The automotive retail sales in January 2025 grew by 6.63 percent YoY, a growth much better than previously anticipated by most industry observers. A total of 22,91,621 vehicles were sold across segments, which includes 15,21,862 two-wheelers (+4.15 percent YoY), 1,07,033 three-wheelers (+6.86 percent YoY), 4,65,920 passenger vehicles (+15.53 percent YoY), 93,381 tractors (+5.23% YoY) and 99,425 commercial vehicles (+8.22% YoY) according to the latest data released by the Federation of Automobile Dealers Associations (FADA).

“The auto retail sector kicked off 2025 on a promising note, aligning with FADA’s earlier survey projections that expected January to range from flat to moderately positive. Indeed, overall retail sales posted a robust 6.6 percent YoY growth, reinforcing the industry’s optimistic start. Our observations indicate that each vehicle category – two-wheeler, three-wheeler, passenger vehicle, tractor and commercial vehicle – witnessed positive momentum, pointing toward sustained consumer confidence and steady market recovery,” said C S Vigneshwar, President, FADA.

In the two-wheeler segment, urban sales outpaced rural sales on the back of new model launches, marriage season demand and improved financing as key growth drivers. However, concerns about rising interest rates, rural liquidity challenges and market uncertainty still linger.

The passenger vehicle segment saw some spike on the back of ‘2025 model year’ sales, as the previous year models do see significant discounting.

“Commercial Vehicle sales increased by 8.22 percent YoY and surged 38.04 percent MoM, with urban markets climbing from 50.1 percent to 51.2 percent share and outpacing rural growth (9.51 percent vs 6.89 percent). While higher freight rates and passenger carrier demand provided a boost, many dealers cited low cash flow, strict financing policies and sluggish industries (like cement and coal) as major hurdles. Sentiments in rural regions remained notably subdued, compounded by limited new products. Overall, the sector shows cautious optimism but faces persistent headwinds,” added Vigneshwar.

Going forward, FADA maintains a cautious optimism for February, with dealers having a mixed sentiment ranging from an uptick, flat to even a drop in sales.

The tailwinds include continuing marriage season, fresh product launches and strategic promotional activities to sustain customer footfalls. This will be aided by improved inventory management, better financing options from select lenders and backlogged orders in certain segments (such as commercial vehicles) add to the sense of guarded confidence. With supportive policies and a post-budget lift in consumer sentiment, many believe February could see a stable or slightly elevated sales curve.

On the other hand, the headwinds expected include shorter working days, pockets of weak rural liquidity and inflationary pressures. Then there is the strict lending criteria, costlier vehicles and subdued demand in certain industrial sectors to further weigh on overall performance.

Category	Jan '25	Jan '24	Change (in units)	Change (in %)	Dec '24	Change (in %)
			YoY	YoY		MoM
Two-wheeler	1,525,862	1,465,039	60,823	4.15%	1,197,742	27.39%
Three-wheeler	107,033	100,160	6,873	6.86%	93,892	14.00%
E-Rickshaw (P)	38,830	40,537	-1,707	-4.21%	40,845	-4.93%
E-Rickshaw with Cart (G)	5,760	3,744	2,016	53.85%	5,826	-1.13%
Three-wheeler (Goods)	12,036	10,716	1,320	12.32%	9,122	31.94%
Three-wheeler (Passenger)	50,322	45,113	5,209	11.55%	38,031	32.32%
Three-wheeler (Personal)	85	50	35	70.00%	68	25.00%
Passenger Vehicle	465,920	403,300	62,620	15.53%	293,465	58.77%
Tractor	93,381	88,741	4,640	5.23%	99,292	-5.95%
Commercial Vehicle	99,425	91,877	7,548	8.22%	72,028	38.04%
LCV	56,410	51,260	5,150	10.05%	39,794	41.76%
MCV	6,975	5,586	1,389	24.87%	4,662	49.61%
HCV	30,061	30,220	-159	-0.53%	22,781	31.96%
Others	5,979	4,811	1,168	24.28%	4,791	24.80%
Total	2,291,621	2,149,117	142,504	6.63%	1,756,419	30.47%

Research analysing 850+ studies reveals fragmented methodologies hampering understanding of environmental impact

Scientists have called for urgent standardisation of methods used to measure and assess tyre wear emissions, following publication of what they describe as the most comprehensive review of research in the field to date.

The "State of Knowledge" series, which analysed more than 850 peer-reviewed scientific publications spanning four decades, has revealed significant gaps and inconsistencies in current understanding of how tyres shed particles and chemicals during use.

The research highlights how fragmented approaches across different studies have prevented scientists from drawing definitive conclusions about the environmental and health impacts of tyre wear emissions, which occur when tyres interact with road surfaces during driving.

"The topic of tyre wear emissions is extremely complex, multi-dimensional, and unfortunately only partially understood," said Dr Stephan Wagner, one of the paper's lead authors. "Until these gaps are closed, there is a growing concern that decisions about tyre emissions could be based on incomplete science."

The first two papers in the three-part series focus on characterising tyre wear emissions and assessing their environmental impact. A third paper examining potential health impacts is expected later this year.

The research, supported by the Tire Industry Project - part of the World Business Council for Sustainable Development - found that tyre wear creates not just particles but also releases volatile compounds and dissolved chemicals that can leach into the environment.

Current data suggests the risk from most tyre and road wear particles in water and soil is "generally lower down the priority list", according to the environmental risk assessment paper. However, researchers said insufficient data exists on tyre leachables and volatile compounds to make a full assessment.

The studies propose a tiered measurement framework and call for harmonised testing protocols to enable meaningful comparisons between different research efforts.

"The SOK underscores why we need a concerted, multi-stakeholder response to close the knowledge gaps, now more than ever," said Larisa Kryachkova, executive director at the Tire Industry Project.

The research comes as regulators worldwide grapple with how to address microplastic pollution, including particles from tyre wear. The European Union has been considering regulations on tyre emissions as part of broader environmental protection measures.

The authors suggest existing frameworks for assessing microplastics could provide a starting point for developing tyre emission guidelines, with modifications to account for the unique characteristics of tyre wear materials.

"We hope that these papers will encourage the scientific community and serve as a catalyst for further research and standardisation," Wagner concluded.

The Tire Industry Project plans to host a research conference at MIT in Boston to promote collaborative approaches to addressing the knowledge gaps identified in the review.

Japanese tyre maker launches cost-cutting initiative as US tariffs bite

Sumitomo Rubber Industries maintained its full-year profit forecast despite a sharp decline in first-half earnings, as the Japanese tyre maker launched a comprehensive cost-reduction programme to counter rising raw material costs and US trade tariffs.

The company reported business profit of 28.3 billion yen for the six months ended June 30, down 33 percent from the previous year, whilst sales revenue fell  three percent to 572.2 billion yen. Profit attributable to shareholders plunged 63 percent to 14.4 billion yen.

Despite the weak first-half performance, Sumitomo Rubber held its full-year business profit target at 95 billion yen, representing an eight percent increase from the previous year.

"At the initial planning stage for H1, we anticipated significant negative impacts from rising raw material costs, particularly natural rubber, as well as foreign exchange fluctuations," President and CEO Satoru Yamamoto told analysts. "Overall, performance progressed largely in line with our plan."

The company faces headwinds from US tariffs imposed under the Trump administration, with an estimated impact of 14.5 billion yen for the current fiscal year, down from an initial estimate of 18 billion yen following tariff postponements and rate reductions in Japan and Indonesia.

Project ARK targets 30 billion yen savings

To bolster profitability, Sumitomo Rubber launched "Project ARK," a company-wide cost-reduction initiative targeting 30 billion yen in cumulative savings by the end of 2027 from its 1.1 trillion yen annual cost base.

"By advancing Project ARK, which carries forward the direction of the Be The Change initiative, we intend to help build a robust management foundation that is resilient to such external changes," Yamamoto said.

The programme focuses on tyre production costs, shared administrative and R&D expenses, and non-tyre business segments. General Manager Shinji Araki, who leads the project, said the company expects to achieve "several billion yen" in savings this year, ramping up to approximately 10 billion yen in fiscal 2026.

Dunlop brand expansion progresses

The company began selling tyres under the acquired Dunlop brand in North America and Australia in May, following the completion of its trademark acquisition from Goodyear Tire & Rubber. Sumitomo Rubber plans to launch proprietary Dunlop products for the North American market in January 2026, with European sales to follow.

"By introducing differentiated products manufactured by the Company under the DUNLOP brand in Europe, North America, and Oceania, we aim to increase the proportion of premium products," Yamamoto said.

The company's proprietary Active Tread technology, featured in its Synchro Weather tyre launched in Japan last October, won multiple industry awards and is being developed for next-generation all-season tyres targeting European and North American markets for a 2027 launch.

Tariff impact manageable

Sumitomo Rubber began implementing price increases in the US  market in May to offset tariff impacts, with Managing Executive Officer Hidekazu Nishiguchi saying progress has been "generally in line with our plan."

The company estimates it can recover approximately 10 billion yen of the 13.5 billion yen tariff impact on its tyre business through price increases, with the remainder offset through cost reductions and expense controls.

"Since we primarily ship from Thailand, the tariff is applied to the export price from Thailand. As a result, we estimate the effective tariff burden to be around 12% to 13%," Nishiguchi explained.

For the full year, Sumitomo Rubber forecasts sales revenue of 1.215 trillion yen, unchanged year-on-year, whilst maintaining its interim dividend at 35 yen per share with a projected year-end dividend of 35 yen for a total annual payout of 70 yen.

The company's tyre sales volume is expected to decline four percent to 99.03 million units for the full year, though it continues to focus on premiumising its product mix, with premium tyres forecast to account for 46 percent of passenger car tyre sales, up from 44 percent previously.

During the recent BASF Demo Day at Hurcott Farm, Trelleborg Tires presented its advanced tyre technologies to an audience of agricultural professionals. The farm's operators, Mark, Sue and Andrew Doble, facilitated hands-on demonstrations that highlighted the tangible benefits of proper tyre pressure management in real-world farming scenarios.

The company's VF (Very High Flexion) tyre technology took centre stage, demonstrating its ability to operate effectively at reduced inflation pressures. This engineering breakthrough allows for improved weight distribution across a larger contact area, significantly decreasing soil compaction while maintaining optimal traction. Such advancements contribute directly to preserving soil health and enhancing long-term field productivity.

Complementing this innovation, Trelleborg's ProgressiveTraction tread design exhibited its dual functionality – delivering exceptional field performance without compromising on-road comfort. The unique dual-anchor lug configuration provides multidirectional grip, effectively reducing wheel slippage and improving fuel efficiency across various terrain conditions. An integrated Interlug system further enhances operational performance through superior self-cleaning capabilities and stability.

To support customer investments, Trelleborg extends a comprehensive 5,000-hour warranty on select ProgressiveTraction models when registered through their Premium Care initiative. Industry partner C&O Tractors, renowned Massey Ferguson specialists, participated in the event, showcasing the synergistic benefits of combining premium tyre technology with high-performance agricultural machinery.

This demonstration underscores Trelleborg's ongoing commitment to developing innovative solutions that address the evolving needs of modern agriculture. By focusing on technological advancements that promote sustainability and operational efficiency, the company continues to deliver measurable value to farming professionals worldwide.

Craig Churstain, Sales Manager, Trelleborg Tires, said, “Optimising tyre pressure between field and road applications is one of the most effective, yet often overlooked, ways to boost farm efficiency. Lower pressure in the field means less soil compaction and healthier crops. On the road, it ensures better fuel efficiency and longer tyre life. It’s about getting the most from every working hour. Farmers today are under constant pressure to do more with less. Our mission is to provide tyre solutions that not only perform in the toughest conditions but also support a more sustainable and profitable farming model.”

For the second year running, CHIMEI Corporation has secured the prestigious Platinum rating from EcoVadis, placing it in the top one percent of 150,000+ global companies evaluated for sustainability performance. This recognition reflects CHIMEI’s excellence across environmental stewardship, labour practices, ethical operations and sustainable procurement.

The EcoVadis assessment, a gold standard for corporate sustainability, has seen growing participation and stricter criteria as ESG awareness rises worldwide. CHIMEI demonstrated particular progress in 2025, advancing its Sustainable Procurement score through platinum-level Responsible Business Alliance (RBA) certification. This strengthened supply chain oversight, workplace safety standards and employee welfare initiatives. The company also elevated its Ethics performance via ISO 27001 information security and ISO 37001 anti-bribery certifications, reinforcing governance transparency.

Since joining EcoVadis evaluations in 2021, CHIMEI has systematically enhanced its sustainability framework through continuous strategy reviews and operational improvements. Back-to-back Platinum ratings validate its leadership in sustainable business practices and commitment to the ‘Clean & Green’ vision. Moving forward, CHIMEI will intensify efforts in carbon reduction, eco-innovation, and supply chain collaboration to accelerate progress towards net-zero goals. This achievement not only recognises current performance but also fuels the company’s drive to set new benchmarks in responsible corporate citizenship.