JK Tyre & Industries, one of the leading tyre makers in the country, expects a strong pickup in demand for FY2025–26. The company, in addition to strategic capacity expansions, is upbeat about attaining growth across both domestic and international markets, despite prevailing global uncertainties.

It may be recollected that the tyre major had announced a CAPEX towards capacity expansion of INR 14 billion last year, which will see an additional INR 2.5 3 billion earmarked for maintenance capex. The board-approved capex will be directed primarily towards expanding truck and bus radial capacity, with production slated to begin in early 2025. Notably, the company plans to roll out all-steel light truck radials from July and commence passenger vehicle radial production by September 2025, targeting a 15–20 percent capacity increase over the next six to 12 months.

In a post-earnings call, Anshuman Singhania, MD, JK Tyre & Industries, said, “We anticipate robust demand across OEM and replacement markets in FY2026, driven by a recovery in sentiment and product launches. In the OE segment, we expect mid-single-digit growth in truck tyre demand, recovering from last year’s muted performance amid general elections. Stronger single-digit growth in the passenger vehicle segment, buoyed by a pipeline of new model launches. High single-digit growth in the two-wheeler and three-wheeler segment. And mid-single-digit growth in the tractor category, underpinned by forecasts of a normal monsoon. Replacement demand trends are also encouraging.”

Export business

Even as United States export tariffs remain a challenge, with a 25 percent duty on truck and passenger radials and 10 percent on other categories, Singhania stated that JK Tyre has managed a 4 percent QoQ rise in exports. The company continues to target key international markets including North America, the Middle East, Latin America and Europe.

Meanwhile, the company’s Mexico-based Cornell facility remains a vital export hub and is undergoing expansion to support future demand.

JK Tyre is also making strategic long-term investments to secure raw material supply. Out of 200,000 hectares identified in the Northeast for natural rubber cultivation, about 70,000–75,000 hectares have already been developed. On the cost front, Singhania stated that raw material prices declined by 2–2.5 percent in the last quarter and are expected to stabilise moving forward.

Financial Performance

In Q4 FY2025, the company reported revenue of INR 37.8 billion, EBITDA of INR 3.84 billion, EBITDA margin of INR 10.2 percent and profit after tax of INR 1 billion.

Singhania also explained that despite a challenging year on the back of muted growth in truck segment, which constitutes a large chunk of the company’s OE business, along with high raw material prices and inventory costs, it was able to reduce its net debt of INR 40 billion, down from INR 43 billion in December 2024. However, there was a marginal uptick compared to March 2024 due to increased working capital requirements stemming from raw material and inventory costs. JK Tyre continues to maintain a healthy balance sheet, with debt-to-equity and debt-to-EBITDA ratios within manageable levels — currently at 2.2, which going forward the company aims to bring down to a targeted corridor of 1.5–1.8.

Inorganic Growth and Global Watch

Responding to a query on the company’s plans for inorganic growth, Singhania reiterated its intent to pursue inorganic growth opportunities. Having previously expanded through acquisitions, the company is now actively scanning global opportunities, particularly in Europe and the United States, where plant shutdowns and cost pressures may create strategic openings.

In Southeast Asia and China, market allocations are already in place, though timelines for activity vary by region.

Despite global headwinds, Singhania remains optimistic about overall demand. "We do not see any structural shifts that could dampen industry momentum," noting that key sectors such as cement, mining and steel remain aligned with long-term growth outlook.

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French tyre major Michelin has inaugurated its first standalone Michelin Tyres & Services store in Kochi, Kerala. Launched in partnership with Global Tyres, this further adds to the company’s aggressive expansion plans for India.

The new facility spread across 5,500 sqft provides a comprehensive range of tyre-related services under one roof, including tyre sales, professional fitment, wheel balancing, alignment, nitrogen inflation and alloy wheel upgrades.

The store was inaugurated by Prashant Sharma, National Sales Manager at Michelin India, along with the team from Global Tyres.

Shantanu Deshpande, Managing Director, Michelin India, said, “Kochi is an important and fast-evolving mobility market. The launch of our first standalone Michelin Tyres & Services store in the city underscores our commitment to bringing world-class products and services closer to customers. Together with our experienced partner Global Tyres, we aim to deliver a premium experience that matches the expectations of Kochi’s growing base of automotive enthusiasts and discerning drivers.”

The tyre maker stated that Kochi is experiencing a steady rise in personal mobility and premium vehicle ownership.

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Giti Tire Co., a leading Chinese tyre manufacturer, reported a sharp 48.9 percent fall in first-quarter net profit, citing surging raw material costs that outpaced revenue gains.

Net profit attributable to shareholders slid to 23.7 million yuan in the three months to 31 March, down from 46.3 million yuan a year earlier.

“The decrease in net profit was mainly due to the year-on-year increase in raw material prices,” the company said.

Despite the profit decline, Giti’s operating revenue rose 4.8 percent to 1.13 billion yuan, supported by stronger sales volumes. Net cash generated from operating activities rebounded to 35.7 million yuan, compared with an outflow of 45.9 million yuan a year earlier, as receipts from customers increased.

Operating costs jumped to 1.06 billion yuan, with raw material and production expenses comprising the bulk of the rise. Meanwhile, the company’s total assets grew 3.6 percent to 4.5 billion yuan by the end of the quarter.

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Chinese tyre manufacturer Aeolus Tyres opened a new warehouse facility recently in Manila and launched its latest light truck tyre series at an event attended by more than 150 industry stakeholders from across the Philippines.

The warehouse, situated on Luzon Island, marks a significant expansion of Aeolus Tyres’ distribution network in the northern Philippines, aimed at strengthening dealer relationships and enhancing service delivery times across the region.

The company simultaneously unveiled its new light truck tyre range, which features enhanced load-bearing capacity and extended durability. The products have been developed specifically for the Philippine logistics sector, where demanding road conditions and heavy cargo requirements pose particular challenges for commercial vehicle operators.

Fleet operators and industrial partners gathered at the Manila launch event, which also saw the presentation of parent company Prometeon Tyre Group’s localisation strategy for the Philippine market.

The strategy focuses on adapting product specifications to match the country’s diverse terrain and operational requirements, providing more targeted solutions for local customers.

Aeolus Tyres’ warehouse expansion comes as the company seeks to capitalise on growing demand in the Philippine commercial vehicle market, where logistics companies are increasingly seeking reliable tyre solutions that can withstand the archipelago’s challenging road infrastructure.

The new facility is expected to reduce delivery times and improve inventory management for dealers across northern Luzon, one of the Philippines’ key economic regions.

The light truck tyre series launch marks Aeolus Tyres’ latest effort to gain market share in Southeast Asia’s commercial vehicle segment, where competition among international tyre manufacturers has intensified in recent years.

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Continental is positioning itself as a key player in the sustainable transformation of commercial vehicle fleets in Europe through its Conti Eco and Conti Efficient Pro tyre lines. With the EU’s stringent CO₂ reduction targets for heavy-duty vehicles (a 45 percent cut by 2030 compared to 2019 levels), the company emphasises how tyre technology directly impacts fleet electrification and emissions reduction.

The development of these tyre lines is centred on increasing fuel and energy economy, particularly for regional and long-distance transportation. Continental tyres assist business fleets reduce their environmental impact by lowering rolling resistance while maintaining high mileage. The Conti Hybrid tyre is ideal for urban and regional operations with frequent stop-and-go traffic because of its increased resilience, enabling a long service life even under difficult conditions.

Continental prioritises collaboration with fleet operators and manufacturers to develop tyre solutions that meet changing industry expectations. According to Hinnerk Kaiser, Head of Product Development EMEA at Continental, the company's existing portfolio is already well-suited for electric mobility, but it will continue to evolve to assist the larger transition to zero-emission transportation. The emphasis remains on maximising rolling resistance, load capacity and longevity to ensure that tyres make a substantial contribution to sustainable fleet management.

Energy efficiency is still quite important as fuel combustion accounts for 90 percent of the CO₂ emissions of a diesel vehicle and even electric trucks see 75 percent of their emissions connected to the generation of power. By minimising rolling resistance, Continental’s tyres contribute directly to lowering energy consumption and overall fleet emissions, supporting both sustainability and cost efficiency.

Electric commercial vehicles, which are around 30 percent heavier than diesel trucks due to battery weight, necessitate tyres with greater load capability. The Conti Eco HS 5 and Conti Efficient Pro HS 5 lines meet this need with a higher load index, allowing fleet operators to retain payload capacity without sacrificing performance. Markus Erdmann of Designwerk Technologies, a Continental partner in electric mobility, observes that current battery-electric vehicles with around 500 kWh capacity now have low payload drawbacks, due in part to enhanced tyre engineering.

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