• Domestic tyre volume growth to slow to 4-6 percent in FY2025 due to a high base and subdued commercial vehicle demand.
• Replacement market to remain stable, supporting overall volume expansion.
• Tyre exports to see low single-digit growth after contracting in FY2023.
• High natural rubber and crude oil prices to squeeze margins by 200-300 basis points in FY2025.
• Investments in new capacity to be moderate due to adequate existing capacity and a modest demand forecast.
• Focus on debottlenecking, digitalisation, and R&D for sustainable and smart tyres.
• Organised tyre retreading to grow at a CAGR of 7-9 percent on rising environmental focus and government support.

Domestic Growth to Ease

According to ICRA, India's tyre industry is expected to moderate domestic volume growth in FY2025 due to a high base effect and subdued demand from the commercial vehicle segment. However, healthy replacement market demand and growth in original equipment manufacturer (OEM) sales for passenger vehicles and two-wheelers are expected to partially offset this slowdown.

Nithya Debbadi, Assistant Vice President and Sector Head, ICRA, said: “Tyre exports are expected to remain moderate in the near term because of muted demand growth in key export destinations, namely the US and Europe. Further, supply chain issues arising from the Red Sea crisis have raised freight costs (resulting in increased cost of tyre) and elongated transit times. In terms of domestic factors, despite an elevated base, consumer segments are expected to record a mid-single digit growth (PV at 4-6 percent, 2Ws at 5-7 percent), on the back of healthy underlying demand. However, growth in the CV segment is expected to be impacted by the brief pause in infrastructure activities because of the Parliamentary Elections, with the Model Code of Conduct, which is in force because of the Parliamentary elections, and the impact of high base. Tractor demand growth is expected to be supported by the forecast of above normal monsoons, aiding rural cash flows.”

ICRA expects the replacement market, which contributes to over two-thirds of the industry volumes, to remain stable, aided by healthy demand across the segments. Tyre export volumes, which contribute approximately 25 percent of the industry’s sales (by value), are estimated to have recorded a low single-digit growth in FY2024 after contracting by around seven percent in FY2023, owing to demand shrinkage in key markets amid inflationary pressure and higher interest rates.

 “After a strong growth in two consecutive years, the tyre industry’s revenue growth (consolidated for ICRA’s sample set of seven leading tyre manufacturers) is estimated to have moderated to mid-single digits in FY2024 with estimated domestic volume growth of 6-8 percent, flattish realisations and subdued exports. For FY2025, the industry revenues are expected to grow by 5-7 percent, primarily driven by domestic OEM and replacement segments,” added  Debbadi.

Margins to Contract on Rising Input Costs

Indian tyre companies' operating margins, which soared to 15-17 percent in FY2024 on the back of favourable raw material prices, are expected to take a hit in FY2025. This comes after a sharp increase in input costs since January 2024.

Global supply shortages triggered by adverse weather in Southeast Asia, a key natural rubber (NR) producing region, have caused international NR prices to jump 25-30 percent in the past four months. The RSS3 grade, a benchmark NR type, is currently trading around INR 185-186 per kg, with domestic prices mirroring this rise due to India's reliance on NR imports. This, coupled with increasing crude oil prices, is likely to squeeze tyre industry margins by 200-300 basis points in FY2025, according to ICRA.

Focus on Efficiency and Sustainability

With existing capacity utilisation at 75–85 percent, investments in new plants are expected to be moderate. The industry will likely shift towards debottlenecking existing facilities, process improvements, digitalisation, and research and development (R&D) for sustainable and smart tyres with lower rolling resistance and improved safety features.

Growth in the Retreading Segment

Rising environmental concerns and government initiatives are expected to drive the organised tyre retreading market at a CAGR of 7-9 percent during FY2023–FY2026. Focusing on sustainable practices, improved technology, better road infrastructure, and increasing radialization in the commercial vehicle segment will support this growth.

Credit Metrics to Remain Comfortable

Despite the expected margin contraction, the industry's credit metrics are forecast to remain healthy due to ongoing profitability and moderate capital expenditure plans. The industry is expected to continue investing 6–9 percent of its revenue in capex during FY2025.

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This week marks the return of Kumho Tire USA to competitive off-road racing during a premier event in California’s Johnson Valley. Three experienced drivers – Stephen ‘Woody’ Rose Jr, Eric Wikle and Mark Duval – will compete in a challenging contest that blends high-speed desert runs with demanding rock crawling. Their vehicles will be equipped with the company’s LT-rated KUMHO Road Venture MT71 mud-terrain tyre, putting its rugged capabilities to a severe real-world test.

The drivers bring a wealth of proven skill to the race. Stephen ‘Woody’ Rose Jr is a veteran American off-road racer and past champion of this very event. Eric Wikle arrives with a reputation built on podium finishes, showcasing expertise in both technical crawling and desert racing. Rounding out the team is Mark Duval, an accomplished amateur racer and fabricator known for his success in rock crawling and off-road motorcycling.

The tyres supporting them are engineered for extreme conditions, designed to meet the needs of both professional racers and everyday adventurers. Key to their performance is a high-void tread pattern with a specialised zig-zag and dual-pitch design, aimed at delivering maximum off-road traction. Construction features such as increased block stiffness enhance handling both on and off the pavement. Additionally, integrated mud and stone ejector bars help protect the tyre from damage and promote self-cleaning in muddy environments. Through this combination of technologies, the MT71 aims to provide improved durability, off-road grip and confident on-road manners.

Ed Cho, CEO, Kumho Tire USA, said, "We are thrilled to return to off-road racing in the US and showcase our 'Performance Without Compromise' brand motto in action. This month's participation in the California desert event marks the beginning of Kumho Tire's growing involvement in off-road motorsports and reinforces our commitment to high-performing light truck products."

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Apollo Tyres Ltd has introduced its new brand campaign, ‘Har Safar Mein Dum Hai’, with legendary cricketer Sachin Tendulkar as its guiding presence. The initiative, launched in Apollo’s capacity as the Lead Sponsor of the Indian Cricket Team, also features Team India stalwarts Virat Kohli, Rohit Sharma, KL Rahul, Shubman Gill and Arshdeep Singh. Anchored by a poignant brand film, the campaign draws a powerful parallel between the enduring spirit of Indian cricket and the core ethos of Apollo Tyres.

Directed by renowned filmmaker Abhinay Deo and set to the moving strains of A R Rahman’s iconic music, the film traces the arduous childhood journeys of the featured cricketers. It pays tribute to the extraordinary sacrifices made by their families, all fuelled by national pride, to transform youthful dreams into reality. The narrative honours not merely the aspiration to represent India but the exacting standards, discipline and resilience required to earn and uphold that privilege.

It vividly captures their metamorphosis from hopeful children into athletes who now bear the weight of a billion hopes on the world stage – an achievement realised not by talent alone but through a lifelong pledge to be the best. Tendulkar, serving both as brand ambassador and a symbol of enduring legacy, represents the inspirational values and benchmarks that have defined Indian cricket for generations, connecting the past’s glory to the present’s pursuit of excellence.

Neeraj Kanwar, Vice Chairman and Managing Director, Apollo Tyres Ltd, said, “This campaign reflects a core belief at Apollo Tyres that excellence is built through resilience, discipline and consistency. Har Safar Mein Dum Hai is our tribute to the Indian spirit, and to the unyielding commitment it takes to be the best at what you do.”

Simran Kanwar, who wrote the script and screenplay along with conceptualising the Ad film, said, “Har Safar Mein Dum Hai is not just about beginning a journey, it is about the relentless pursuit of excellence. It may be the only ad film to bring together some of the world’s finest sportsmen from a single sport into one film, set to Maa Tujhe Salaam, our cricket anthem. Together, these elements make the film truly iconic, capturing the spirit, pride and standards that define greatness at a global level.”

Devajit Saikia, Secretary, Board of Control for Cricket in India (BCCI), said, “This film authentically captures the spirit of Indian cricket. It reflects the hard work, sacrifice and endurance required to represent the country at the highest level. The BCCI is proud to partner with Apollo Tyres, a brand that understands the importance of nurturing talent and celebrating the journey from grassroots ambition to world class mastery.”

Udyan Ghai, Group Head – Marketing, Apollo Tyres Ltd, said, "The campaign is a strong articulation of Apollo Tyres’ brand philosophy, reinforcing its positioning around performance, endurance and reliability across its product portfolio. Drawing parallels with Indian cricket’s journey from India to the world, the film reflects Apollo Tyres’ own evolution as a global brand while strengthening its emotional connection with consumers.”

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A new joint venture, UniPyrum, has been established by Pyrum Innovations AG and the independent tank farm operator UNITANK Holding GmbH, with the ambition to build a European network for processing end-of-life tyres. Based in Hamburg, the venture will be managed by a dedicated team overseeing the expansion of multiple advanced recycling facilities. The initial blueprint calls for the development of five to 10 such plants across strategic European locations, beginning with several sites in Germany.

Each new facility will feature a modular setup, starting with a minimum of three modern thermolysis reactors. This configuration allows a single site to process at least 22,000 tonnes of scrap tyres annually, with the flexibility for future capacity increases based on local demand. For the launch, three initial target regions have been selected, with comprehensive preliminary work on engineering and business planning already completed. A UNITANK facility in Emleben, Thuringia, is under strong consideration as the first operational location, and the partners are preparing to initiate approval processes imminently.

UNITANK, which holds a 51 percent majority stake in the partnership to Pyrum’s 49 percent, is actively securing the venture’s commercial foundations. This involves concurrent negotiations to establish reliable supply chains for feedstock tyres and to secure offtake agreements for the recycled output. The collaboration combines Pyrum's proprietary technology with UNITANK's industrial logistics expertise to accelerate the rollout of this recycling infrastructure.

Jan Vogel, CEO, UNITANK Group, said, “We are delighted to take a decisive step forward in our longstanding and trusting partnership with Pyrum by establishing this joint venture today. In addition to our core business in the tank storage sector, this creates a new business area with strong growth potential that is independent of the energy transition. The combination of Pyrum’s leading technology and our extensive experience in operating critical infrastructure in the energy sector opens up exciting opportunities for the future. The aim is for the new joint venture to rapidly develop and operate a network of used tyre recycling plants in Germany and neighbouring countries.”

Pascal Klein, CEO, Pyrum Innovations AG, said, “Since our initial memorandum of understanding with UNITANK, we have worked intensively together to further develop our partnership. We are delighted to reach this important milestone today. Following the positive funding approval in Greece and the recently signed shareholder agreement with SUAS, the founding of the joint venture with UNITANK represents the next important step in finally accelerating the construction and operation of new plants. UNITANK’s many years of experience in operating critical infrastructure and its diverse technical and logistical expertise complement our technology perfectly. Together, we are significantly increasing Europe-wide recycling capacity for end-of-life tyres and actively promoting the circular economy.”

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Sri Trang Agro-Industry Public Company Limited (STA), under the leadership of Executive Director Chalermpop Khanjan, has entered a strategic partnership to advance sustainability through innovation. The company participated in a ceremony to sign a Memorandum of Understanding (MOU) with Chiang Mai University and five other leading industrial sectors. This collaboration is dedicated to promoting the development of knowledge, research and innovation, firmly aligning with STA's commitment to sustainability and its core Environmental, Social, and Governance (ESG) values.

The partnership’s specific objectives include advancing joint research, supporting specialised training programmes and strengthening collaborative networks to directly address climate change. A key focus is the transfer of technology and environmental innovations, including climate adaptation solutions, to be applied across business, government and community sectors to drive tangible, shared learning. This initiative reinforces STA’s mission to generate long-term value for all its stakeholders, including farmers, local communities, customers and consumers.

Concurrently, an industrial panel discussion titled ‘Innovations Toward Industrial Sustainability’ was held. Dr Saranthinee Mongkolrat, Sustainability Division Manager at STA, delivered a presentation on ‘Carbon-Smart Natural Rubber: Turning Plantations into Long-Term Carbon Sinks’. Her session underscored the critical role of natural rubber plantations in carbon sequestration and their contribution to a more sustainable industrial future.

Through this integration of expertise, technology and cross-sector collaboration, Sri Trang Group continues to drive its long-term sustainability mission. The Group is committed to consolidating its position as a global leader in the green natural rubber industry, thereby fostering balanced growth and supporting sustainable development on both a national and international scale.

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