Dr Sawar Dhanania, Chairman of the Rubber Board, expressed optimism about the growth in both production and consumption of natural rubber (NR) in the Indian plantation sector. At the 185th meeting in Kottayam, he acknowledged the challenges such as price volatility, climate change, market issues, and labour shortage. Dr Dhanania emphasized the need for grassroots-level solutions to ensure sustainability and profitability.
“The efforts of the Rubber Board and the timely interference in disease control, adoption of rubber holdings for harvesting, formation of Rubber Tapper Groups (RTGs), etc., have resulted in the augmentation of NR production in the country. But, many challenges, including volatilities in rubber prices, climate change, market issues, labour shortage, etc., continue in the rubber sector. We need to find suitable solutions at the grassroots level to make the plantation sector more sustainable and profitable. In the present scenario, Rubber Producers’ Societies (RPSs) need further improvement in their governance and activities to face the various challenges in the rubber plantation sector. RPSs should become self-sufficient in their activities. The concept of Farmer Producer Organizations (FPOs) in the RPS sector is a viable suggestion to experiment with in the coming days, Dr Dhanania said.

M Vasanthagesan IRS, Executive Director of the Rubber Board, provided an overview of the Indian NR sector. He reported an 8.3 percent growth in NR production, totalling 839,000 tonnes in 2022-23, with an average yield increase to 1,482 kg/ha. Domestic NR consumption reached a record high of 1,350,000 tonnes, reflecting a 9 percent increase from the previous year. The auto tyre sector saw a 4.8 percent growth, while the general rubber goods sector experienced a substantial 20.4 percent growth.

Auto-tyre manufacturing accounted for 70.3 percent of NR consumption in 2022-23. Projections for 2023-24 estimate NR production at 875,000 tonnes and consumption at 1400,000 tonnes. The Board commended the Union Government for increasing the import duty on compounded rubber to align with NR.

Additionally, the Committee recommended ensuring that the Rubber Production Incentive Scheme of the State Government reaches all small growers. The Rubber Board held meetings covering Staff Affairs, Strengthening of RPSs, and Research and development.

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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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