Confusion infused by Covid in a Tapestry of ‘Rangoli’ Cowrie Shells

Confusion infused by Covid in a Tapestry of ‘Rangoli’ Cowrie Shells

First a dissection of the tyre market in four different sectors – one that was severely affected and three that have been the mainstay of resilience.

Cowrie Shells of Trade

Initially, Cowrie shells were used as currency for trading right after the barter age. Cowrie shells were/ are still used in astrology in many parts of Africa to predict the future. Four cowrie shells held in the hand, the astrologer would then shake the shells while clenching the fist and throw them to the ground. Depending on how many shells turned upside, the astrologer would then tell the future. In my case, three have turned upside and one facing down – an ominous sign.

(Cowrie Shell number 1) The Motorcycle  Market

Also known as ‘bodabodas’, motorcycles are divided into the mid-premium, premium and commuter motorcycles. The rise in numbers in pre-pandemic times and presently is because of their ability to move efficiently in urban and rural areas, especially where the road conditions are poor. 

 Between 2011 and 2019, the number of motorcycles grew 233 percent from 500,000 to 1.7 Million. The average annual demand for motorcycles is 200,000 units – a demand that is fuelled by a relatively affluent rural population with a drive for personal mobility (Source: Kenya Automotive Sector Profile – 60 years Anniversary edition). Motorcycle tyres sales have not lagged behind in the regard, with most of the imports coming from India and China. Often these tyres are not recyclable.

(Cowrie Shell number 2) Commercial Market Truck

The shift in rules and regulations surrounding travel has come with uncertainty and border closures that were aimed at stopping the spread of the disease. Closure of some truck tyre producing plants and ensuring that the overseas parent markets demands were met before exports meant that there was a shortage in this sector. The sector has been supported by the Light Commercial Vehicle tyres from the 7.00-16, 7.50R16, 9.5R17.5, 265/70R19.5 and, more recently, 255/70R22.5 (FI engines). These vehicles are not under the spotlight of weigh-bridge restrictions as compared to their bigger rig 22 and above wheeler cousins and hence have become a vehicle of choice of up-coming and existing transporters wanting to squeeze the payload shilling to a longer mile. Even in the absence of verifiable date or research papers, it is estimated that commercial driving has dropped by about 20 percent.

(Cowrie Shell number 3) Agricultural Tyres

The sector that continues on an upturn is one that continues to feed the millions of people every day. Even with a prediction of drought at the end of the year, tractors and farmers on the road continue to grind tyres to ensure that there are products from the farm to fork. The OEM/ replacement/aftermarket sectors are experiencing a rise in demand for efficient and productive agricultural machinery that is driving the agricultural tyre market. It is primarily the technological advancements and expanding population that are propelling the agricultural tyre market. Sameer Africa, the only agricultural tyre manufacturing concern in the country, closed its doors in 2019. While the overall scenario of the market is positive, the demand is hugely dependent on the economic turmoil in the region that invariably affects the farmers’ income and purchase of farm machinery. However, a downturn in farming equipment sales is expected to continue till 2022 as Covid-19 severely impacted the automotive industries.

Changing agricultural machinery design and increasing penetration into new unexplored terrain will require tyres that have stronger rubber compounds. Flotation, forestry, trailer and compound rubber tyres with steel flex wall are now trending in the local agricultural tyre market.

(Cowrie Shell number 4) Passenger and 4x4

Regarding the future impact of personal and business travel, Bill Gates recently noted that we can ask the question “Do I have to go there personally? ” and predicted 50 percent decline for the post Covid-19 world. In addition to that, walking, cycling and motorcycling have gained preference.

In addition to the specifics of the tyre market, various factors continue to plague the East African tyre industry, and they include:

•           Uncertainty that the virus will move into the winter months and the Delta variant. With less than 10 percent of the population now vaccinated in the East African region, it is difficult to say how the disease will pan out. What is certain is that the periods of confinement will continue deep into 2022 (an election year in Kenya).

•           At some point this year, freight costs rose by 300 percent. Tyre sellers had no option but to pass the cost to the consumer. Supply chain disruptions are here to stay mainly because Kenya will be having the general elections next year. Tanzania and Uganda have already had theirs. In such times, many investors hold back on the resources waiting for regime change and the chaos that follow a general election.

Rangoli of Possibilities

Many years ago, I woke up every day to beautiful drawings made on the ground in front of a neighbour’s doorstep. Drawn by a young Indian girl, I later came to learn their meaning. Using multi-colored, ochre, dried rice sand, flour, rocks and petals, beautiful drawings were made on the doorstep as a part of an everyday Hindu household practice – even more so, during the important Hindu ceremonies such as Diwali, Pongal and Tihar (I would urge the reader to view some of these drawings on Google). The Rangoli represents happiness, positivity and liveliness of a household (nation) intended to welcome health and happiness. It is for this reason that I intend to paint here that African Tyre Market Rangoli during this very trying Covid times mostly for therapeutic purposes. 

It is in these Rangolis of possibilities that I would like to offer my predictions and possible solutions:

Prediction no. 1

In East Africa, future urban mobility will not rely on individual car traffic regardless of the propulsion system. The pandemic will cause urban planners to re-think the transport framework policy. Policy makers will nurture the momentum gained to further transform the traffic landscape towards environmentally friendly towns and cities.

Prediction no. 2

In the midst of dwindling and scarce resources, the one that remains unlimited is ‘IDEAS’. E-commerce readiness will be vital in determining the survivability of a business during the Covid-19 pandemic. The level of readiness will determine their continuance and sustainability.

E-commerce readiness can be examined on the basis of Technological readiness / Organisational Readiness and Environmental Readiness. Challenges and constraints thrown our way, such as the Covid-19 proffers, only encourage a business to adopt e-commerce and take it to another level. (Ref. Journal of Asian Finance, Economics and Business)

Suggestions on how to weather the storm

In order to strive, thrive and stay ahead of the pandemic curve, businesses in East Africa have to adopt different business strategies:

•           Tyre business owners and managers must consider going against the previous market stock trends such as Just in Time Management. Maximise coverage, over-order on fast moving items, plan way ahead, order early, sell what your competition can offer you and pro-actively communicate with customers about impending shortage (being upfront and honest)

•           Being constantly in touch with suppliers, strategically allocate stocks, buy out of the normal circles, train front-line staff on up-downsizing-cross sizing and tyre husbandry.

•           Invest in your people in training (preferably online) and keep moral high.

•           With pricing; work around keeping your cost low and don’t raise prices when you can’t supply. This puts you up against a customer.

 What the Cowrie shells on the ground say

I would like to pen-off with the words of Kenya’s finance cabinet secretary, Ukur Yatani Kanacho:

“Last year around this time, you would think that ours was a deserted city. Life is now back to normal, the vibrancy is back. We are quite optimistic. Kenyans have accepted and adopted to the new way of living and we are quite alive to the challenges posed by Covid-19”. (TT)

USTMA Brings Industry Leaders to Capitol Hill to Push for U.S. Manufacturing & Road Safety Policies

USTMA Brings Industry Leaders to Capitol Hill to Push for U.S. Manufacturing & Road Safety Policies

 The U.S. Tire Manufacturers Association (USTMA) is convening its annual Tire Manufacturing Ambassadors programme this week, sending industry professionals to Capitol Hill to press lawmakers on policies supporting domestic manufacturing, road safety and sector innovation.

The two-day event, running from 24–25 June, brings together representatives from USTMA’s 11 member companies — including engineers, business managers and marketers — to meet with members of Congress and their staff. The discussions are expected to focus on key legislative priorities such as expanding tyre retreading in the U.S., advancing consumer safety initiatives, and passing a congressional resolution in support of National Tire Safety Week.

“The U.S. tyre manufacturing industry is a vibrant engine of innovation, enabling safe and sustainable mobility for consumers and businesses. Our industry is a cornerstone of the nation’s economy, supporting more than 800,000 jobs and keeping up with evolving consumer expectations on reliability, safety and environmental impact,” said Anne Forristall Luke, USTMA president and CEO.

The ambassadors, who live in the same communities where the industry operates, are set to highlight how national legislation impacts local jobs and infrastructure. USTMA members operate 55 manufacturing facilities across 16 states and contribute to a $170.6 billion annual economic footprint, the association said.

The event follows a letter sent by USTMA to Congressional leaders in February outlining the sector’s legislative agenda. The group is advocating for increased investment in tyre innovation, transparency measures for consumers, and job creation through infrastructure and sustainability-focused policies.

“Our Ambassadors represent the manufacturing workers who power the industry every day, and we are honoured by their advocacy for the tyre manufacturing industry and the communities it supports,” Luke added.

The initiative reflects USTMA’s broader push to align policymakers with the industry’s goals of maintaining global competitiveness while securing long-term growth for U.S. manufacturing.

Nokian Tyres Named Among World’s Most Sustainable Companies by TIME Magazine

Nokian Tyres Named Among World’s Most Sustainable Companies by TIME Magazine

Finnish tyre manufacturer Nokian Tyres has been recognised by TIME Magazine as one of the World’s Most Sustainable Companies 2025, ranking 98th on the prestigious global list of 500 companies demonstrating outstanding environmental and social responsibility.

The second edition of the rankings, compiled by TIME Magazine in collaboration with data firm Statista, evaluated companies based on verified sustainability commitments, including UN Global Compact membership and greenhouse gas emission reduction targets validated by the Science-Based Targets initiative.

Assessment criteria also included performance ratings from respected organisations such as CDP and MSCI, alongside evaluations of sustainable business practices, transparency, and environmental and social stewardship.

Nokian Tyres has positioned itself as a sustainability pioneer within the tyre industry, driving sustainable development both within its operations and throughout its value chain. The company’s environmental leadership dates back three decades, with its Finnish factory becoming the world’s first tyre manufacturing facility to achieve environmental certification in 1995.

“We create tyres that are safe, innovative and sustainable. Nokian Tyres has been a pioneer in sustainability in the tyre industry for over three decades. As early as 1995, our factory in Finland was the first tyre factory in the world to gain an environmental certification. We are proud of our track record and want our sustainability actions to have a meaningful impact. The most recent example of this is our new factory in Romania, the first full-scale zero CO2 emission tyre factory in the world,” said Paolo Pompei, president and chief executive of Nokian Tyres.

The company’s latest sustainability milestone is its new Romanian manufacturing facility, which represents the world’s first full-scale zero CO2 emission tyre factory, demonstrating Nokian Tyres’ continued commitment to environmental innovation in industrial manufacturing.

Sinochem Breaks 500 Billion Yuan Brand Value Milestone, Ranks Seventh in China’s Most Valuable Brands

Sinochem Breaks 500 Billion Yuan Brand Value Milestone, Ranks Seventh in China’s Most Valuable Brands

Chinese state-owned enterprise Sinochem has achieved a significant milestone, with its brand value surpassing 500 billion yuan for the first time, according to rankings released at the 22nd World Brand Conference in Beijing.

The World Brand Lab announced that Sinochem ranked seventh on its annual “China’s 500 Most Valuable Brands” list for 2025, with the company’s brand value climbing from 475.906 billion yuan in 2024 to over 500 billion yuan this year.

This marks the 22nd consecutive year that the Sinochem brand has secured a position on the prestigious ranking. The company’s property development arm, Jinmao, also featured prominently, placing 170th with a brand value of 74.186 billion yuan.

The World Brand Lab’s methodology evaluates brand worth through three key metrics: financial performance, brand strength, and consumer behaviour analysis, employing a “present value of earnings method” for valuation. The ranking is widely regarded as one of the most authoritative assessments in Chinese brand research.

Sinochem’s consistent performance has been particularly notable since 2004 when it first entered the top ten of the annual list. Following the establishment of China National Chemical Corporation on 8 May 2021, the enhanced Sinochem brand has maintained its seventh position for four consecutive years, demonstrating sustained growth in brand value and international market recognition.

The company attributed its success to implementing comprehensive brand management strategies aligned with government directives on brand development. Sinochem stated that it will continue to leverage high-quality brand building and valuable brand assets to strengthen its core functions and competitiveness, supporting the company’s long-term development objectives.

The World Brand Conference, now in its 22nd year, serves as a key platform for evaluating China’s corporate brand landscape and tracking the evolution of the country’s most significant commercial entities.

Continental UHP

German tyre major Continental is significantly expanding its presence in the global market for ultra-high-performance (UHP) tyres. The company states that the UHP tyres are designed for safe and dynamic driving at high speeds and are available in sizes from 18 inches.

Between 2019 and 2024, the premium tyre manufacturer increased its worldwide sales of UHP tyres in the passenger car and light truck segment by approximately 15 percent. Over the same period, the share of UHP tyre sales across all Continental brands rose from 38 to 52 percent, and to 60 percent for the core Continental brand, up from 46 percent five years ago.

Edwin Goudswaard, Head of R&D, Continental Tires, said, “For us, ultra-high-performance tyres are much more than a technological flagship product – they are a strategic driver of innovation. Their development requires engineering of the highest standard, high-tech materials and precise testing and production processes. At the same time, they demonstrate our solid position in the premium segment and significantly contribute to Continental’s economic strength.”

UHP tyres are claimed to provide excellent grip, precise steering, strong brake performance and high driving stability, primarily used on powerful vehicles such as sports cars, SUVs and luxury saloons. The global demand for UHP tyres is projected to grow by around 9 percent annually until 2029, driven by the increasing popularity of SUVs and the electrification of powertrains. Continental is experiencing particularly high demand for UHP tyres in the Asia-Pacific region, especially in China.

The German brand currently offers UHP tyres across all product segments, including summer, winter and all-season tyres. The flagship product in its UHP portfolio is the SportContact 7. Since its global launch in 2022, the SportContact 7 has won 21 out of 24 independent tyre tests, boasting a success rate of over 87 percent.

The company stated that tyre testers have praised its ‘shortest braking distances under all test conditions’ and ‘very balanced and safe vehicle handling on dry roads and even better performance on wet roads compared with the competition.’ Its precise steering characteristics, reproducible driving responses and excellent grip during sporty driving have also received acclaim.

Continental continues to invest in the development of its UHP products, fostering close collaborations with vehicle manufacturers and tuning specialists like AC Schnitzer and Brabus.

"These partnerships enable us to transfer ideas from the high-performance segment to the mass market,” explained Goudswaard. The High-Performance Technology Centre (HPTC) in Korbach produces high-performance tyres for powerful and technologically sophisticated passenger cars and conducts rigorous testing under realistic extreme conditions.

The SportContact 7 has received original equipment approvals for various models, including the Porsche Panamera, Maserati Levante, Audi RS6 Avant, Polestar 3, BMW 5 Series and BYD Seal. The tyre is available in 120 sizes from 18 to 24 inches and has been developed for both electric and conventional vehicles.