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.

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Hankook Tire has earned a notable honour in the 2026 Auto Express Product Awards, with its Ventus evo model receiving a commendation within the Summer Tyre classification. The recognition places the company’s flagship ultra-high-performance tyre among the year’s most impressive automotive products as determined by the influential British publication.

This accolade traces back to an extensive comparative analysis conducted by Auto Express, the findings of which first appeared in the magazine’s August 2025 edition. The testing regimen focused on the widely used 225/40 R18 size and featured nine competing brands. The subsequent awards announcement, which included this commendation, was made public in the periodical's April 2026 issue.

Evaluation protocols were notably exhaustive, encompassing both wet and dry surface assessments alongside metrics such as rolling resistance and acoustic comfort. Wet-track drills scrutinised braking distances, cornering stability and aquaplaning resistance, while dry-track sessions measured steering precision, grip levels and chassis balance. Judges additionally conducted subjective road tests to gauge steering feedback and ride quality across diverse pavement types.

The Ventus evo ultimately claimed third position overall, distinguishing itself particularly through superior wet-weather capabilities, including braking performance that rivalled the category leader. Designed as the newest iteration of Hankook’s premier summer tyre line, the product incorporates sophisticated tread architecture aimed at premium sports sedans and coupes. This commendation bolsters Hankook’s reputation for engineering tyres that adeptly harmonise dynamic handling, safety margins and cost-effectiveness for discerning motorists.

Ho Seok Chea, Managing Director, Hankook Tyre UK, said, “Independent third-party testing is a valuable endorsement of our engineering standards, confirming that our products provide the quality, performance and long-term reliability expected in real-world conditions.”

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Mitas has confirmed its role as the Main Sponsor for the 71st World Ploughing Championship, scheduled to take place from 3 to 6 September 2026 in Osijek-Baranja County, Croatia. This engagement follows the brand’s notable participation in the 2025 edition held in the Czech Republic, reinforcing its dedication to premier agricultural events that honour farming heritage.

Organised under the World Ploughing Organisation, the competition will draw participants and agricultural professionals from over 30 nations. The event serves as a global stage for ploughing proficiency, embodying precision and land stewardship – principles that resonate with Mitas’ ongoing mission to support the farming community worldwide. The company will leverage its sponsorship to secure a visible event presence, facilitating direct interaction with farmers, dealers and industry partners at its dedicated stand.

Attendees can explore the company’s latest agricultural tyre innovations, including the GRANTERRA series for high-horsepower tractors and the AGRITERRA ULTRA for transport applications. Additionally, Mitas will back the Croatian national ploughing team, aiding local competitors in their home-country challenge against elite international ploughmen and women.

Roberta D'Agnano, Global Brand Director Mitas at Yokohama TWS, said "Ploughing is one of the oldest agricultural skills, yet it remains a powerful symbol of everything that makes farming extraordinary: precision, experience and dedication to the land. That is why the World Ploughing Championship feels so close to the Mitas spirit. It brings together people who share a genuine passion for agriculture and a constant drive to do things better. We are proud to return as Main Sponsor, supporting these passionate teams and showcasing solutions that help farmers tackle today's challenges with confidence."

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TyreSafe, UK’s charity dedicated to raising tyre safety awareness, has forged a new alliance with Sheffield City Council aimed at elevating tyre safety awareness among the city's motorists. This initiative specifically targets Sheffield’s substantial student demographic and its numerous newly qualified drivers, recognising their particular vulnerability on the roads.

Sheffield's urban transport network accommodates over 1.7 billion vehicle miles annually, predominantly through short, daily commutes that exert significant stress on tyres. The city's diverse vehicle fleet includes a notable proportion of older or shared cars, which underscores the critical necessity for regular tyre maintenance. The collaboration will promote straightforward, preventative checks focusing on air pressure, tread depth and overall tyre health.

This partnership will weave tyre safety education into various local road safety campaigns, aiding the Council's broader objectives to diminish casualties on city roads. By instilling good vehicle maintenance habits early, especially among learners and students, the programme aims to foster lifelong safety practices. This concerted effort supports the Council's ongoing mission to reduce the number of individuals killed or seriously injured on Sheffield's thoroughfares.

Stuart Lovatt, Chair of TyreSafe, said, “In a city like Sheffield, where traffic density is high and journeys are frequent, making sure tyres are properly maintained is essential. By partnering with Sheffield City Council, we can reinforce these vital safety messages and encourage road users to make tyre checks part of their regular routine.”

Cllr Alexi Dimond, Chair of the Transport, Regeneration and Climate Policy Committee at Sheffield City Council, said, “Tyre safety is a fundamental part of road safety, but it’s something many road users – particularly those newer to driving and riding – don’t always remember to check. I’m pleased to announce this new partnership with TyreSafe, which will help ensure that practical tyre safety advice reaches road users at all stages. This scheme will give them the knowledge and confidence to keep vehicles safe and roadworthy in all weather conditions. Tyre safety can help reduce collisions and contribute to Vision Zero: our ambition to have no fatalities on Sheffield’s roads.”

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Atturo Tires has entered into a multiyear agreement to serve as the exclusive tyre brand for Mecum Auctions, the host of the World’s Largest Collector Car Auction. This strategic alliance positions Atturo at the heart of a dedicated automotive community that includes collectors, builders and daily drivers who value performance, style, durability and affordability – principles that have guided the tire manufacturer since its inception in 2009.

As the category-exclusive tyre sponsor for Mecum’s 2026-27 auction calendar, Atturo will benefit from extensive branding and promotional integration. This includes visibility across live events, television broadcasts, digital platforms, print media and social channels, all aimed at increasing brand recognition among consumers who actively seek Atturo products through dealerships.

The auction’s diverse lineup of muscle cars, luxury vehicles and off-road models aligns perfectly with Atturo’s target audience, showcasing Trail Blade and AZ tyres alongside enthusiast favourites. To support its dealer network, Atturo will provide co-brandable materials, event photography and sponsorship talking points via the dealer portal, reinforcing the brand’s national presence and its message of accessible performance.

Michael Mathis, President, Atturo Tires, said, “Mecum's audience is our audience. The people who show up to watch a Challenger cross the block or a built Bronco roll through the lot are the same drivers who trust Atturo on their daily vehicle, their weekend build and everything in between. This partnership puts our Trail Blade and AZ lines directly in front of them – and gives our dealer network another example of how Atturo is becoming the best-known private brand in the country.”

Breeann Poland, Director – Marketing and Communications, Mecum, said, “Mecum Auctions is excited to join forces with Atturo Tires by bringing them on as our official and exclusive tyre partner. Atturo has earned a reputation for delivering high-quality tyres for automotive enthusiasts of every kind, from racers and off-road enthusiasts to the everyday driver and weekend cruiser. That diverse range of customers they serve makes Atturo an excellent choice for our equally wide-ranging Mecum community.”

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