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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Iochpe-Maxion, a global leader in automotive wheel production and a prominent manufacturer of automotive structural components across the Americas, has been distinguished as a top performer in environmental action by CDP. The organisation’s annual assessment placed the company on its prestigious Corporate ‘A’ List for 2025, reflecting exemplary transparency and climate leadership. This accolade is based on Iochpe-Maxion’s robust transition strategy and verified data disclosure.

CDP’s system, the sole global platform for independent environmental reporting, evaluated thousands of organisations this year. Out of more than 20,000 scored companies, a mere four percent earned an ‘A’ rating. This achievement signals Iochpe-Maxion’s advanced governance and substantial strides in building environmental resilience, positioning it among the world’s leading corporations in climate stewardship.

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Continental has launched the new IceContact 8 studded tyre for control and safety on ice, snow and slush Designed for severe winter driving, the tyre is aimed at a wide variety of vehicles, including compact cars, SUVs and hybrids, whether electric or conventionally powered, and comes in sizes ranging from 15 to 22 inches. This tyre builds upon the proven legacy of its predecessor, the VikingContact 8, to offer lasting winter performance.

At the core of its design is an innovative twin-stud system. This technology utilises two distinct stud types that work in concert: one is optimised for acceleration and secure braking by biting into the surface, while the other enhances dynamic handling and cornering stability. These studs are strategically distributed across the tread for maximum grip. To bolster durability and performance, the studs are set within larger, deeper tread blocks. This creates a more stable foundation that minimises stud movement and loss, contributing to a longer tyre life. Further enhancing resilience, a specialised chemical bond fuses each stud to the rubber, reducing gaps that could trap debris and compromise the tyre's structure over time.

The tread design itself incorporates an optimised sipe layout for stronger grip and stable handling. A specially formulated compound, featuring a new highly flexible polymer and a softener system, ensures the rubber remains pliable and effective even in extreme cold. This balance of a robust V-shape tread pattern, advanced stud bonding and a cold-adaptive compound guarantees reliable traction and safety throughout the tyre's entire service life. The IceContact 8 is scheduled to launch in the second quarter of 2026, making it available for the following winter season.

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Hankook Tire has released a new brand film to mark its official sponsorship of Saudi Arabian football club Al-Ittihad FC. This initiative is designed to bolster the company’s premium status and deepen brand connection within crucial Middle Eastern and African markets, where passion for both football and motorsport is rising rapidly.

The cinematic piece creatively merges intense racing sequences, featuring high-performance cars on Hankook tyres, with actual match footage of Al-Ittihad athletes. This parallel highlights a shared dedication to peak performance, symbolising the solid partnership between the brand and the club. Through the use of striking tyre-tread visuals and immersive driving acoustics, the film reinforces Hankook’s identity as a trusted, high-end partner that champions a winning spirit. The content is being distributed globally via Hankook’s official social media platforms.

This move is part of Hankook’s broader global sports marketing strategy, which includes partnerships with major events like the UEFA Europa League, the Ballon d’Or awards and the TGL simulation golf league. The company’s involvement in premier FIA-sanctioned motorsport events held in Saudi Arabia, such as Formula E and the World Rally Championship, has already significantly raised its profile across the region.

Moving forward, Hankook Tire intends to leverage its alliance with Al-Ittihad to create more avenues for consumer engagement. The objective is to consistently underscore the brand’s world-class technological expertise and reinforce its position as a premium global leader.

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The BKT Foundation, the corporate social responsibility arm of Balkrishna Industries Ltd., has been formally recognised on the Wall of Giving at Mumbai’s Tata Memorial Hospital. This honour acknowledges the foundation’s sustained philanthropic support, which has made a concrete difference in advancing the hospital’s work in cancer treatment and research. The Wall of Giving specifically celebrates donors whose ongoing commitments have created enduring benefits for the institution and, most importantly, for patients and their families.

Guided by its ‘We Care’ motto, the foundation concentrates its efforts on healthcare, education and essential services. Its support for Tata Memorial Hospital has included funding critical palliative care programmes for children and providing advanced medical equipment. These donations, encompassing ultrasound devices, anaesthesia equipment, video bronchoscopy processors and dual-energy CT scanners, have directly strengthened diagnostic and treatment services. This has expanded access to high-quality, affordable cancer care for a broader patient population.

This accolade marks a significant milestone in the BKT Foundation’s wider mission to generate measurable social impact through dedicated and long-term engagement, both within India and internationally.

Sunita Rao, General Manager – Fundraising, Tata Memorial Hospital, said, “BKT’s steadfast commitment and ongoing support over the years have played a pivotal role in extending both our services and institutional capabilities, expanding access for patients in need and enabling several transformational initiatives at the hospital. We are deeply grateful for the company’s trust in the hospital and for the continued support in providing high-level technologies and machinery at the service of the Indian community of people.” 

Vijaylaxmi Poddar, President & Chairman, BKT Foundation, said, “This acknowledgment reflects a shared commitment to care, dignity and healing and reinforces the value of sustained partnerships in advancing healthcare for those who need it most. It is truly inspiring to see how our efforts are strengthening cancer care and expanding access for patients in need, and we are honoured for the opportunity to walk this journey.”

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