• 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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Sri Trang Agro-Industry Public Company Limited (STA) has been named a Sustainability Yearbook Member in the Auto Components category for the first time. The recognition took place on 11 May 2026 at the S&P Global Sustainability Yearbook Distinction Ceremony hosted by S&P Global at the Eastin Grand Hotel Phayathai, where Thai companies featured in the Sustainability Yearbook 2026 were celebrated. From over 9,200 firms assessed in the 2025 Corporate Sustainability Assessment (CSA), only 848 earned Yearbook membership.

STA’s inclusion highlights its strengths in the Social Dimension, particularly human rights, occupational health and safety and employee development. Environmentally, the company has committed to achieving net zero greenhouse gas emissions by 2050, with a short-term target of reducing Scope 1 and 2 emissions per product unit by 10 percent by 2026, compared to the 2021 baseline.

The S&P Global assessment reaffirms STA’s leadership in the integrated rubber industry under its Sri Trang Green Rubber vision. The company drives product quality while managing environmental, social, governance and emerging risks, thereby creating stakeholder value and strengthening trust among partners and consumers.

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American tyre brand General Tire has released a new all-season tyre aimed at drivers who refuse to compromise between on-road precision and off-road toughness. The Grabber Cross A/S achieves this balance by marrying an unusually stiff tread pattern with a rubber mix explicitly formulated to resist cutting and chunking on harsh terrain.

For drivers who spend time on rocky or uneven terrain, the tyre’s hexagonal tread blocks deliver grip through sharp biting edges, while chamfered groove edges further boost off-road traction. A highly resistant crossover compound protects against tread damage on rough ground. Meanwhile, transverse and longitudinal sipes carved into the blocks provide wet and snowy road grip, and an open shoulder design rapidly channels water away to prevent aquaplaning. On dry roads, internal support elements between the blocks create an extra-stiff tread that distributes pressure evenly, allowing precise steering and sustained high-speed running without sacrificing mileage. Importantly, that stiffness does not come at the cost of comfort, as the tyre also delivers low rolling noise and a smooth ride.

Certified for winter use, the Grabber Cross A/S carries both the M+S marking and the three-peak mountain snowflake symbol, the latter being mandatory in Germany and France since 2024. General Tire offers the model in 44 sizes spanning 16 to 22 inches in diameter, with top speed approvals reaching 240 kmph depending on the size. The tyre fits a broad range of two- and four-wheel-drive vehicles, including popular SUVs such as the VW Tiguan, KIA Sorento, Ford Kuga, Mazda CX 90 and Volvo XC90. An ‘EV Compatible’ sidewall logo also confirms its readiness for electric vehicles.

The Grabber Cross A/S is now reaching dealer shelves and service centres. According to the EU tyre label, this all-season 4x4 tyre earns a rolling resistance rating of C or D, a wet grip score of C and a B classification for rolling noise – positioning it as a versatile option for SUV and EV owners who want one tyre for all seasons.

Matthias Bartz, Business Development Manager for General Tire in Europe, the Middle East and Africa, said, "The Grabber Cross A/S is General Tire's entry into a new product segment. The tyre is designed for high speeds on fast roads but also offers excellent off-road performance in challenging terrain. With our extensive size portfolio, we can offer tyres for about 85 percent of the most popular crossover SUVs.”

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Portronics has launched a compact portable tyre inflator named the Vayu Nano, designed specifically to address the space constraints faced by bicycle and motorcycle commuters. Weighing just 185 grammes, the device easily fits into a jacket pocket, small bag or scooter storage compartment. Its matte-black finish and short 7.5-centimetre air hose make it suitable for two-wheelers and minor pressure top-ups rather than inflating car tyres from scratch.

The Vayu Nano delivers up to 120 PSI, sufficient for motorcycles requiring around 45 PSI, bicycles needing approximately 35 PSI and standard sports balls. It can fill a tyre from zero to 35 PSI in under five minutes. A digital display shows pressure in PSI or BAR alongside a battery indicator, while preset modes for various inflatables and a manual custom setting are included. An auto shut-off function stops the device once the target pressure is reached to prevent over-inflation.

Power comes from a dual 600 mAh battery setup with USB-C charging, allowing use with existing phone chargers or power banks. A built-in LED light features an SOS mode for low-light conditions. Priced at INR 4,999, the Vayu Nano is available at a launch price of INR 2,999. It comes with a 12-month warranty and can be purchased through the company’s website or at ecommerce websites and standard offline stores.

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Hankook Tire has secured the International Sustainability & Carbon Certification (ISCC) PLUS for its Jiaxing Plant in Zhejiang Province, China. This globally recognised voluntary certification verifies the sustainability of bio-based and recycled materials while ensuring full supply chain transparency. The certification imposes strict verification standards across every stage, from raw material sourcing and manufacturing to the final product output.

The Jiaxing facility’s achievement marks the company’s fourth ISCC PLUS certification. Hankook first earned the distinction for its Geumsan Plant in 2021, becoming the first in the tyre industry to do so. The Rácalmás Plant in Hungary followed in 2023, and the Daejeon Plant received certification in 2025. With this latest addition in China, Hankook has significantly expanded its sustainable manufacturing network across both Asia and Europe.

The Jiaxing Plant has enhanced its production capabilities by increasing the use of sustainable materials and optimising processes. It has established a stable system for products incorporating bio-based and recycled inputs, operating a quality management system based on the mass balance approach. Under its circular economy strategy named E.Circle, Hankook continues to raise the share of sustainable materials. For example, the iON evo tyre, supplied as original equipment for the Porsche Taycan, contains around 45 percent sustainable materials, while the iON GT for the European replacement market has raised that share to up to approximately 77 percent.

Hankook is also applying sustainable materials to tyres used in the FIA World Rally Championship and the ABB FIA Formula E World Championship, reinforcing its technology leadership in global motorsports. Through open innovation with global partners, the company is advancing low-carbon raw materials. Its sustainability efforts have earned it inclusion in the Dow Jones Sustainability Indices World and the highest EcoVadis rating. Looking ahead, Hankook plans to transform the Jiaxing Plant into a key sustainable manufacturing hub in China while continuously upgrading production systems across its global facilities to strengthen supply chain sustainability and ESG competitiveness.

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