A recent FICCI survey made it amply clear that the Covid-19 pandemic has had a deep impact on Indian businesses which could lead to "unprecedented collapse" of the Indian economy. Only a substantive and urgent economic package by the Government could save a large section of the industry from permanent impairment, survey findings stated.

The survey has just brought to the fore what businesses, cutting across segments, have been realizing ever since the Corona outbreak led to shuttering of businesses and disruption of supply chains. A financial stimulus is, indeed, imperative in view of the huge financial impact on businesses especially to those like auto & tyre sectors who had been facing exceptional distress even before the arrival of the current pandemic. For instance, Tyre industry is poised to lose sales of nearly Rs 10000 crore due to lock-down till the end of April. There is huge blockage of funds by way of inventories of raw materials and in the form of finished goods. Many OEMs have asked for deferment of payments and realizations from the replacement market have dried out.

It is heartening to note Government’s resolve to fight back with full might. Hon’ble Prime Minister has exhorted his cabinet that Government must work on war footing to mitigate the impact of Covid-19 and strategize for the emergent conditions. However, what is of greater significance is PM’s advice to lessen the country’s dependence on other nations and give a sincere push to 'Make in India' as a long-term strategy to immune the country from external trade shocks. He emphasized on boosting India's manufacturing and exports to benefit from emerging world realties.

Certainly, it is all the more important now to identify champion sectors where the country has much better bet of attaining the ideals of Make in India. These sectors will include the ones which have significant employment potential, have proven credentials in domestic manufacturing and exports, enjoy wide acclaim for quality worldwide and have the capacity to ramp up and become global leaders.

On all these counts, Tyre Industry in India has withstood the test very well over the years. It is unfortunate that Indian Tyre Industry has remained one of the less celebrated success stories on manufacturing landscape of India. The industry has not been adequately acclaimed for sterling achievements in areas such as exports, research & development and innovation. It is time that industry’s key contribution as wheels of nation’s economy gets adequately noticed.

For one, Tyre Industry is self-sufficient in India with indigenous capacities to manufacture practically all kinds of tyres from a moped tyre to mammoth off-the-road tyres. Not many countries in the world can boast of this capability.

Not only has the Tyre Industry worked for a self-reliant India ever since independence but has emerged as a major exporter with Indian manufactured tyres being exported to more than 100 countries in the world including the most discerning ones such as US and European countries. Exports of tyres from India are in the range of Rs 12000 crore per annum (nearly 20% of the industry revenue).

Job creation potential of the Tyre Industry is huge in view of a rich value chain extending from rubber planters to tyre mechanics. Industry supports over one million Natural Rubber (NR) planters since as much as 75% of the NR produced in the country is consumed in tyre manufacturing. Another million or so are engaged in tyre manufacturing, tyre retreading and those employed at tyre dealerships and tyre repair services across the length and breadth of the country.

Indian Tyre Industry is increasingly converging with the world in terms of practices, product quality and research & development. Today India has some of the finest radial tyre manufacturing facilities in the world. International vehicle majors (OEMs) have been rolling out leading brands in India on Indian made tyres underscoring the quality edge. The Indian Tyre Industry is emerging as a force to reckon with in the global manufacturing ecosystem. As many as four Indian tyre companies find a pride of place among the top 30 tyre companies in the world.

At a time when private investments have been hard to come by, Tyre Industry in India has continued to invest handsomely in capacity creation and technology. Ongoing and recently completed investments are to the extent of Rs 51000 crore which is unprecedented in the history of the industry.

There is little doubt that India is in the sweet spot as far as tyre manufacturing goes. Seasoned entrepreneurship, availability of skilled manpower, availability of NR plantations and products surpassing international quality benchmarks –are all the ingredients to make India a hub for tyre manufacturing in the world.

Tyre Industry deserves to be a shining example of Indian manufacturing (much like IT or Pharma in the respective sectors) in view of advancements in technology, contribution to Auto and Transport sectors, job creation potential and growth projections.

Currently, several countries in the world are looking to reduce their dependence on China for political, economic and strategic reasons. US and Japan are openly looking for alternatives to China to source products which offer quality and price competitiveness. And therein lies the opportunity of casting the net wider for exports of tyres from India.

However Indian Tyre Industry can leverage this opportunity and replace China in several key markets only if production and exports are provided a policy push by the Government and bottlenecks are removed. China enjoys huge economies of scale as far as tyre manufacturing is concerned. For instance China exports tyres worth US $15 bn in a year which is nearly double the size of Indian Tyre Industry. Actually China has provided large export incentives to its tyre companies since the manufacturing capacity in China is many times that of its domestic requirements. To insulate its companies from the vagaries of fluctuation in Natural Rubber prices and availability, China is maintaining large reserves of rubber as a state policy.

Corona outbreak can work to India's advantage as the quality of tyres produced in India has received worldwide acclaim. India can leverage this opportunity, if production and exports of tyres is given a strong fillip. That requires a support to the industry much in the same way that Chinese Government has been providing to its tyre companies.

India’s economic engine needs a lot of help from the Government to restart after the lockdown. However support to a champion sector like Tyre Industry which has already proven its credentials as employment and export revenue generator will pay dividends in multiples.

Pirelli is all set to become the official tyre supplier to MotoGP from 2027. A new five-year agreement is in the works and will see the Italian tyre company become the single tyre supplier for the MotoGP, Moto2 and Moto3 categories.

With the new MotoGP bikes and technical regulations scheduled to take effect in 2027, the approach of using a single supplier will offer the ideal progression ladder for the future champions to refine their skills while advancing to the top. Pirelli currently supplies tyres for Moto2 and Moto3 categories. With the new development, Pirelli will expand its presence to MotoGP and into MotoE, the electric world championship.

Michelin will remain the exclusive supplier for MotoGP and MotoE until the end of the current technical regulations at the close of the 2026 season, continuing to provide technical support, its products and world class technology over the next two seasons.

Nexen Tire’s NBlue 4S Van tyre has won the Best Light Commercial Tire award at the 22nd edition of the Tire of the Year Awards.

Neumáticos & Mecánica Rápida organised the esteemed awards ceremony, which took place on 30 January at the Novotel Madrid Center hotel. It honoured the top tyres of 2024 in the passenger vehicle, SUV, truck and agricultural tyre divisions. Key figures from the business, including executives from well-known tyre manufacturers such as Pirelli, Continental, Yokohama, Michelin and Bridgestone, attended the event. Raúl Jiménez, Nexen Tire’s Business Development Director for Iberia, accepted the award on behalf of the company from Eusebio Albert, Director of the Transport area at Versys Ediciones.

The NBlue 4S Van, a tyre made to satisfy the exacting requirements of commercial fleets and drivers, is recognised for its superior performance, safety and fuel efficiency with the Best Light Commercial Tire award. This accolade comes as Nexen Tire solidifies its position as a top producer of premium tyres by expanding its footprint in Europe and throughout the world.

Jiménez said, “We are honoured to receive this prestigious award, which is a testament to our ongoing dedication to providing award-winning products for our customers. The NBlue 4S Van is designed to offer superior performance and durability, and this recognition reinforces our commitment to delivering the best solutions to the commercial sector.”

Pirelli is mulling expansion of its tyre production capacity in the US to offset the impact of US tariffs that came into effect from 4 March, company executives said on a 2024 financial results call.

The company has a contingency plan in place to deal with the US imposing 25 percent tariffs on imports from Mexico and Canada. CFO Andrea Casaluci clarified that although Pirelli's US business accounted for over 20 percent of company sales, the amount of tyre manufacture there is restricted. The company's Georgia plant can produce about 400,000 tyres annually. Pirelli imports about half of its US supply from Mexico and around 40 percent from Brazil and Europe in order to fulfil market demand in the US.

Pirelli has a backup plan to boost imports from Brazil and expand US production capacity in order to lessen the effects of tariffs. According to the CFO, the Italian tyre manufacturer has already begun modernising the automated MIRS production processes in Georgia. This will serve as the foundation for the initial phase of capacity development in the US.

Additionally, the inflationary scenario will be used to examine the group's commercial approach. The CFO stated that since 30 percent of the US tyre market is imported, some inflationary pressure is to be expected in the wake of tariffs. The contingency plan also includes cost-cutting measures, in addition to the EUR 150 million in savings in 2025 that are anticipated under its industrial plan.

Nokian Tyres has launched the Seasonproof 2 all-season tyre for the Central European market to provide top-class safety on snow and slush as well as exceptional performance in summer for its customers.

The all-season Seasonproof 2 was created to satisfy the demands of drivers in Central and South Europe. By the fall of 2025, the product line will be accessible to customers in sizes for contemporary passenger cars, SUVs and CUVs. All-season tyres are made to function safely in Central European circumstances throughout the four seasons. The Nokian Tyres Seasonproof 2 is legally certified for winter use since it bears the Snowflake emblem (3PMSF). 

The tyre range includes up to 38 percent recycled, renewable and ISCC PLUS certified materials, with two percent coming from bio-based, bio-circular and/or circular feedstock that has been certified using the ISCC PLUS mass balanced technique. The introduction is a significant step toward the company's non-financial goal of increasing the proportion of recycled and renewable raw materials in its products to 50 percent by 2030. Additionally, it is the first tyre range available on the market to be manufactured in Nokia's new Romanian facility, the first fully operational tyre factory with zero CO2 emissions.

Tommi Alhola, Senior Vice President of Passenger Car Tyres, Central Europe for Nokian Tyres, said, “Central Europe is an important strategic growth area for Nokian Tyres. Nokian Tyres Seasonproof 2 is produced in our zero CO2 emission tyre factory in Oradea, Romania, close to the Central European consumers and customers. Furthermore, launching a tyre range using up to 38 percent renewable, recycled and ISCC PLUS certified materials takes us significantly closer to our goal of using 50 percent renewable and recycled materials in our tyres by 2030.”

Teemu Soini, Vice President of Innovations and Development at Nokian Tyres, said, “By incorporating renewable materials, we have been able to boost the tyre’s performance while also lowering the rolling resistance. We are committed to finding renewable or recycled options for traditional fossil-based materials, and together with various partners keep researching for new innovative options.”