According to a recent analysis by ICRA, the Indian automotive sector is poised for a period of normalised wholesale volume expansion in the fiscal year 2026–27. This forecast follows a phase of accelerated growth in the latter half of 2025–26, which was primarily fuelled by factors emerging from post-GST reforms and positive rural market sentiment. The industry is currently undergoing significant structural changes, most notably a shift towards premium products and an evolving mix of powertrain technologies, signalling a deep-seated change in consumer behaviour and technological adoption.

In the passenger vehicle segment, domestic wholesale figures for 2025–26 are anticipated to rise by 5–7 percent. This uptick is attributed to increased affordability resulting from GST rate adjustments, a robust need for vehicle replacement and a continuing inclination towards private transportation. The utility vehicle sub-segment is particularly benefiting from shifting consumer tastes and a surge in new model introductions. Concurrently, alternative powertrains like CNG, hybrids and electric vehicles are gaining traction due to regulatory influences and changing customer preferences. However, building on a high base and elevated inventory levels with dealers, the growth in passenger vehicle wholesales is expected to temper to a more moderate 4–6 percent in 2026–27.

The two-wheeler market is on a path of steady recovery, with an estimated growth of 6–9 percent in 2025–26. This is supported by strong agricultural performance, easier access to finance and better overall affordability. Mirroring the passenger vehicle segment, a trend towards premiumisation is evident, with demand for premium motorcycles and scooters rebounding sharply, while entry-level models continue to face headwinds due to elevated prices and affordability issues for lower-income consumers. The penetration of electric two-wheelers is set to increase progressively, though the industry must monitor supply-side factors such as the availability of rare earth magnets. Looking ahead to 2026–27, the segment's growth is projected to normalise to 3–5 percent.

The commercial vehicle sector is forecast to see wholesale volumes grow by 7–9 percent in 2025–26, driven by increased activity in light commercial vehicles and buses. While replacement demand, infrastructure projects and a stable economy provide a solid foundation, cumulative price increases from successive regulatory changes, like emission norm updates, pose a constraint on more robust expansion, particularly for trucks. For 2026–27, the overall growth for commercial vehicles is expected to settle at 4–6 percent. Within this, medium and heavy commercial vehicles are projected to grow by 5–7 percent, light commercial vehicles by 3–5 percent and the bus segment is likely to outperform with 7–9 percent growth, buoyed by significant replacement needs from state transport undertakings.

Across all these segments, the adoption of electric vehicles is predicted to rise substantially by the end of the decade. This transition will be most pronounced in two-wheelers, three-wheelers and buses, with passenger cars and light commercial vehicles also seeing a gradual increase from their current low base. This widespread shift will be enabled by sustained governmental policy support, the expansion of charging networks and a progressively lower total cost of ownership for electric models.

Srikumar Krishnamurthy, Senior Vice President & Co–Group Head – Corporate Ratings, ICRA, said, “The current fiscal has unfolded as a tale of two halves for the Indian automotive industry, with the first half witnessing subdued demand while the second half is seeing a strong recovery on the back of policy support and healthy rural demand. Industry sales volumes have been robust over the past few months, aided by the GST rate cut, pent–up demand, supportive rural output and conducive financing environment. Although demand sentiment remains optimistic, volumes are reaching levels that would weigh on the potential for outsized growth in 2026–27.

“The Indian automotive industry is currently at crossroads amid changing consumer preferences, technological advancements and focus on sustainability. ICRA expects the growth trajectory to continue in 2026–27 even as growth is likely to remain modest across segments. Over the medium term, vehicle electrification is expected to be a key structural theme, with EV penetration rising steadily across segments.”

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AI mobile data capture company Anyline has reported that approximately 15 percent of tyres inspected across United States during National Tire Safety Week, observed from 29 June to 5 July 2026, registered tread depths below the critical safety threshold of 3/32 of an inch. The analysis was derived from all professional-grade inspections conducted nationwide using the company’s TireBuddy application during that seven-day period.

Industry observers suggest the actual prevalence of unsafe tyres on American roads may be significantly higher, as motorists who voluntarily participate in inspection events typically exhibit greater safety awareness than the general driving population. This self-selection bias implies that the overall percentage of worn tyres among all vehicles likely exceeds the recorded figure.

The data emerges against a backdrop of approximately 11,000 annual tyre-related traffic incidents documented by the National Highway Traffic Safety Administration, many of which involve tyres that showed no prior visible warning signs. National Tire Safety Week was established as an educational initiative to address this gap, given that gradual tread wear remains one of the most easily preventable contributors to highway accidents yet often goes unnoticed by drivers.

On 2 July 2026, Giti Tire collaborated with Anyline to host a complimentary inspection event at its North American headquarters in Charlotte, North Carolina. Participants received an artificial intelligence-powered tread measurement via the TireBuddy app alongside a pressure check, with both metrics compiled into a single visual report. The U.S. Tire Manufacturers Association advises motorists to conduct such evaluations at least once every two months.

William Estupinan, Vice President – Technical Service, Giti Tire, said, “We believe tyre maintenance education is most effective when it's personal. Providing drivers with a tread scan and air pressure reading for their own tyres brings tyre maintenance messages to life in a way that's meaningful and actionable.”

Christoph Braunsberger, CEO, Anyline, said, “Road safety is built from small, routine decisions and few are overlooked as tyre condition. National Tire Safety Week brings that risk into focus and reminds drivers how much a simple check can reveal. Our role is behind the scenes: giving the technicians who carry out inspections a more accurate, consistent way to measure tread depth. Precision like that is what safer roads are built on.”

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The German Rubber Industry Association (wdk) has released its third-quarter member survey for 2026, indicating a slight easing of anxieties regarding raw material availability. Despite this modest improvement in sentiment, the sector continues to grapple with persistently high costs, with no significant financial respite on the horizon.

wdk Chief Economist Michael Berthel addressed the findings, noting that the acute fears of immediate supply bottlenecks have subsided among member companies. However, he underscored that the overall situation remains highly unpredictable, particularly given the ongoing geopolitical tensions near the Strait of Hormuz, which continue to threaten global trade routes.

While the supply of necessary materials is currently stable, the wdk raw material index for a standard natural rubber compound has surged to its highest point in roughly two years. Berthel pointed out that this disconnect between secure supply and unrelenting price levels leaves firms facing a dual challenge, especially in Germany, where elevated energy costs compound the financial strain of expensive inputs.

The association’s report also reveals a bifurcated business climate, with robust international operations contrasting sharply with weak domestic orders. Berthel characterised the overall recovery as fragile, stressing that without substantial government action to reduce energy levies and bureaucratic hurdles, a genuine upturn for the domestic industry remains elusive.

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Hankook Tire, the exclusive tyre supplier for the ABB FIA Formula E World Championship, is set to equip all teams for a historic first in Japan. The 2026 TDK Tokyo E-Prix will mark the series' debut night races, with Rounds 14 and 15 of Season 12 scheduled to start at 20:00 local time on 25 and 26 July.

Tokyo’s presence on the Formula E calendar began in 2024 with the city’s inaugural FIA World Championship race, and it returned as a double-header in 2025. The temporary 2.575-kilometre Ariake waterfront circuit, featuring 18 corners and a mix of straights, technical sections and high-speed combinations, will host the event. Demonstrating a commitment to sustainability, the entire race weekend, including the floodlighting, will be powered by advanced biofuels in partnership with the Tokyo Metropolitan Government.

The unprecedented evening timetable presents a strategic challenge for competing teams. With practice and qualifying occurring during the warmer afternoon, the races will unfold after sunset on a significantly cooler track. This shift demands that engineers not only collect effective data in daylight but also accurately predict tyre behaviour, grip and track temperature evolution as conditions cool towards race time.

Despite the evening start, Tokyo’s intense late-July heat and humidity are expected to persist, placing a premium on the Hankook iON Race tyre’s warm-up characteristics, stable grip and consistent performance. Throughout the weekend, Hankook will also host a booth in the Fan Village, allowing attendees to explore the company’s iON tyre technology and electric vehicle tyre lineup.

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Bridgestone Thailand has introduced the BRIDGESTONE POTENZA SPORT EVO, its newest premium sport tyre, during the IMPACT Speed Fest 2026 event. Positioned as a next-generation offering under the design philosophy of ultimate control and superior performance, the tyre was presented to media representatives for firsthand evaluation. Engineered to provide sharp responsiveness and precise handling, the product caters to drivers seeking sporty dynamics while also accommodating the growing electric vehicle segment under the EV Ready designation.

The tyre incorporates five core performance enhancements aimed at elevating driving confidence and efficiency. Braking capabilities have been significantly improved, with the tyre achieving the highest wet grip index across all available sizes, resulting in up to five percent shorter stopping distances on wet surfaces. Dry braking performance also benefits from an innovative curved tread block design that optimises contact pressure, reducing stopping distances by two percent. Handling stability is reinforced through a specialised groove layout and the integration of high-strength nylon and aramid fibre in the tread, ensuring firm grip across varying speeds.

Durability and energy efficiency have also been addressed, with material and structural upgrades extending tyre longevity by as much as 15 percent, equivalent to over 6,000 additional kilometres of use. Rolling resistance has been lowered by up to six percent, a feature particularly beneficial for electric vehicles. Bridgestone developed this tyre with a lightweight construction to support the performance expectations of EV drivers who continue to value acceleration and high-speed capability, aligning with the company’s broader sustainability objectives.

Available from 2026 in 71 sizes ranging from 18 to 22 inches, the POTENZA SPORT EVO is now accessible through authorised Bridgestone retailers and COCKPIT outlets nationwide, with online ordering options also provided. The launch reinforces Bridgestone’s commitment to blending sporty heritage with environmentally conscious engineering, offering a solution that meets the diverse needs of modern performance and electric vehicle owners.

Akihito Ishii, Managing Director, Bridgestone Sales (Thailand) Co., Ltd., said, “As a global leader in providing sustainable mobility and advanced solutions, Bridgestone is committed to continuous research and development to deliver innovative products that effectively meet the diverse needs of consumers. With this commitment, Bridgestone aims to redefine Thailand’s premium sport tyre segment through the launch of the new BRIDGESTONE POTENZA SPORT EVO. Developed under the concept of ‘Ultimate Control, Superior Performance’, this new tyre is engineered to excel in every aspect of driving performance, delivering an exhilarating driving experience while providing the safety and confidence drivers need on every journey.

“BRIDGESTONE POTENZA SPORT EVO is one of the innovations that Bridgestone is especially proud to introduce to consumers in Thailand, particularly those seeking premium, high-quality tyres. We are confident that this new tyre will not only meet the expectations of performance-oriented drivers but also expand our reach among EV owners who demand exceptional driving performance, precise handling, superior grip, and longer-lasting durability.”

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