Another aggravating factor is the disruptions in supply chain due to Covid-19. Consequently, oil prices are at a seven-year high. Natural gas prices have nearly doubled in six months. Petrol prices in many locations are north of USD 4 a gallon. Cotton prices are up 25 percent since last month. Food prices have been rising steadily for the past few months. Not until the recent news stories about brownouts in China, very few people were aware about the steady ascent of coal prices, past USD 100 per metric tonne in June and then past USD 130 in mid-July to over USD 170 in early October. This is almost four times the price in September 2020!

So far, the U.S. Federal Reserve Bank has maintained that this inflation is transitory, but many experts believe otherwise.

Tyre Segment Not Immune To Inflation

The global tyre market reportedly sold more than 2 billion tyres in 2020, and is projected to grow to more than 2.7 billion tyres sold annually by the year 2026.

One large independently-owned tyre retailer urges buyers not to put off purchasing new tyres, as prices for tyres and vehicle parts have been trending up for the last several months, in part due to rising commodity costs and supply chain interruptions caused by Covid-19. These increases have shown no signs of levelling off.

“We have tracked as many as 20 price increases from 10 major tyre manufacturers,” said Jake Burt, owner of Burt Brothers Tires & Service in State of Utah. And the price hikes aren’t just limited to tyres. “We are also seeing prices climbing for parts, so we’re urging customers needing repairs to get those taken care of now rather than paying more for parts in the future — or having to wait longer than usual to get those parts.”

Burt said that his dealership is working overtime to beef up their inventory ahead of more changes. “We order every day and are doing everything to fill trucks and get them in our warehouse and to our stores so we can shield our customers from future increases.”

The Goodyear Tire & Rubber Co will increase consumer tyre prices for the fourth time in less than a year. Goodyear raised its tyre prices twice within a short window of time, first in December 2020 and then again in April 2021. The next increase went into effect in September 2021. Goodyear Chairman, CEO and President Rich Kramer told investors during the latest earnings call that consumer tyre prices will increase up to eight percent with this latest pricing action. The action will cover passenger and light truck tyres from both Goodyear and the recently acquired Cooper Tire and Rubber Co.

These price actions are also the result of the rising cost of raw materials like natural rubber and oil, used to make butadiene and carbon black for synthetic rubber. These materials make up more than 30 percent of the cost to manufacture a tyre, and their prices have already surpassed pre-Covid levels and continue to rise steadily. Goodyear predicts its cost of raw materials used for tyres will rise by about USD 175 million in 2021.

On a personal level, my trusty old mountain bicycle, purchased for about USD 50 in mid-1990s, needed a replacement tyre. No tyres were available during the height of the pandemic, but are now becoming available at few outlets, provided you are willing to part with about USD 25 – half the cost of the bicycle!

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JK Tyre & Industries Ltd. has formally completed the merger of its subsidiary, Cavendish Industries Ltd., into its operations, a strategic move that follows Cavendish's acquisition in 2016. At that time, Cavendish was operating at only 30 percent of its manufacturing capacity for various vehicle tyres. Under JK Tyre's stewardship, the subsidiary received extensive managerial, financial and technical support, which facilitated a complete operational turnaround. Through optimised manufacturing processes, capacity utilisation dramatically increased to 95 percent. Additional expansion at the Laksar facility further bolstered its substantial contribution to the company's overall tyre production.

This consolidation is projected to generate significant value by combining operational strengths, achieving greater economies of scale, and creating a more robust and diversified product portfolio. The unified entity will also benefit from an extensive, integrated distribution network. The merger aligns with JK Tyre's enduring strategy of pursuing sustainable growth through both organic projects and strategic acquisitions. Cavendish’s successful integration represents the company’s third major operational turnaround, following previous revitalisations of Vikrant Tyres and JK Tornel Mexico, alongside the establishment of two Greenfield plants.

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Hankook Tire has further solidified its commitment to sustainable manufacturing with the recent International Sustainability & Carbon Certification (ISCC) PLUS awarded to its Daejeon plant. This globally recognised certification validates the use of bio-based and recycled materials and ensures supply chain transparency, representing the company’s third such achievement following earlier certifications at its Geumsan and Hungary facilities. At the Daejeon site, the substitution of fossil-based synthetic rubber with bio-circular polymers has substantially lowered the environmental impact across the entire product lifecycle.

This milestone reinforces Hankook Tire’s comprehensive ESG strategy, which now encompasses original equipment, replacement and motorsport tyre production. A notable example is the supply of high-performance rally tyres, incorporating up to 31 percent sustainable materials, for the 2025 FIA World Rally Championship. The company’s sustainable innovation is also evident in products like the iON evo tyre for the Porsche Taycan, which uses 45 percent recycled and recyclable materials without compromising performance. Similarly, the iON GT replacement tyre for the European market integrates up to 77 percent certified materials and has earned top EU Tyre Label ratings.

Beyond product development, Hankook Tire is pioneering future mobility solutions, showcased by a concept tyre with 81 percent sustainable materials presented at IAA Mobility 2025. In electric motorsport, as the exclusive tyre supplier for Formula E, the company has earned the FIA’s highest environmental accreditation and is set to introduce the iON Race tyre containing 35 percent sustainable materials.

To accelerate these efforts, Hankook Tire is pursuing open innovation through collaborations with technology partners such as ROTOBOOST and Solvay, focusing on advanced materials like turquoise hydrogen-based carbon black and circular silica. The company is also engaged in national research consortia to validate carbon-reduction technologies and enhance the commercial readiness of sustainable alternatives, consistently aiming to merge high performance with ecological responsibility across its global operations.

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Bridgestone India has reconstructed and revitalised the government school in Kuti village, near the National Automotive Test Tracks (NATRAX) in Madhya Pradesh, under its Corporate Social Responsibility (CSR) initiative. The project directly serves a marginalised community of tribal groups and migrant labourers from states like Uttar Pradesh and Bihar. Previously, the school operated in a perilous and crumbling structure, lacking even basic facilities for its 175 students, despite the steadfast efforts of three teachers. The new, purpose-built campus now provides structurally safe and vibrant classrooms, dedicated child-friendly spaces and access to essential amenities.

This transformation is set to dramatically improve student enrolment and daily attendance by replacing a hazardous environment with one that is secure and conducive to learning. More than just infrastructure, the initiative instils a renewed sense of dignity and aspiration in both students and their families, who work primarily as daily-wage labourers, vegetable vendors and construction workers.

Executed in collaboration with the district administration and education department, this effort reflects Bridgestone India’s core mission of driving long-term social impact through strategic community partnerships. By focusing on critical gaps in educational infrastructure for displaced and underserved populations, the company fosters an environment where children can truly thrive and communities can build a more hopeful future.

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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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