A tyre being retreaded

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.

Goodyear highlighted progress at its Amiens tyre plant modernisation during a visit by French President Emmanuel Macron. The facility, which first opened in 1958, is undergoing a major transformation launched in 2022 and supported by the French government’s France 2030 programme. This investment aims to strengthen the site’s long-term competitiveness and future readiness.

Nearly 800 employees work at the Amiens plant, producing consumer tyres for global original equipment and replacement markets. Beyond technology, the overhaul emphasises workforce development through expanded training, upskilling programmes and active recruitment for roles ranging from operators to engineers. These efforts are designed to align the site’s evolution with new technologies while preparing a skilled workforce for the future.

Mark Stewart, Chief Executive Officer and President, The Goodyear Tire & Rubber Company, said, “We’re proud to welcome President Macron to Amiens and show the progress our team has made. Over the past several years, we’ve reshaped this plant – bringing in more advanced technologies, increasing automation and digital solutions to shift its production towards premium, higher-value tyres. This modernisation is about our people and the future of the Amiens facility. Together with the French government, we’ve strengthened this site and built on Goodyear’s longstanding presence in France, reinforcing our commitment to manufacturing and jobs here.”

The Tire and Rubber Association of Canada (TRAC) has recognised outstanding individuals and organisations for their leadership and contributions to the tyre and rubber industry, including end-of-life tyre management and broader sustainability efforts. The awards were presented on 4 June 2026, following the association’s annual general meeting at the Alt Hotel Toronto Airport in Mississauga.

The 2026 Industry Leadership Awards honoured achievements in three categories: Lifetime Achievement, Sustainability and Young Leader. The ceremony highlighted a range of innovations, from circular economy advancements to operational excellence and community-focused initiatives.

Receiving the Lifetime Achievement Award was Emmie Leung of Emterra Group. Over five decades, she grew a single-person start-up into one of Canada’s largest integrated resource management companies. In 2005, she founded Emterra Tire Recycling, which became a leading supplier of crumb rubber and recycled tyre materials, significantly advancing responsible tyre management nationwide. Beyond business growth, she introduced a formal diversity, equity and inclusion strategy and the Community Care programme, supporting charitable partnerships and environmental awareness.

In the Sustainability category, TRAC recognised three recipients. Dr Marcela Castano of Bridgestone led the implementation of ISCC Plus certification across 15 manufacturing facilities, integrating certified mass balance into operations and strengthening market confidence in sustainable materials. Reliable Tire Recycling was honoured for transforming end-of-life tyres into valuable products through proprietary machinery and research partnerships with the University of Manitoba, focusing on energy efficiency and waste reduction. Muhammad Shah of eTracks Tire Management Systems was recognised for his collaborative, solutions-focused work supporting service providers and ensuring responsible recovery streams across Ontario.

The Young Leader award went to three professionals. Paul-André Gaudreault, plant manager at AirBoss of America, oversees complex rubber production processes and has strengthened operational consistency since joining the company in 2013. Paresh Kulkarni of Kal Tire manages Canada’s only commercial rubber devulcanisation line, helping scale operations across North America, Latin America and Europe. Tyler Scott of Nokian Tyres has built a 26-year career spanning sales, technical service and training, managing national accounts and securing early EV OEM fitments while earning an MBA.

All recipients demonstrated measurable impact in advancing circular economy principles, operational innovation or industry leadership. Their work continues to strengthen environmental outcomes and economic resilience within Canada’s tyre and rubber sector.

The annual awards underscore TRAC’s commitment to celebrating leadership that drives sustainable change. The association noted that the honourees reflect the growing importance of cross-sector collaboration in building a more circular tyre industry.

Carol Hochu, President and CEO, Tire and Rubber Association of Canada, said, “This year’s award recipients represent the strength and diversity of our industry. Across different roles and areas of expertise, they have demonstrated leadership, innovation and a strong commitment to advancing the sector. Their contributions are helping address complex challenges and support the long-term sustainability of our industry. Recipients are recognised across three categories: Lifetime Achievement, Sustainability and Young Leader.”

Dunlop Motorcycle Europe has emerged as the dominant force at the 2026 Isle of Man TT, securing more race victories and podium finishes than any other tyre manufacturer despite a weather-disrupted schedule that reduced the event to only five races. Riders using Dunlop tyres claimed three wins and nine podium appearances around the legendary Mountain Course.

Performance across the Supersport and Sportbike classes proved particularly strong, complemented by competitive pace in the Superbike races. The achievements highlighted the versatility and reliability of the latest generation of Dunlop KR slick racing tyres. Dunlop supported over 15 riders during the two-week event, offering multiple specifications of KR108, KR108+ and KR109+ tyres. A dedicated team of trackside support engineers provided ongoing advice on tyre selection for the challenging and ever-changing weather conditions.

The Isle of Man TT, which takes place on a 37.73-mile (approximately 60.72 km) public road circuit featuring narrow lanes and mountain passes, saw temperatures shift from warm sunshine during practice to cold, damp conditions on race days. Following his fourth-place finish in the Sportbike race, lap record holder Peter Hickman described it as the wettest he had ever experienced on the course. That changeable weather underscored the KR tyres’ adaptability, delivering both immediate pace and multi-lap durability.

Michael Dunlop extended his historic TT record by winning both Supersport races and the Sportbike race, while other Dunlop-supported riders consistently ran at the front. Peter Hickman recorded top-four finishes in every race, and both Josh Brookes and Ian Hutchinson placed inside the top five. Across all five races, Dunlop riders occupied 9 of 15 podium positions and 14 of 25 top-five spots. This success follows previous race wins at the North West 200 in May, with Dunlop KR tyres also recently in action at the FIM Endurance World Championship’s 8 Hours of Spa and the Dunlop Campionato Italiano Velocità event at Imola.

Wim Van Achter, Motorsport Manager, Dunlop Motorcycle Europe, said, “The Isle of Man TT is an event like no other, and rider confidence in tyres is crucial when facing a track like this at an average speed of 135 mph. To finish the week with more race wins and podium finishes than any other tyre manufacturer is a fantastic result and a testament to the performance and consistency of our latest generation Dunlop KR racing slicks. Michael Dunlop’s three wins were a highlight, but we’re equally proud to have supported so many riders running at the front throughout the event. Feedback from teams throughout the paddock was extremely positive, reinforcing the strength of a tyre range that continues to win in road and circuit racing across Europe.”

Michelin North America has announced the commercial expansion of its Michelin X Line Grip D commercial truck drive tyre lineup. Building on its 2025 market debut, the new range aims to meet fleet demand across long-haul and regional applications by introducing expanded new-tyre sizing alongside a matching pre-mould retread solution.

The backbone of the X Line Grip D ecosystem is the proprietary Michelin DURACORE casing, engineered specifically to withstand punishing commercial life cycles and maximise casing retreadability. It comes with up to 1.6 million kilometres casing life or up to 4 retread cycles.

By extending the structural life of the initial casing across multiple retread generations, the design aims to reduce the total cost of ownership (TCO) for commercial transport operations and minimise fleet tyre expenditures.

The new Michelin X Line Grip D pre-mould retread is manufactured using the exact compound chemistry and directional tread geometry found in the original, new tyre. This design replication ensures that secondary and tertiary life-cycle deployments maintain identical traction parameters and wear performance as the original tyre asset.

The tyre family features an advanced, directional chevron tread pattern paired with specialised rubber compounding to optimise heavy-duty rolling metrics. It is claimed to offer around 20 percent increase in total mileage when compared directly against the previous industry-standard Michelin XDN2 tyre. Engineered to register the lowest rolling resistance metrics when tested against leading tier-one competitor drive tyres. Lastly, it provides enhanced wet starting traction over major competitor products, maintaining its gripping performance whether the tread block is brand new or deeply worn down.

The expanded Michelin X Line Grip D tyre dimensions and the matching pre-mould retread lines are immediately available for order through authorised Michelin Commercial Service Centres and dealer networks across North America.

Yahn Heurlin, Vice-President – B2B Marketing, Michelin North America, Inc, said, “The expansion of the Michelin X Line Grip D lineup reflects our commitment to delivering unmatched performance across every mile of the tyre’s life. Fleets have validated the performance of the Michelin X Line Grip D tyre in real-world conditions, and now we are expanding that same trusted performance through an additional size offering and a retread solution engineered to deliver the same performance as the new tyre.”