Indian tyre manufacturer grapples with Mexico subsidiary challenges whilst accelerating capacity investments and EV market push

JK Tyre and Industries Ltd is confronting significant trade headwinds in its Mexican operations whilst pressing ahead with ambitious expansion plans and positioning for India’s electric vehicle revolution, senior management revealed recently during the company’s quarterly review.

The Delhi-based manufacturer’s Mexican subsidiary, JK Tornel, has been severely impacted by uncertainty surrounding US trade policies. Management acknowledges operational disruptions despite recent clarifications on tariff structures.

Tariff Turbulence Hits Mexico Operations

According to Arun K Bajoria, Director and President International, JK Tornel faced considerable challenges throughout the financial year as shifting US trade policies created market uncertainty.

“There was complete uncertainty in Mexico, supplying to the US because of the Trump tariff; there was no certainty and every time, the dates were sort of getting shifted,” Bajoria explained. “So there was a complete uncertainty in the minds of the customers based in the USA.”

The Mexican subsidiary, which derives approximately 60 percent  of its revenue from domestic markets with the remainder split between exports to the United States and Latin American countries, has been forced to recalibrate its strategic focus.

“Our strategy now is increasing our sales to the domestic market, that is number one, and also to Brazil market and then to Latin American markets,” Bajoria said, outlining the company’s response to trade uncertainties.

Recent policy clarifications have provided some relief, with automobile tyres continuing to benefit from zero-duty exports from Mexico to the United States. However, management acknowledged that customer confidence remains fragile.

“This clarification has been ascertained recently. So, the on-the-ground in terms of the US customers is still sleeping in, and we have communicated the notifications, etc., to them,” Bajoria noted.

Major Investment Programme Gathers Pace

Despite external challenges, JK Tyre is accelerating its capacity expansion with ongoing projects worth INR 14 billion across passenger car radial (PCR), truck and bus radial (TBR), and all-steel light truck radial segments.

Managing Director Anshuman Singhania confirmed that capacity utilisation levels remain high across all plants. The company operates 11 manufacturing facilities globally and produces over 35 million tyres annually.

“The projects which we have already been implementing are on track, and we will have the capacities available from these projects in this financial year 2026,” said Chief Financial Officer Sanjeev Agarwal, indicating capital expenditure of approximately INR 9 billion planned for the current fiscal year.

In Mexico, a separate US$27 million passenger car radial expansion project is progressing. It specifically targets larger rim size tyres to enhance revenue and profitability potential.

Electric Vehicle Market Push Intensifies

The company is aggressively positioning itself in India’s rapidly expanding electric vehicle segment, where it has established dominant market positions across multiple categories.

“We enjoy almost 70 percent market share across all OEMs. We are also supplying tyres in the replacement market,” Singhania said, highlighting supply relationships with leading manufacturers, including Tata Motors, Ashok Leyland’s Switch Mobility, JBM, and Eka Mobility.

The electric bus segment currently contributes 7 percent of India’s total bus industry, with projections indicating growth to 10 percent driven by government policy interventions. In the last-mile connectivity segment for small commercial vehicles, JK Tyre commands a 50 percent market share with Tata Motors’ electric variant.

The company is also expanding its presence in the two—and three-wheeler electric segment, supplying prominent manufacturers such as Ola Electric, Ather, and Pure Electric.

“By 2030, we are estimating around 1.33 million units, which amounts to 20 percent of the passenger vehicle production in the country,” Singhania projected for electric passenger vehicles.

Strategic Market Response

Management indicated that raw material price stabilisation is providing operational relief, and despite ongoing global volatility, the company expects continued stability over the coming quarters.

The company’s diversified geographical footprint, with subsidiary operations including Cavendish Industries contributing significantly to consolidated performance, is helping mitigate regional market challenges.

“We believe the US tariff in the medium to long term is unlikely to have a significant impact on the auto sector and the tyre industry,” Singhania said, expressing confidence in the company’s strategic positioning despite near-term uncertainties.

The ongoing scheme of amalgamation between subsidiary AIL and JK Tyre has received regulatory approval from SEBI and awaits final clearance from the National Company Law Tribunal, which is expected to further streamline operations.

Doublestar Tire showcased its high-value tyre solutions at the recently concluded 2025 Latin Tyre Auto Parts Expo in Panama City. The event, considered one of Latin America's premier trade events for tyres and automotive components, saw participation from manufacturers, distributors and industry professionals, along with visitors and potential partners.

Doublestar presented a diverse range of innovative tyres tailored to Latin America’s demanding conditions, including high-performance passenger car tyres and robust commercial tyres for trucks and buses. Given the region’s varied terrain and climate, the company highlighted products engineered for superior wear resistance, wet traction and durability. Among the featured solutions was the TBR model TPR79, designed with a specialised tread pattern for enhanced off-road performance, alongside the PCR AT and MT lines – popular among SUV drivers for their safety, extended lifespan and reliable grip on challenging roads.

This exhibition aligns with Doublestar’s strategy to strengthen its presence in Latin America as a provider of advanced, dependable tyre technology. The company remains focused on R&D to deliver sustainable, high-performance solutions that address the dynamic needs of the global automotive market, ensuring safety, efficiency and environmental responsibility.

The German rubber industry has reiterated its call for the adoption of a ‘First Touch Principle’ in the EU Deforestation-Free Regulation (EUDR), citing excessive bureaucratic burdens. Boris Engelhardt, Managing Director of the German Rubber Industry Association (wdk), emphasised that businesses – particularly small and medium-sized enterprises – are struggling to meet the EUDR’s extensive documentation requirements. The proposed principle would simplify compliance by requiring only the first importer in the European supply chain to provide proof of adherence, exempting downstream processors and manufacturers from redundant verification.

As a major user of natural rubber, the European rubber industry relies heavily on imports from Asia and Africa, making the EUDR’s proposed ‘zero-risk class’ – advocated by 18 EU member states – irrelevant to the sector. While fully supporting the regulation’s goals of protecting human rights and ecosystems in rubber-producing regions, Engelhardt argued that enforcement should focus on initial importers rather than imposing repetitive checks across the entire supply chain.

He noted that established natural rubber traders already comply with EUDR standards, and the industry can trace whether imported finished goods contain natural rubber. This, he stated, should suffice for regulatory oversight. Engelhardt urged EU policymakers to adopt the ‘First Touch Principle’ to streamline compliance, reduce administrative strain, and ensure the regulation achieves its intended impact without unnecessary complexity.

Gurugram-headquartered tyre major Apollo Tyres has announced the appointment of Mahalakshmi Ramaswami as its new Chief Human Resources Officer, effective immediately, the company said in a regulatory filing.

Ramaswami’s appointment was approved by the board of directors following a recommendation from the Nomination and Remuneration Committee.

Prior to joining Apollo Tyres, she most recently served as the Head of HR for the Southeast Asia Cluster based in Singapore at Mondelez International.

She brings over two decades of experience across multinational organisations spanning fast-moving consumer goods, telecommunications, pharmaceuticals and consulting sectors.

During her tenure at Mondelez, Ramaswami is credited to have a played pivotal role as the HR Director for India Region in the business turnaround by aligning people strategy with organisational objectives.

She also has held leadership roles at prominent Indian and multinational companies including Bharti Group, Ranbaxy, Ballarpur Industries and EY.

Ramaswami holds an MBA from IMT Ghaziabad and a Bachelor’s degree in Physics (Hons.) from Delhi University.

On the other hand, as part of the Management Restructuring at Apollo Tyres, Dipankar Ghosh, Group Head of HR Business Partnership for Manufacturing & Projects, will no longer be part of the senior management structure as defined under securities regulations, effective 16 July.

The restructuring reflects Apollo Tyres’ strategic focus on strengthening its human capital capabilities as the company navigates competitive pressures in both domestic and international markets.

Bridgestone India has presented the European Alignment Certificate to the Automotive Research Association of India (ARAI), recognising the successful completion of their Rolling Resistance (RR) Lab Alignment. The certificate was presented to Dr Reji Mathai, Director of ARAI, by Rajarshi Moitra, Deputy Managing Director of Bridgestone India, during a ceremony attended by senior leaders from both organisations.

This milestone strengthens the partnership between Bridgestone and ARAI, India’s leading automotive R&D institution for testing and standardisation. Rolling resistance plays a crucial role in enhancing fuel efficiency, aligning with both organisations’ commitment to advancing tyre technology. The certification underscores their shared dedication to fostering innovation, improving testing capabilities and promoting sustainable mobility solutions in India.