CRISIL Market Intelligence and Analytics has predicted a rough patch for the tyre industry in its latest report. As per the report, the price of natural rubber has surged more than 33 percent on-year in the first five months of this fiscal due to strong demand and crunched supply, potentially affecting profitability.

The research also notes that domestic natural rubber prices ended August at an average of INR 238 per kg, significantly higher than the previous 10-year trend. The commodity last broke beyond the INR 200/kg barrier in 2011, driven by the rebound in demand following the Global Financial Crisis and the accommodating policies of the US Federal Reserve and other central banks. From 2008 to 2011, prices have grown at a compound annual growth rate of 101 percent. But the three-year boom was short-lived, and prices were low, averaging less than INR 150 per kilogramme, for the next 10 years. Since the end of 2023, prices have increased dramatically once more despite several difficulties.

Pushan Sharma, Director – Research, Market Intelligence and Analytics, said, “While the previous spikes were triggered by isolated events such as farmer protests over low profits in 2016 or the pandemic-induced labour crisis in 2020, the current price rise is rooted in fundamentals, i.e. demand and supply dynamics. In 2011, the natural rubber market had sufficient supply to cater to global demand. Between fiscals 2011 and 2023, however, global production grew 35 percent, while demand expanded 40 percent, resulting in supply crunch and, thereby, higher prices.”

This has a significant impact on tire manufacturers' profitability since, depending on the kind, natural rubber makes up 20–40 percent of the weight of tyres. About 80 percent of the nation's natural rubber use comes from the tyre sector. Therefore, there is a negative association between the cost of natural rubber and the profit margins of tyre original equipment manufacturers (OEMs). For example, while natural rubber prices surged by 22 percent year over year in the first quarter of this fiscal year, the operating margin of the top five Indian listed tyre makers fell by almost 200 basis points to 14 percent, down from 16 percent in fiscal 2024.

The cost of crude-based raw materials, such as nylon tyre cord fabric, poly butadiene rubber, styrene butadiene rubber and carbon black, is also anticipated to decrease as crude oil prices ease. However, CRISIL's Basic Tyre Raw Material Index, which tracks the prices of these commodities, is likely to increase due to the rising cost of natural rubber. After declining by five percent the previous fiscal year, the index is predicted to rise by 4–6 percent this time around.

Mohit Adnani, Associate Director – Research, Market Intelligence and Analytics, said, “With further rise in demand and restricted supply, the prices of natural rubber are expected to remain elevated, impacting the margins of tyre manufacturers well beyond fiscal 2025. The deficit in the natural rubber market is expected to triple in 2024 as smaller tappable area and lower yield, along with a potential increase in demand, test the supply side.”

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Hankook Tire’s iON Race compound faces its most demanding test of the ABB FIA Formula E World Championship season this weekend as the championship’s sole tyre supplier arrives for the 2026 Monaco E-Prix. The double-header Rounds 9 and 10 of Season 12 take place on 16 and 17 May around the 3.337-kilometre Circuit de Monaco, where the specialised tyre must handle everything from tight hairpins to high-speed tunnel blasts.

The Principality’s layout features 19 turns and dramatic elevation shifts, creating a constantly changing environment for the rubber. Drivers emerge from the shaded Sainte-Dévote ascent into direct sunlight along Beau Rivage, then brake heavily for the Grand Hotel Hairpin before accelerating through the tunnel towards the harbour. Each lap subjects the iON Race to alternating low-speed loads and high-frequency thermal spikes, demanding consistent response across its entire operating range without a single moment of mechanical sympathy.

With two full race days on consecutive dates, teams cannot rely on track evolution alone to manage tyre behaviour. Shifting grip levels between Saturday qualifying and Sunday’s race, compounded by changing light conditions around the circuit, force every squad to prioritise repeatability. Hankook has engineered the iON Race to deliver stable warm-up and predictable thermal control, allowing drivers to execute energy management strategies even when braking zones and cornering loads vary lap by lap.

Hankook continues to bridge racing innovation to road cars. Recent fan activations at Miami and Berlin displayed iON tyres fitted to Nissan and DS Automobiles’ latest EVs, demonstrating how motorsport-derived grip and consistency translate into everyday electric mobility. The Monaco double-header now serves as the next proving ground for that technology transfer.

Manfred Sandbichler, Senior Director, Hankook Motorsport, said, “Monaco presents a unique challenge where precision and consistency are critical from the first lap. With limited room for error, tyre performance needs to be predictable across a wide range of conditions. The iON Race is designed to support that consistency, allowing teams to manage performance effectively across both qualifying and race conditions.”

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Anyline, a global leader in mobile AI and intelligent data capture technology, has stepped in to help transform how aircraft tyre inventories are managed in New Zealand, supporting logistics firm B&H Worldwide with its mobile AI and data capture tools. The technology has been woven into B&H’s existing FirstTRAC platform, targeting the unique demands of aerospace supply chains where precision and tracking are essential.

Processing times for tyre-related stock tasks have fallen by 60 percent since the system went live. Error rates have dropped sharply, landing between 80 and 90 percent, while data accuracy now sits above 99 percent. The number of tyres handled per hour has also climbed by roughly 30 percent, with warehouse teams using mobile devices to log key tyre details directly on the floor.

New Zealand was chosen as the launch pad for the global pilot, setting a template for future rollouts across B&H’s broader network. The Anyline mobile and web software development kits feed a continuous stream of live data into FirstTRAC, covering stock checks, dispatch requests and bulk uploads. That real-time visibility strengthens compliance and creates a clear digital trail for high-value assets.

For Anyline, the project shows how AI can remove friction from manual logistics work, especially in aerospace where every part must be traceable. The next site already lined up is Melbourne, marking a clear step forward in B&H’s wider push towards digitised, resilient operations.

Christoph Braunsberger, CEO, Anyline, said, “We’re proud to support B&H Worldwide in transforming a highly specialised aerospace logistics workflow with AI. This implementation demonstrates how intelligent tyre data capture can improve speed, accuracy and traceability in safety-critical operations.”

Lee Hedges, Branch Manager, B&H Worldwide New Zealand, said, “This implementation represents a significant step forward in how we manage high-value, safety-critical inventory. By introducing real-time tyre scanning, we’ve improved accuracy, speed and traceability across our operations. For our customers, it means greater visibility, faster reporting and increased confidence in the integrity of their stock.”

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Continental has emerged as the dominant force in the 2026 independent European summer tyre tests, securing 13 outright wins and 19 podium finishes across 24 evaluations conducted by leading automotive publications and mobility organisations. The results span a diverse range of tyre segments and test conditions, reinforcing the German manufacturer’s reputation for consistent top-tier performance.

The company’s tyres excelled particularly in braking, wet grip and overall balance, showing reliability across vehicle classes from sustainable products to ultra-high-performance applications. Independent testers repeatedly highlighted Continental’s strong braking performance, high levels of wet adhesion and well-rounded driving behaviour, confirming its premium ambitions.

Among the standout achievements, the PremiumContact 7 was named overall winner in the Auto Zeitung UHP summer tyre test, praised for its balanced wet and dry handling. The SportContact 7 claimed first place in the Auto Bild sportscars UHP test, recognised for precise handling and shortest braking distances. Meanwhile, the UltraContact NXT achieved a leading position in the AvD summer tyre test, proving that sustainability-focused designs can deliver strong core safety performance.

Continuous development in tread design, compound technologies and tyre construction underpins these results, allowing a blend of safety, efficiency and driving dynamics. The 2026 test season ultimately demonstrates Continental’s ability to deliver reliable top-level results across a broad portfolio and a wide range of independent evaluations.

Andreas Schlenke, Tire Expert at Continental, said, “These results confirm the consistency of our product performance across different segments and test conditions. They show that our focus on braking, wet grip and overall balance translates directly into strong results in independent testing.”

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Hankook Tire is supplying its Ventus F200 racing tyre to the HWA EVO.R sedan, competing in the 2026 Nürburgring 24 Hours, taking place from 14 to 17 May in Germany. Serving as the Official Technology Partner of HWA AG, Hankook is providing technical assistance throughout the race weekend with the Ventus F200 fitted to the HWA EVO.R in the open SP-X class for high-performance tuned vehicles. The racing slick is engineered for dry conditions and aims to deliver stable performance under extreme endurance racing demands.

Recognised globally in motorsport, the Ventus F200 incorporates advanced compound technologies that enhance driving performance and achieve roughly a 10 percent weight reduction over its predecessor. The tyre offers strong grip, high-speed stability and precise handling under demanding race conditions. HWA AG, founded by former Mercedes-AMG Co‑Founder Hans Werner Aufrecht, is a noted global motorsport engineering company specialising in high‑performance vehicle development.

This collaboration expands an existing strategic partnership, following Hankook’s original equipment tyre supply for the limited‑production HWA EVO last year. Hankook currently provides several ultra‑high‑performance OE products for that model, including the Ventus evo Z, Ventus evo and Winter i*cept evo3. Moving forward, Hankook plans to strengthen its premium brand competitiveness by deepening cooperation with HWA AG in both OE and motorsport sectors.

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