• 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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Zeon has confirmed its role as an official sponsor of RubberCon 2026, scheduled for 28 and 29 April in Paris. The conference is organised by AFICEP under the aegis of IRCO. The event will centre on the theme ‘Ecodesign and Rubber Innovation’, serving as a gathering for global experts spanning academia, research, manufacturing and technology sectors. This focus reflects the industry’s growing emphasis on sustainable material development and circular economy principles.

Through its sponsorship, the company underscores its commitment to sustainable solutions, innovation and international knowledge exchange. Zeon anticipates engaging with industry professionals to explore new approaches and contribute to meaningful sector progress.

“By sponsoring RubberCon 2026, we reaffirm our commitment to driving forward sustainable solutions, fostering innovation and supporting the international exchange of knowledge and best practices. We look forward to engaging with industry professionals, discovering new approaches and contributing to meaningful progress within our sector,” read the company statement.

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Maxxis Rubber India has been presented with an Appreciation Award from the Ahmedabad Rural Police in recognition of its support during VIP movements. The accolade was conferred by Superintendent of Police Om Prakash Jat, acknowledged for his role in fostering community safety and collaboration through his leadership.

Guided by its core principles of respect, care and appreciation, the company emphasises its commitment to quality, service and trust alongside cooperation with authorities. Expressing gratitude to the police department for acknowledging its efforts, Maxxis stated that the honour reinforces its dedication to integrity and public safety partnerships, motivating the organisation to continue contributing with the same unwavering commitment and a focus on building stronger, more resilient communities every single day forward together.

“At Maxxis, our core values – respect, care and appreciation – drive us beyond business. Whether ensuring 100 percent quality, service, trust in our products or standing alongside authorities for public safety, we believe strong partnerships build stronger communities. We sincerely thank the Police Department-Ahmedabad Rural Police for acknowledging our ‘unwavering support’ and ‘invaluable cooperation’. This honour motivates us to continue contributing with the same commitment and integrity,” the company acknowledged in a social media post.

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The organisers of the International Rubber Conference 2026 have opened exhibitor applications for the accompanying Rubber & Elastomer Technical Exhibition, with discounted early-bird rates available until 30 April 2026.

The conference will take place from 2 to 6 November at the Aichi International Exhibition Center (Aichi Sky Expo), bringing together global scientists, engineers and industry stakeholders working across rubber and elastomer technologies.

Exhibitors submitting applications by the April deadline will benefit from reduced participation fees. The final deadline for regular applications is 15 July 2026.

Held alongside the conference from 3 to 6 November, the exhibition is expected to attract more than 4,500 visitors and is regarded as one of the leading international platforms for showcasing advances in rubber science, materials engineering and industrial applications.

IRC 2026 marks the sixth edition hosted in Japan, following previous conferences in Tokyo, Kyoto, Kobe, Yokohama and Kitakyushu. Under the theme “Future Rubber Technology toward Sustainability”, the event aims to address evolving industry demands, particularly as Asia accounts for a growing share of global rubber production and consumption.

Organisers said the event will provide a platform not only for established players but also for emerging engineers and researchers to engage with international experts, fostering collaboration and technological advancement across the sector.

Applications and further details are available via the official conference website.

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Tegeta Green Planet, in partnership with the Wasteless specific waste management association, hosted the Georgia Rubberized Asphalt Summit (GRAS) 2026 in Tbilisi. This international conference was designed as a platform for exchanging global knowledge on sustainable road infrastructure and rubber-modified asphalt technologies, bringing together industry leaders and international experts to examine both the challenges and opportunities within the sector. A dedicated panel discussion formed a central part of the event, fostering in-depth dialogue among participants.

Despite being widely adopted in United States, Portugal, Spain and across Europe for over six decades, rubber-modified asphalt remains unused in Georgia. This technology offers significant advantages over conventional pavement, including a service life of 8 to 10 years, superior resistance to water damage, reduced noise pollution and a substantial decrease in environmental harm caused by automotive waste. The summit’s organisers aim to address this gap by promoting responsible waste management and raising public awareness about the dangers of unprocessed refuse.

More than a forum for knowledge exchange, the summit served as a call to action, underscoring Georgia’s potential to become a regional frontrunner in sustainable infrastructure. Tegeta Green Planet, a subsidiary of Tegeta Holding established in 2022, was among the first companies in the country authorised by the Ministry of Environment and Agriculture to recycle used tyres, oils and batteries under extended producer responsibility principles. The organisation operates by collecting specified waste types, managing their transport and recycling and ultimately processing these materials in line with circular economy models, thereby supporting the nation’s shift towards innovative green initiatives.

Ekaterina Kavtaradze, CEO, Tegeta Holding, said, “For Tegeta Holding, sustainable development is one of the most important principles of our operations, which is reflected in concrete solutions. I am delighted that Georgia has had the opportunity to host such a large-scale event. GRAS 2026 demonstrates that the circular economy can become a real economic priority in Georgia as well, bringing significant benefits to the country, as waste is transformed into a resource, creating economic advantages and reducing the negative impact on the environment.”

Shalva Akhvlediani, Director, Tegeta Green Planet, said, “Georgia is at a stage where infrastructure decisions can shape the economic and environmental outcomes of the next generation. This summit provides us with a unique opportunity to learn from the world’s leading countries and implement these lessons at the local level. Overall, the circular economy is the way forward: it allows us to transform waste, such as used tyres, into a useful resource, ensuring economic stability, environmental protection and sustainable development.”

Giorgi Guliashvili, Chairman, Wasteless, “Our goal is to implement a fully circular model in Georgia – from waste collection to recycling and the effective use of recycled materials. Starting this autumn, Georgia will launch its first high-tech tyre recycling plant, which will process used tyres collected throughout the country. Using recycled rubber in asphalt is a clear answer to the question of how the resulting raw materials are utilised. As a result of the plant’s launch, we estimate that we will produce up to 12–15 thousand tonnes of rubber crumb per year, which will allow us to use this material locally to build more durable and environmentally friendly roads. This will bring significant benefits to both the environment and the economy.”

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