September GST reform proved to be a setback: while the tax on new tyres was reduced, the rate on retreaded tyres remained unchanged. This narrowed the price advantage and caused market volumes to fluctuate, although we expect a gradual recovery and steady growth in the coming year.”

He added, “The retreading sector had anticipated that the industry would be included in the GST revisions, given its role in circularity and resource efficiency. We have consistently engaged with policymakers to advocate for a lower tax rate on retreaded tyres and services, in line with global sustainability goals and waste-tyre regulations. Discussions with the authorities are ongoing, and while no formal roadmap has been communicated yet, we remain confident that the policy direction will eventually align with circular-economy principles and support tax rationalisation for retreading.”

2026 Outlook

Both Sangi and Verma agree that despite 2025’s setbacks, the long-term fundamentals of retreading remain strong because India’s expanding logistics and transportation ecosystem will continue to rely on cost-efficient tyre lifecycle management.

Sangi stressed that the industry needs GST rationalisation and smoother EPR processes. Verma added that technology adoption will be crucial for regaining customer trust and delivering consistent performance across applications.

As the year ends, the industry finds itself at an inflection point as the demand turbulence of 2025 exposed structural issues but also clarified what retreaders must prioritise in 2026 viz-a-viz quality, compliance readiness, customer education and tighter collaboration with fleet operators.

The segment has weathered a difficult year, but its intrinsic value proposition of extending tyre life at one-third the cost of a new tyre remains compelling. India’s push for sustainability and rising pressure on operating costs could well reposition retreading as a growth industry again, provided policy and market forces move in alignment.

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Tyres Europe has responded to the European Commission’s recently presented Automotive Simplification Package. While acknowledging the proposal as an initial positive step towards reducing regulatory complexity, the association identifies a significant omission: the failure to address the regulatory regime governing tyres. According to the association, tyres are a fundamental component influencing vehicle safety, energy efficiency, noise and emissions, making their inclusion in any regulatory simplification effort essential.

The association welcomes the Package’s move away from redundant laboratory testing, noting this sensible approach recognises that proliferating tests increases cost without necessarily improving environmental or safety outcomes. However, it argues this logic must be applied consistently across all vehicle components, including tyres. A specific and immediate opportunity for simplification is highlighted concerning the Implementing Act on In-Service Verification for heavy-duty vehicle emissions. The association points out that new original-equipment tyres used in this testing are already rigorously certified under separate, existing tyre legislation. The new act imposes stricter tolerances, creating a scenario where tyres fully compliant with their specific regulations could fail the in-service test. This constitutes a disproportionate double regulation that undermines legal certainty for manufacturers. The association contends that the objectives of in-service verification could be met more effectively through reinforced market surveillance instead of creating a parallel regulatory regime.

Looking forward, Tyres Europe calls for a coherent regulatory framework that properly acknowledges the tyre’s essential role. This framework should formally recognise tyres as core safety components, introduce new requirements with clarity and predictability, base decisions on reliable data and support innovation, circularity and European manufacturing. The association concludes that significant industry investment in safer and more sustainable products depends on regulatory confidence. For Europe to maintain a resilient and competitive automotive industry, tyre policy must be fully integrated into regulatory design, ensuring tyres are visible in policy discussions and recognised for their critical contribution to sustainable mobility.

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Doublestar Tire secured two major honours at the 2025 World Executive Summit in Hong Kong, an event organised by the World Brand Lab. The company was celebrated as the premier brand in its field, receiving the Chinese Brand of the Year award for the tyre category.

This accolade was complemented by a separate recognition, as Doublestar Tire was also ranked among China’s Top 10 Most Influential Brands for the same category in the 2025 edition of the annual listing.

These awards, announced during the summit, highlight the brand's leading reputation and substantial impact within the competitive Chinese market.

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The Yokohama Rubber Co., Ltd.'s global flagship ADVAN tyres are prominently featured in the latest high-octane instalment of the Gymkhana film series, ‘Gymkhana: Aussie Shred’. Released by Hoonigan Media Machine, the video rapidly surpassed 5.3 million views within its first week. This marks the third consecutive film in the popular stunt-driving series to showcase Yokohama’s tyre technology, following previous episodes released in 2020 and 2022 which have collectively amassed tens of millions of views online.

The film stars action sports icon and Yokohama brand ambassador Travis Pastrana, who performs a series of extreme manoeuvres across Australian terrain. His vehicle is a custom-built, 670-horsepower Subaru ‘Brataroo’, a modern re-engineering of a classic 1978 model specifically designed for Gymkhana stunts. Pastrana’s daring feats include high-speed drifts and a breathtaking 50-metre canyon jump, all captured in the new production.

Supporting these demanding performances, the Brataroo is equipped with Yokohama’s 18-inch ADVAN A052 street sports tyres and ADVAN APEX V601 high-performance tyres. Engineered to deliver an optimal blend of grip and structural integrity, these tyres provided critical stability across varied and punishing surfaces, from race circuits to loose gravel. This technological partnership enabled Pastrana to successfully execute the film's next-level stunts, demonstrating the ADVAN line's capabilities under extreme driving conditions and reinforcing Yokohama’s association with premier motorsport entertainment.

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