JK Tyre achieved record revenue of INR 40.26 billion, driven by strong domestic demand and a strategic shift in export markets.

JK Tyre & Industries reported its highest-ever quarterly results, with consolidated revenue of INR 40.26 billion in Q2 FY2026. This performance was supported by double-digit volume growth in key segments and enhanced operational efficiency.

Profit after tax rose 54 per ent year-on-year to INR 2.23 billion, and EBITDA margins increased to 13.3 percent. This marks a significant turnaround for India’s tyre sector, which has faced volatile raw material costs and uncertain export conditions in recent quarters.

Domestic Market Powers Growth

Domestic volumes increased 15 percent, led by a 22 percent rise in truck and bus radial (TBR) tyre replacements. Passenger vehicle tyre replacements grew 16 percent, while the two- and three-wheeler segment saw exceptional growth of 155 percent.

“The demand has been very good. In fact, the demand is touching double-digit,” said Anshuman Singhania, Managing Director of JK Tyre, in a media roundtable. “We are seeing long hauls coming in because of better infrastructure. So demand is pretty good, and demand is going to be in a very steady trajectory going forward.”

The company attributed strong domestic results to GST rationalisation, improved monsoons supporting rural demand, and increased government infrastructure spending. Management also noted that dealer inventories have normalised, offering better visibility into true demand.

Strategic Export Pivot Pays Off

Despite uncertainty regarding US tariffs, JK Tyre increased export volumes by 13 percent quarter-on-quarter. The company has diversified its exports, with North America now accounting for only 3 percent of total revenue.

“We have diverted most of our exports from the US to other markets,” Singhania explained. The company has strengthened its presence in the Middle East, Europe, Latin America, and Brazil, whilst continuing to serve the US market through its Mexican manufacturing facility.

JK Tornel, the Mexico subsidiary, reported a 26 percent sequential increase in turnover to INR 6.39 billion, up from INR 5.05 billion in the previous quarter.

Premiumisation Strategy Takes Hold

JK Tyre’s focus on premium segments has driven margin improvement. Tyres with rim sizes of 16 inches and above now account for 27 percent of the passenger vehicle mix, up from 18 percent in FY2018.

This strategy aligns with market trends, as sport utility vehicles now make up about 65 per cent of India’s passenger vehicle market, requiring larger, higher-margin tyres. JK Tyre has expanded its premium range, including the Levitas brand and products like Puncture Guard, which have gained acceptance among OEMs and in the aftermarket.

“Our premium products like Levitas, innovative products like Puncture Guard have really got the fancy of our channel partners as well as some of the OEMs,” Singhania said. The company recently supplied 18-inch tyres for Hyundai’s Creta Night Edition, marking its deepening engagement with premium OEM specifications.

Sanjeeva Garwal, Chief Financial Officer, emphasised that the company is not abandoning value segments entirely. “We are not leaving the space in the non-premium segment, which is continuing because we have the capacity,” he noted, adding that new capacity expansions are specifically dedicated to premium and larger rim size tyres.

Capacity Expansion on Track

JK Tyre is investing INR 14 billion to expand capacity. New passenger car radial capacity will be fully operational by July 2026, with additional truck radial capacity set to begin in the fourth quarter of this fiscal year.

Radial tyre production is operating at over 90 percent capacity, and overall utilisation is 87 percent, indicating limited room for growth without expansion. Management is closely monitoring the market for potential future capacity additions.

The company manufactures tyres up to 22 inches in Mexico and 20 inches in India, positioning itself to meet increasing demand for larger sizes as vehicle premiumisation advances.

Raw Material Tailwinds Continue

Improved profitability has been supported by favourable raw material costs, which have declined from Q4 FY2025 through Q2 FY2026. Management expects this trend to continue for the rest of the year.

The company passed on the full benefit of GST rationalisation to consumers whilst maintaining pricing discipline. “Right now, in the second quarter, we have not increased any prices, and going forward, we are always assessing the competitive market because it is a dynamic market,” Singhania said.

Outlook and Guidance

JK Tyre expects to maintain double-digit volume growth for the year, even as the auto and tyre industries are projected to grow 6-7 percent. The company anticipates low single-digit growth in truck tyres, mid single-digit growth in truck radials, and mid-to-high single-digit growth in passenger car radials.

Management described the outlook for the second half as very positive, citing ongoing infrastructure investment, recovering rural demand, and normalised inventory levels across distribution channels.

While JK Tyre remains focused on four-wheeled applications, Singhania noted that the defence sector, which includes tyres for trucks, passenger vehicles, and armoured vehicles, accounts for a high single-digit share of revenue and offers growth potential as India’s defence procurement increasingly favours domestic suppliers.

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Toyo Tire Corporation said Mitsubishi Corporation has ceased to be a major shareholder after tendering its entire holding through a treasury share buyback, ending its status as the company’s largest shareholder.

The change took effect on 10^th August , 2026, following Toyo Tire’s acquisition of its own shares through off-auction trading (ToSTNeT-3). Mitsubishi tendered all its shares, excluding less than one unit, as part of the transaction.

As a result, Mitsubishi is no longer classified as a major shareholder or associated company of Toyo Tire, the company said.

Before the transaction, Mitsubishi held 30,822,206 shares, equivalent to 20.07 percent of total voting rights, and ranked as the largest shareholder. Following the change, its holding has effectively been reduced to zero.

The move follows Toyo Tire’s earlier announcement on August 7, 2026 regarding the termination of its capital and business alliance with Mitsubishi, alongside plans to repurchase its own shares.

Toyo Tire said the change would have no impact on its consolidated financial results.

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Linglong Tire has become the first Chinese tyre manufacturer to join the Global Data Service Organization (GDSO) as a full member, marking a step in the industry’s efforts to standardise and exchange tyre-related data globally.

The company joins the non-profit body as its fourteenth member. GDSO was established in January 2022 by Bridgestone, Continental, Goodyear, Michelin and Pirelli to facilitate the digital exchange of tyre data and develop common standards across the sector.

Moh Wahi, Head Of Truck And Bus Tyre Development at Linglong Europe, said: "By joining the GDSO as a Full Member and providing reliable data, we want to be the first Chinese tyre manufacturer to make a positive contribution to the further development of the tire industry and set new standards for the efficient processing of tire data in the digital age."

Riccardo Giovannotti, Secretary General of GDSO, said: "With Linglong Tire as a Full Member, GDSO is gaining one of the leading Chinese tire companies which is committed to digitalization and sustainability in the industry. Together, we will further make progress in developing standards for data processing and future-oriented solutions."

Shandong Linglong Tire Co., Ltd., founded in 1975, operates seven research and development centres globally and employs almost 20,000 people. The company runs nearly 200,000 sales outlets and exports products to 175 countries.

It supplies tyres to more than 200 production bases for over 60 automakers and has manufacturing facilities across China, Thailand and Serbia, with plans to expand further overseas.

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TyreSafe, UK’s charity dedicated to raising tyre safety awareness, has joined forces with Sussex Police’s Road Safety Team to introduce a pioneering digital reference tool for frontline officers. The initiative equips police with immediate, device-accessible tyre safety data during roadside stops.

Developed as a local pilot, the application enables consistent vehicle examinations and improves driver communication regarding tyre dangers. It offers specific checklists for diverse vehicle categories, including motorcycles, cars, heavy goods vehicles, light commercial vans and towed trailers. The system further incorporates guidance on part-worn tyres, common queries and educational talking points.

Following its Sussex trial, the programme holds potential for nationwide adoption across UK police forces. This deployment underscores Sussex Police’s dedication to roadway innovation and reinforces the essential contribution of proper tyre maintenance to overall public safety.

Stuart Lovatt, TyreSafe Chair, said, “This partnership with Sussex Police is a landmark moment for tyre safety enforcement and education. By putting reliable, accessible tyre safety guidance directly into the hands of frontline officers, we can ensure safer vehicles on our roads and help prevent avoidable collisions and breakdowns. Sussex is leading the way, and we hope this model will soon be adopted nationally.”

Superintendent Jo Grantham, Head of Roads Policing, Sussex Police, said, “Our officers are committed to keeping road users safe, and having instant access to this tyre safety resource makes a real difference on the ground. It supports enforcement while also giving us the tools to educate drivers more effectively. We’re proud to be working with TyreSafe on this project and to be the first police force in the country to pilot it.”

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The UK Towing Safety Alliance (UKTSA) has published a comprehensive four-year analysis of incident data from National Highways’ Strategic Road Network, covering 2022 to 2025. The findings reveal a 23 percent rise in total towing-related incidents, driven primarily by a maintenance crisis affecting utility and commercial trailers. While traffic collisions involving towed vehicles decreased by 17 percent, mechanical breakdowns now constitute 77 percent of all towing-related incidents, highlighting vehicle and trailer condition as the sector's foremost challenge.

The data coincides with SMMT Motorparc 2025 figures showing Britain's vehicle fleet at its oldest recorded level, with average car age reaching 9.7 years. The summer harvest season has also arrived, bringing agricultural trailers back to roads after months of disuse. NFU Mutual research indicates collisions involving agricultural vehicles are 56 percent more likely between May and September, reinforcing the need for pre-journey roadworthiness checks.

Utility and agricultural trailers now account for nearly half of all towing-related callouts, surpassing 3,000 incidents in 2025. Regionally, the North West has overtaken the South East as the most incident-prone area, with trailer failures surging 60 percent since 2022, while the North East recorded a 55 percent increase. A growing divide exists between leisure and commercial towing sectors.

Leisure sector improvements, including fewer horsebox incidents and regional caravan reductions, suggest awareness campaigns are yielding positive results. However, utility trailer failures continue climbing, indicating maintenance standards across commercial and domestic sectors require greater attention. Regular servicing, correct loading and proper coupling remain essential to prevent avoidable incidents.

For working trailers, summer represents peak operational period, with agricultural and utility trailers seeing intensive use while rural roads become busier with tourists and cyclists. The Alliance emphasises that trailers stored for extended periods require thorough inspections before returning to service.

The UKTSA urges all towers to perform three essential checks covering tyres, load and connection before every journey. Tyres must be inspected for pressure, tread and deterioration; loads correctly distributed and couplings and electrical connections verified. The Alliance will place ‘The Working Trailer’ at the centre of safety campaigns, collaborating with industry partners to boost maintenance awareness and reduce preventable breakdowns across the Strategic Road Network.

A spokesperson for the UK Towing Safety Alliance said, “It’s encouraging to see fewer collisions involving towing vehicles, which suggests that drivers are becoming more aware of safe towing practices. However, that progress is being undermined by a growing number of preventable mechanical failures. The challenge is no longer simply about how people tow – it’s increasingly about what they’re towing and the condition it’s in. As both tow vehicles and trailers get older, regular maintenance has never been more important.”

Stuart Lovatt, Chair of TyreSafe, said, “Harvest season places extra demands on both vehicles and trailers, particularly those that may only be used for a few months each year. One of the most common issues we see is tyres that appear to have plenty of tread but have deteriorated through age, weathering or prolonged storage. Whether you’re towing a livestock trailer, plant trailer, horsebox or caravan, tyres should always be inspected for correct pressure, damage, cracking and signs of ageing before every journey. A few minutes spent carrying out these checks can prevent breakdowns and significantly improve safety for everyone using our roads.”

Sarah Smithurst MBE, COO, National Trailer & Towing Association (NTTA), said, “Across the NTTA network, we’re seeing a noticeable increase in enquiries from people looking to refurbish older trailers or source second-hand trailers, including imported models, as a more affordable alternative to buying new. While extending the life of a trailer is often entirely appropriate, it’s essential that owners understand that trailers are not maintenance-free. Many have been in service for years, sometimes decades, and components naturally deteriorate over time, even if the trailer has seen relatively little use. Every trailer should be thoroughly inspected before it returns to the road, with particular attention paid to tyres, brakes, bearings, couplings and lighting. Investing in regular servicing and maintenance is far less costly than experiencing a breakdown – or worse, being involved in an incident. The NTTA continues to help and advice new and old trailer users about safety and many are asking for help when towing, especially the reversing aspect of a trailer, now the B&E test was withdrawn. We are also seeing more trailers being repatriated from North America and Europe rather than purchasing new in the UK.”

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