Like many other sectors, India’s tyre industry is undergoing a massive digital transformation. Companies like CEAT have been at the forefront of this shift, adopting state-of-the-art technology.

The company was recently included in the World Economic Forum’s Global Lighthouse Network due to its impactful digital transformation using Fourth Industrial Revolution (4IR) technology.

The leading tyre manufacturer has also planned to extend its technological advancements to its Nagpur plant. “CEAT’s vision for a smart factory dates back to 2015, when it commissioned its Nagpur plant. The groundwork, however, was laid earlier at Halol, where barcode tagging was introduced for traceability and error-proofing. While Nagpur became the first facility to implement a manufacturing execution system (MES), deeper analytics and machine learning capabilities were not yet in focus between 2015 and 2020,” revealed Jayasankar Kuruppal, Sr Vice President –Manufacturing, during an exclusive interview with Tyre Trends.

As Halol expanded and exports to Europe surged by the early 2020s, CEAT had to rethink its manufacturing strategy, shifting from a high-volume, low-variant model to a high-variant, low-volume approach. Once limited to 60-70 stock-keeping units (SKUs), the company's passenger car segment expanded nearly fivefold to meet European demand, requiring a complete overhaul of production workflows. 

At the same time, the adoption of silica-based compounds, which is critical for wet grip and rolling resistance, posed new challenges. These materials inherently increased cycle times, impacting capacity utilisation. While Halol was not initially designed for high-silica production, the company’s Chennai plant incorporated necessary corrections. However, tighter OEM specifications and European market requirements led to higher scrap and yield losses. 

Recognising the limitations of conventional manufacturing, CEAT turned to 4IR technology to optimise its processes. The 4IR technology refers to the advanced digital and automation-driven technologies transforming industries today. It builds on the Third Industrial Revolution by integrating AI, IoT, big data and robotics to enhance efficiency and decision-making.

“The digital transformation began at the Halol plant, expanded to Chennai and is now planned for Nagpur. Between 2020 and 2022, CEAT developed and deployed over 80 digital use cases, earning its first Lighthouse Factory designation. This data-driven manufacturing approach is now being systematically rolled out across its entire production network,” added Kuruppal.

Intelligent factories

4IR plays a crucial role in tyre manufacturing and recycling by enhancing predictive maintenance through IoT sensors, increasing energy efficiency via AI, production optimisations and advancing smart tyres with real-time monitoring.

On the other hand, an intelligent or smart factory in tyre manufacturing is defined by two core pillars, namely automation and digital intelligence. Traditionally, the tyre industry has been labour-intensive, but the shift towards smart factories is transforming operations through seamless machine-to-machine communication, real-time data sharing and AI-driven decision-making. 

The first layer of an intelligent factory is pure automation. This includes automated machines for tyre handling, programmable logic controllers for managing machine operations and automated warehousing systems to ensure smooth flow.

“For a plant to be truly smart, data must move seamlessly across all these systems, creating a connected ecosystem. This integration extends to ERP systems and advanced AI/ML-powered analytics, optimising throughput and efficiency,” said Kuruppal.   

The next stage is where operations run end-to-end with minimal human intervention. CEAT has already implemented elements of this, particularly through curing-to-dispatch automation, where tyres move untouched from uniformity testing to segregation, grading, storage, retrieval and final dispatch. It also has AI-driven IoT integrations that enhance energy efficiency, yield optimisation and first-time-right accuracy across all processes.

“The fusion of AI, IoT and automation is enabling tyre manufacturers to move from traditional manual-heavy processes to a digitally orchestrated, high-efficiency production model,” quipped Kuruppal.

CEAT’s production capacity spans multiple plants, each specialising in different tyre categories. The Chennai and Halol plants both produce 20,000 passenger car tyres daily. The Nagpur plant, India’s largest two-wheeler tyre manufacturing facility under one roof, with a capacity of close to 78,000 two-wheeler tyres daily.

Digital implementation

Curing operations in CEAT’s passenger car and truck tyre segments are almost entirely automated. While the curing medium remains unchanged, continuing with a combination of steam and nitrogen across Halol, Chennai and other facilities, the company is also exploring radical new processes, though still in the proof-of-concept stage. 

One key digital use case implemented in Chennai focused on reducing steam consumption through real-time process monitoring. Traditionally, mould heating followed fixed time cycles (e.g. 120 or 150 minutes). CEAT optimised heating based on actual temperature data, cutting steam consumption by almost 30 percent by integrating sensors and applying a machine-learning model.

The manufacturer has invested approximately INR 450-500 million in capital expenditure across its three factories to implement automation and digital transformation initiatives. On the operational expenditure side, CEAT spends INR 60-70 million annually on software licenses, infrastructure upgrades, sensors and scanners to sustain these smart factory systems.

Adopting smart manufacturing technologies has led to significant cost reductions for CEAT. Factory conversion costs at Chennai and Halol have decreased by 20-30 percent, driven by lower energy consumption, improved yield, higher manpower productivity and throughput enhancements.

Lead times from order placement to tyre dispatch have been cut by 50-55 percent, significantly improving supply chain efficiency. Additionally, material wastage has been reduced with process scrap, both component-level and finished product waste, dropping by 25-30 percent, resulting in substantial raw material savings.

Alluding to how difficult was it to implement such extensive digital changes, the executive explained, “From an infrastructure standpoint, Chennai had a clear advantage over Halol since the latter was commissioned in 2010 and 2015, when network and digital infrastructure were not as advanced. Unlike Chennai, Halol still does not have a fully integrated MES, making digital transformation more complex.”

“However, the approach to smart manufacturing differed at both plants. At Halol, the primary focus was on efficiency improvements. In contrast, Chennai underwent a more comprehensive transformation, covering the entire manufacturing chain from design and production to dispatch and supply chain optimisation. The goal at Chennai was to reduce overall turnaround time, significantly cutting the cycle from customer order receipt to final dispatch,” he added.

While Chennai benefited from a stronger digital foundation, CEAT did not merely replicate Halol’s use cases but developed new ones tailored to Chennai’s specific needs, further driving end-to-end operational efficiency.

Commenting on the challenges surrounding this paradigm shift, the executive noted, “Integrating legacy systems with Industry 4.0 technologies posed a significant challenge as ensuring compatibility between older manufacturing infrastructure and new automation, IoT and AI-driven solutions required meticulous planning and phased implementation.”

“Another critical hurdle was maintaining data quality and governance, necessitating robust validation processes, data lineage tracking and an accountability framework to enhance data integrity and reliability,” he added.

Answering whether such transformation is possible on OTR production lines, he said, “Unlike passenger or two-wheeler tyres, OTR tyres have a longer cycle time and high levels of customisation, making digital automation less complex but highly specific. While digital transformation is feasible, CEAT plans to prioritise full automation at Nagpur in the next 18–24 months, before shifting focus to digitalisation in OTR production.”

Workforce re-alignment

CEAT is reshaping its workforce strategy to align with its digital transformation, ensuring that shop floor employees are equipped and actively involved in adopting new technologies. 

It has digitised over 100 operator touchpoints to secure operator buy-in. The programme simplifies shop floor tasks through digital tools, MES integration and real-time dashboards, allowing operators to make decisions independently and reducing reliance on supervisors. Every operator has undergone basic digital awareness training to facilitate this transition. 

A key move was the introduction of business translators, who are frontline supervisors with strong technical acumen. They bridge shop floor pain points with digital solutions. Working alongside data engineers and scientists, these individuals co-develop AI-driven use cases, such as reducing setup time in mixing processes to improve efficiency. 

The company also strengthened its talent pipeline, hiring computer science graduates, a rarity in the tyre sector just a few years ago.  It has pioneered hiring female operators in the tyre industry, beginning in Halol in 2009.

“Today, 24–30 percent of shop floor employees in Chennai and Nagpur are women. While digitalisation isn’t the primary driver of this shift, automation has made traditionally labour-intensive jobs more accessible. The company also enforces pro-women policies, including home pick-ups and drop-offs, designated rest areas, female security and an internal support forum (V Power) to address workplace concerns,” informed Kuruppal.   

When asked whether digitisation will lead to a cut in vacancies, Kuruppal stated, “Contrary to fears that digitalisation reduces shop floor jobs, we find ourselves grappling with the bigger challenge of talent attraction. Post-pandemic, fewer young workers are willing to pursue manufacturing roles, with many opting for finance, retail and IT-driven careers instead. This trend is evident across major tyre-producing states like Tamil Nadu, Maharashtra and Gujarat.” 

“While automation and AI reduce physical strain and deskill certain operations, a fully manless tyre plant remains economically impractical in the near term. However, with rising labour costs and shrinking workforce interest, a fully automated future – perhaps within 15–20 years – isn’t off the table,” he added.

Sustainability through digitisation

CEAT is driving sustainability through digital transformation, reducing energy and water consumption while lowering its carbon footprint. Energy efficiency measures have led to a 15 percent reduction in power consumption at Halol and 25 percent at Chennai.

Renewable energy accounts for 40 percent of the company’s power mix, cutting Scope 1 and Scope 2 carbon emissions by nearly 30 percent. Water usage has been reduced by 30-35 percent over the past three years through steam optimisation, with future plans to eliminate steam in curing.

In green material adoption, integrating silica-based compounds in tyre manufacturing has required process adjustments as it increases cycle time. CEAT collaborates with equipment manufacturers to enhance efficiency. It has upgraded mixers to improve silica processing and support its shift towards sustainable materials.

Commenting on future plans to implement digital solutions, Kuruppal said, “We plan to integrate virtual and mixed reality into the manufacturing processes to enhance equipment maintenance and reduce mean time to service. We are also exploring AI-driven process optimisation, as these models will auto-correct processes in real-time, enhancing product consistency and accelerating decision-making. These technologies will also help identify and eliminate bottlenecks in manufacturing and planning, ensuring a more agile and efficient production flow.”

“The company is looking into GenAI to address complex operational challenges. AI-driven predictive maintenance will improve equipment reliability by forecasting potential failures before they occur. Additionally, GenAI will optimise supply chain and production planning, ensuring better resource allocation and efficiency,” he added.  

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Maxam Tire has broadened its range of solid skid steer tyres by launching the MS705 NM, a non-marking iteration of its current MS705 model. The new tyre targets construction machinery operated indoors or on surfaces where leaving marks is undesirable.

By pairing the resilience of a solid tyre with a non-marking tread compound, the MS705 NM suits jobs that demand protection for finished flooring and other delicate surfaces. Its solid design removes the risk of punctures and sidewall failures while also doing away with regular air pressure checks, which helps lower maintenance demands.

The tyre incorporates a three-stage, all-rubber build and an aperture sidewall that together produce a gentler ride. Steel ring reinforcement internally works to prevent wheel slip, while a heat-resistant cushion centre compound adds durability for tough applications. With this non-marking option, Maxam now gives customers greater flexibility in matching skid steer tyres to specific jobsite needs.

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Evonik, a global speciality chemicals company, has outlined a three-year strategy to sharpen its focus and accelerate growth, assigning distinct roles across its business portfolio and setting specific tasks for its major German sites. Targeted growth projects are also intended to improve the group's geostrategic balance. To fund these investments, the company is relying on its Evonik Tailor Made restructuring programme to further reduce its cost base. The plan involves cutting 3,200 jobs worldwide, with roughly 2,150 of those losses falling in Germany.

At the annual strategy meeting, the executive and supervisory boards reviewed plans through 2030. Interim CEO Claus Rettig said the industry faces a structural and economic crisis, and Evonik will use this polycrisis to reshape old structures and improve its positioning. Many parts of the business are still growing, so efforts will concentrate on strengths, future topics and lucrative markets, with better cost positions creating room to manoeuvre.

Transformation will proceed at every level. Healthcare and biotechnology projects in Canada and Slovakia, worth several hundred million euros, will strengthen the portfolio, while business units are aligned by role as growth drivers or cash generators. A new business line, Designed Polymer Solutions, bundles growth areas in aerospace, automotive and gas separation, including biogas and hydrogen. Asia and America offer strong opportunities, and further investments there are under review. Each of the six major German sites will receive a clear profile, with implementation starting shortly.

Evonik is also exiting activities with no internal prospects. Rettig said long-term leadership requires leading in what the company does, and volatility demands flexible responses. Closures of smaller sites fit this approach, and divestments of C4 chemicals and infrastructure are progressing as planned. Tailor Made's second phase begins in 2027 and runs to 2029. Measures will be finalised by late 2026, including unfilled vacancies, early retirements and voluntary severance departures. Chief Human Resources Officer Thomas Wessel said Evonik has long lived social responsibility and maintained intensive dialogue with employee representatives, and this transformation will be completed together.

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Continental recently showcased its new TerrainContact A/T2 tyre during a five-day driving event in Iceland, held from 14 to 18 September 2026. Journalists and invited customers tested the tyre across winding roads, rugged highlands, glaciers and volcanic terrain.

Starting at Þingvellir, the group travelled through Iceland's Western Highlands and the Kaldidalur valley, where gravel routes highlighted the tyre's blend of on-road comfort and off-road traction. The TerrainContact A/T2 targets pickup and SUV owners who mainly drive on pavement but require extra grip when conditions change.

Compared with its predecessor, the tyre offers better wet braking and snow traction while preserving a quiet ride and off-road ability. A new tread compound boosts wet performance, greater tread depth aids snow grip, and optimised zig-zag grooves and traction teeth add control on loose or snowy surfaces. It carries the Three-Peak Mountain Snowflake symbol and is engineered with electric vehicles in mind.

Okan Sen, National Marketing Manager, Continental Tire Canada, said, “The TerrainContact A/T2, as one of the best-balanced performance all-terrain tyres in the market, was developed for drivers who want the freedom to explore without compromising their everyday driving experience. Iceland was the perfect setting to bring that versatility to life, giving attendees the opportunity to experience the tire across the kind of changing terrain it was designed to handle.”

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A new Oxford Economics study commissioned by Tyres Europe underscores the tyre sector's vital economic and social contribution, arriving as Brussels shapes its Industrial Accelerator Act to reinforce European industrial competitiveness. The report, titled ‘The Critical Importance of the EU Tyre Industry’, makes the case that EU industrial policy ought to encompass the finished products sustaining Europe's economy and essential services, rather than focusing solely on raw materials and technologies.

Through the lens of tyres, the research maps the relationships between European manufacturing capacity, reliance on external sources and the smooth operation of mobility, freight and public services. It concludes that EU-produced tyres potentially enabled freight, agriculture and passenger transport, directly yielding EUR 1.5 trillion in GDP – 9 percent of the EU's total – and providing work for 30.5 million people, 13 percent of EU employment.

The study further reveals exposure on both sides of the tyre value chain. Imported intermediate inputs constitute 11.9 percent of EU tyre production value, exceeding the EU economy average of 7 percent, while natural rubber supplies depend wholly on imports. In 2024, imported tyres made up 40 percent of newly fitted tyres across the EU, a proportion that continues to climb.

Adam McCarthy, Secretary General, Tyres Europe, said, “Economic resilience depends not only on access to materials but also on retaining the capacity to transform them into safe, advanced products in Europe. The Industrial Accelerator Act is an opportunity to recognise strategically-important finished products and support competitive manufacturing in Europe. A strong EU tyre manufacturing base reduces reliance on external suppliers and helps build a more resilient, competitive automotive value chain.”

Pete Collings, Managing Director, Oxford Economics, said, “Europe’s tyre industry is far more than a manufacturing sector: it is a critical enabler of mobility, trade and wider economic activity. Our analysis shows that EU-produced tyres support hundreds of billions of euros in GDP and millions of jobs across key customer sectors, while the industry itself depends on complex global supply chains. The findings underline the economic value of maintaining a strong European tyre manufacturing base.”

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