Apollo Tyres, one of India’s largest tyre manufacturers is said to have improved its productivity by 9 percent. The tyre major worked with Amazon Web Services (AWS) partner Deloitte, to implement an Internet of Things (IoT) solution on Amazon Web Services, connecting its production equipment to a data lake. 

Through a centralised dashboard the company saw nine percent improvement in its productivity on primary equipment and nine percent reduction in energy usage as it got access to real-time data collection, integration, and advanced analytics.

At present, Apollo Tyres has seven manufacturing plants in Asia and Europe. AWS states that the company’s widespread operations was facing limited insights into the performance of its expensive equipment’s. It wanted an IoT solution to digitalise and standardise its manufacturing processes, where machine data held the key to process efficiency.

While many may not be aware, manufacturing tyres is a very complex process and involves numerous steps and a variety of heavy equipment. The machines at Apollo Tyres were equipped with supervisory control and data acquisition (SCADA) systems, which collect data on production capacity and other metrics. But this data was siloed, offering a window into the performance of individual machines only, with no basis for comparison between machines or plants.

AWS stated that limited visibility were particularly concerning in the case of Apollo’s tyre rubber mixers. These machines are crucial to the manufacturing process. They are also extremely capital intensive — representing an investment of about $24 million (INR 2 billion) each, including related infrastructure — labour intensive, and energy intensive. Any improvement to their performance promised significant returns.

Shibu George, Global Head Advanced Manufacturing, Apollo Tyres said, “With the help of Deloitte, we could shine a light and show our teams how the data could help them improve. It was a great experience. When we started streaming data to AWS, we could compare the performance within the plant, and across plants. That was a unique opportunity.”

With seamless access to mixer data, Apollo Tyres was able to identify performance discrepancies and take corrective actions. The company proceeded with deeper analytics and improved productivity by nine percent — equivalent to the capacity of more than one mixer. 

This also helped reduce its energy usage by three percent, which may look small, but it is important to understand that a single mixer has a massive energy load of about 10 megawatts, which is enough to illuminate a town of about 200,000 people. Reducing CO2 emissions in this energy load by a mere three percent is equivalent to cutting emissions from 4,000 vehicles traveling for an entire year.

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Marking a significant milestone, the Nokian Tyres facility in Oradea, Romania, produced its one millionth tyre of the year on 20 December 2025, thereby reaching its annual production target. This new factory, inaugurated in September 2024, began deliveries in March and is dedicated to supplying passenger car tyres for the European market.

Its inaugural year saw the production of premium models like the Nokian Tyres Snowproof 2 winter tyre, upholding the company’s 90-year legacy of safety and sustainability. The product range expanded this year with the launch of two further tyres for Europe: the Seasonproof 2 all-season and the Powerproof 2 summer tyre, with more new products planned for future manufacture at the site.

Distinguished as the world’s first full-scale zero-CO2-emissions tyre factory, the Oradea plant operates entirely without fossil fuels, employing cutting-edge production technology. Upon its anticipated completion around the end of 2027, it will become Nokian Tyres’ largest global production facility, accounting for roughly 40 percent of total capacity. It represents the company’s third major manufacturing hub alongside its existing factories in Nokia, Finland, and Dayton, US. Currently, the Romanian operation employs over 500 people, underscoring its important role in Nokian Tyres’ strategic European production network.

Paolo Pompei, President and CEO, Nokian Tyres, said, “I am very proud of our entire team for their hard work in reaching this milestone. It is a strong testament to our commitment to customers across Europe, enhancing our service level and delivering innovative products that ensure safety and comfort for drivers in all conditions.”

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Magna Tyres Group has agreed to acquire Telescope Tyres Group, extending its footprint in Australia and strengthening its position in the Australasian market.

The transaction, announced on 22 December, will see Magna Tyres take ownership of the Australian tyre and service specialist, which operates multiple branches across regional New South Wales. Financial terms were not disclosed. The deal is expected to close in January 2026.

The acquisition expands Magna Tyres’ regional presence in Parkes, Dubbo, Gunnedah and Cowra and adds Telescope Tyres’ on-site, mechanical and fleet services to Magna’s international product portfolio. The group said the combination would deliver operational synergies, including improvements in logistics, supply chain efficiency and service reliability.

Telescope Tyres will continue to operate under its existing brand in the near term. Its management team and employees will remain in their current roles, with the business supported by Magna Tyres’ global systems and network.

Michael de Ruijter, Chief Executive of Magna Tyres Group, said, “Australia is a vital market in our international growth strategy, and Telescope Tyres is a highly respected name with a strong local reputation. Their customer focus and service quality align perfectly with Magna’s values. Together, we will build a stronger, more capable business that can serve customers with even greater efficiency and reliability.”

Nathan Johnston, Managing Director of Telescope Tyres Group, said the transaction marked “an exciting new chapter” for the company, adding that Magna Tyres’ global resources would support future growth while preserving Telescope’s local identity.

Aldo Gismondi, managing director of Magna Tyres Australia, said, “The Telescope acquisition strategically positions MTA on the East Coast given the acquisition of Fennell Tyres International on the West Coast of Australia in 2021 and brings consolidated revenue to 75–80m annually.”

Following completion, Magna Tyres said it would invest in technology, training and infrastructure and explore further opportunities to expand its network across Australia and New Zealand.

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The rugged landscapes of Arunachal Pradesh once again took centre stage as the JK Tyre Orange 4X4 Fury International wrapped up successfully, emerging as a major highlight of the Orange Festival of Adventure and Music, held from 18 to 21 December 2025. Spanning the districts of Namsai, Lohit, Lower Dibang Valley and East Siang, the event reinforced the state’s growing stature as a destination for high-endurance motorsport and adventure tourism. Enthusiasts from across India were joined by international teams from Thailand and Malaysia, reflecting the rally’s expanding global appeal.

Over three demanding days, 50 specially prepared off-road vehicles battled a constantly changing terrain shaped by the Lohit, Dibang and Sisiri rivers. Competitors faced a mix of riverbeds, forest tracks and sandbanks that tested mechanical resilience and driver strategy alike. Teams competed in Pro-Modified and Stock categories, each supported by two vehicles to ensure continuity during long endurance stages, recoveries or breakdowns. The format encouraged collaboration while maintaining intense competition, turning every obstacle into a test of teamwork and resolve.

The rally began with a dramatic prologue stage on 17 December, run entirely in darkness within the Bereng River. This challenging opener immediately set the tone for the expedition, with standout performances led by seasoned off-roaders, including the reigning Rainforest India Challenge leader, who established early momentum. The official ceremonial flag-off followed on 18 December at the Golden Pagoda in Namsai, led by senior state officials, marking the formal start of the international challenge.

Beyond motorsport, the event seamlessly blended adventure with culture and entertainment. The Orange Music Festival ran alongside the rally, drawing large crowds with performances by leading national artists as well as prominent regional musicians. The festival recorded peak attendance exceeding 15,000 visitors in a single day, underlining its wide appeal.

Backed by the Department of Sports and Youth Affairs, Government of Arunachal Pradesh, and JK Tyre, the event showcased a shared vision of promoting adventure sports, youth engagement and sustainable tourism across the state.

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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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