The European Tyre & Rubber Manufacturers Association (ETRMA) has presented the tyre industry’s perspective on the European Commission’s Clean Industrial Deal (CID), saying that it marks a crucial step in securing Europe’s industrial future, but greater ambition is needed to truly enhance competitiveness and sustainability in the tyre industry.

Emphasising on affordable energy, ETRMA Secretary General Adam McCarthy said, “Whilst the Action Plan for Affordable presented together with the CID is a welcome initiative, more concrete measures are needed to accelerate the deployment of clean energy, improve grid infrastructure and ensure that industries under pressure from high energy costs and high level of imports receive targeted support. The proposed simplification of state aid rules is a positive step, and we need to ensure that all sectors subject to this double challenge are eligible. However, clarity on long-term structural cost reductions is still lacking.”

On the issue of non-price criteria in public procurement and incentives for private purchases, McCarthy opined that the revision of public procurement rules should actively promote the use of existing labels. “Tyre safety and environmental performances are already visible to consumers since 2012 through the tyre label. Best performing tyres should be supported through criteria in public and private procurement as well as by incentivising consumers in their choices. This would be a virtuous way to increase safety and green transport whilst ensuring that our industry’s investments in green technologies are rewarded,” he said.

He further said that a strong circular economy is essential for Europe’s resource security, and the proposed Circular Economy Act (2026) should remove regulatory barriers and harmonise standards for material recovery and recycling.

“The CID’s focus on critical raw materials should include a dedicated Rubber Strategy, ensuring natural rubber's long-term recognition as essential to European resilience. The review of the Carbon Border Adjustment Mechanism (CBAM) should ensure stability and fair market conditions. Expanding CBAM to cover materials intensively used in the tyre industry (such as carbon black and synthetic rubber) in a context where the Commission is still looking at modifying how CBAM will be implemented, seems premature. The Clean Industrial Deal will serve as a framework for engaging in a dialogue with industry to develop sectoral transition pathways. To address the crisis in the automotive sector, a holistic view of the entire industry's long-term challenges is needed. The tyre industry plays a key role in vehicle performance and clean mobility. This role and needs must be reflected in the forthcoming Industrial Plan for an Automotive Sector. ETRMA is committed to driving this vision forward and ensuring that the tyre industry remains a cornerstone of the European economy,” concluded the ETRMA Secretary General.

China's Shandong Linglong Tire announced plans to invest USD 1.19 billion in a new manufacturing facility in Brazil, marking one of the largest Chinese investments in South America's automotive sector this year.

The project, located in Ponta Grossa in Brazil's southern Paraná state, will be developed through a joint venture with local distributor SUNSET S.A., with Linglong holding a 70 percent stake and the Brazilian partner taking the remaining 30 percent.

Construction is slated to begin in the third quarter of 2025, with full completion expected by the end of 2032 after three construction phases spanning seven years.

The new plant aims to produce 14.7 million tyres annually, including 12 million passenger car radial tyres, 2.4 million truck and bus radial tyres, and smaller volumes of engineering and retreaded tyres. The facility will also manufacture 6,000 tonnes of liquid reclaimed rubber yearly.

Linglong plans to finance the project with USD 600 million in self-funded capital and USD 593 million in bank loans. The facility will include a 35-megawatt solar power plant to support sustainable manufacturing practices.

The investment comes as Brazil's government has been actively courting foreign direct investment through various incentive programmes.

Linglong's venture partner, SUNSET S.A., reported revenue of USD 650 million in 2024 with net assets of USD 200 million, according to the announcement.

The project still requires regulatory approvals from Chinese government bodies, including the National Development and Reform Commission and Ministry of Commerce.

The Federation of Automobile Dealers Associations (FADA), the apex body representing automotive dealers in the country, has appointed Shailender Luthra as the State Chairperson of its Delhi Chapter.

Luthra will closely work with authorised automobile dealers to solve their issues, as well work with the Delhi government and departments to protect the interests of the automobile retailer community in the NCT region. He comes with over three decades of experience and has been a key person behind Brite Group, which operates dealerships for Skoda, Nissan and Royal Enfield brand in the Delhi NCR region.

Shailendra Luthra, said, “Accepting the stewardship of FADA’s Delhi Chapter is far more than an appointment – it is an invitation to re-imagine what mobility can mean for our capital city and by extension, for India. Delhi has always been a trendsetter; now it must become the proving ground for a new era of automotive retail that is sustainable, digitally fluent, and deeply human-centred. My priority is to unite our dealer community, policymakers, innovators and financiers around a single, compelling mission: to make Delhi the benchmark for transparent, future-ready auto retail. With my team of Regional Directors, we will transform today’s challenges into tomorrow’s opportunities and position Delhi as the lighthouse that guides India’s automotive destiny.”

Italian tyre manufacturer Pirelli has announced a strategic partnership with CTS, an independent tyre services provider in Northern Europe, to strengthen its commercial presence in the Nordic region, particularly in Sweden.

Under the agreement, CTS will acquire Däckia AB from Pirelli, which operates a network of 60 direct points of sale and 42 affiliates throughout Sweden. Simultaneously, Pirelli and Däckia have signed a supply agreement through 2030 that ensures the distribution of Pirelli products and maintains Pirelli’s position as the main supplier.

The transaction, subject to customary closing conditions and regulatory approvals, is expected to be finalised by July 2025.

For Pirelli, the alliance aims to establish a more structured distribution system with increased market coverage in a region it considers strategic for its high-value product strategy. The Nordic market is particularly attractive to Pirelli due to its significant presence in electric and hybrid vehicles, a segment where the company claims leadership.

“The Nordic region is a strategic market, for both positioning targets and the quality of the car parc, with a significant EV presence, a segment in which the company has a leading role. The transaction with CTS consolidates our strategic focus on the market, in cooperation with a partner with a complimentary focus in this business,” said Livio Magni, Pirelli Senior Vice President Europe.

For CTS, which operates 52 tyre shops and five retreading sites across Sweden, Finland, Norway, and Poland, the deal represents a significant expansion of its Swedish operations and reinforces its business model focused on sustainability and quality.

“The intended strategic partnership with Pirelli reflects our commitment to sustainability, quality and innovation, reinforcing our promise to deliver outstanding products and services to our customers. Through the intention to acquire Däckia we are building a full-service offering that integrates tire service, distribution, wheel alignment and retreading – all anchored by local workshops and sustainability at the core,” said David Boman, CEO of CTS.

Pirelli has recently invested in extending its “Sottozero Center” proving ground in Sweden, where its R&D department tests products on different surfaces, from snow to ice. The company said this research facility was instrumental in developing its recently launched “Ice Friction” tyre, a high-performance winter product specifically designed for the Nordic market and new-generation vehicles.

The partnership underscores the importance of strategic distribution networks for premium tyre manufacturers as they navigate changing market conditions and the shift towards electric mobility, which requires specialised tyre technologies.

French tyre maker Michelin reported a 1.9 percent drop in first-quarter sales as steep declines in original equipment demand offset gains in its replacement tyre business and improved product mix.

The Clermont-Ferrand-based company maintained its full-year guidance despite the challenging start to 2025. However, sales fell to €6.5 billion in the quarter ended 31 March, down from €6.6 billion a year earlier.

The company cited a 7.3 percent decline in tyre volumes, primarily due to weakness in original equipment markets across all segments, which continued the downward trend seen in the second half of 2024.

“In a highly volatile environment shaped by geopolitical and macro-economic uncertainties, the Group tightens up its steering and keeps its 2025 guidance unchanged,” Michelin said in its quarterly report.

Michelin’s automotive and two-wheel segment, which accounts for more than half of group sales, grew 1.2 percent despite a 3.3 percent drop in volumes, helped by robust demand for replacement tyres and an enriched product mix.

The company said its MICHELIN-brand tyre sales rose four percent in the replacement market, with particularly strong performance in high-value-added tyre sizes. Sales of 18-inch and larger tyres continued to grow in line with the market and now account for 67 percent of MICHELIN-brand sales, up four percentage points from a year earlier.

The road transportation segment suffered a 3.5 percent sales decline as original equipment markets in Europe and North America plummeted by 12 percent and 14 percent respectively. However, replacement tyre sales increased in the segment’s key markets in Europe, North America, and South America.

The most significant weakness was in Michelin’s speciality businesses, which saw sales drop 7.3 percent. This was driven by a steep decline in original equipment sales of agricultural and construction tyres, which fell by about 30 percent compared with the first quarter of 2024.

Mining tyre sales, however, showed resilience, matching the previous year’s levels despite a high basis for comparison. Aircraft tyre volumes also increased, boosted by growth in air traffic.

Despite the challenging market conditions, Michelin maintained its full-year outlook, expecting to outperform its 2024 segment operating income of €3.4 billion at constant exchange rates and to deliver free cash flow before acquisitions of more than €1.7 billion.

Michelin’s performance reflects the broader struggles in the automotive sector. Original equipment markets for passenger car and light truck tyres dropped 13 percent in Europe and 8 percent in North America. The company attributed this to persistent uncertainty about regulations governing the market’s transition towards hybrid and electric technologies and reduced consumer purchasing power.

In contrast, China’s original equipment market grew 10 percent, supported by government financial subsidies launched in the second half of 2024.

The first quarter also saw several developments for Michelin, including the launch of its new MICHELIN Primacy 5 range. The company says this range delivers an 18 percent increase in tread life while maintaining superior wet grip safety performance, reducing noise, and improving fuel efficiency by 5 percent compared with its predecessor.

Michelin also announced that it had started mining tyre recycling operations at its plant in Chile’s Antofagasta region and signed its first commercial contract for its WISAMO wingsail technology, addressing the challenges of decarbonising maritime transport.