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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Maxxis tyres demonstrated their competitive edge during the 2026 King of the Hammers (KOH) off-road racing event, where affiliated athletes achieved notable success across several demanding vehicle classes. The most significant victory came in the premier 4900 UTV Hammers Championship, where competitor Jeff Martin secured the overall win. Martin, driving for the Blais Motorsports team in the Open UTV category, navigated the notoriously difficult Johnson Valley landscape on Maxxis Roxxzilla tyres. His performance was characterised by strategic driving and steady control, which allowed him to outpace the competition and claim the top position.

Further highlighting the capability of the Roxxzilla tyre, legendary motocross figure Jeremy McGrath turned in a remarkable performance by finishing ninth overall. This achievement was particularly impressive given that McGrath was competing in the Pro Stock NA class against a field largely composed of more powerful turbocharged vehicles. His top-ten result served as a testament to both his driving expertise and the reliability of his Maxxis rubber. The UTV Pro Modified class also saw Maxxis-supported athletes dominate the podium, with Scott Lesage taking first place and Tommy Thompson securing second.

The punishing nature of the event was evident in the experience of Can-Am driver Hunter Miller. After contending near the front of the 4900 race, Miller’s bid for victory was derailed by a steering malfunction. Despite sustaining significant damage to his vehicle, he demonstrated considerable resilience by continuing to fight through the field and ultimately finishing eighth in the Open UTV class. Before the main events, Maxxis athletes had already established a strong foundation during the earlier Desert Challenge, with Dustin Jones and Todd Zuccone each earning podium finishes in their respective classes. The collective results throughout the week’s racing reaffirmed the brand’s reputation for providing durable, high-performing and consistent tyres capable of handling the extreme and varied conditions that define the King of the Hammers.

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The Association of Natural Rubber Producing Countries (ANRPC) had the pleasure of welcoming Thomas Colonna, Head of the Asia Regional Office from the European Forest Institute (EFI), for a courtesy visit to its Secretariat in Kuala Lumpur on 13 February 2026.

The meeting provided a valuable platform for constructive dialogue focused on strengthening collaboration in sustainability and responsible natural resource management. Both parties exchanged views on potential joint initiatives, with particular attention given to supporting smallholder farmers across ANRPC member countries in the context of evolving global environmental requirements.

The discussions underscored a shared commitment to advancing cooperation and promoting resilient, sustainable practices within the natural rubber sector, marking a positive step forward in the relationship between the two organisations.

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RuLa-BRW GmbH, a prominent independent retreader of commercial vehicle tyres, a longstanding partner in the AZuR network and a key component of the German tyre circular economy, is celebrating its 25th anniversary. Based in Königs Wusterhausen near Berlin, the company is marking this milestone by launching a significant growth initiative focused on modernising its production capabilities and broadening its market reach.

Since its establishment a quarter-century ago, the company has evolved from a regional supplier into a recognised specialist in tyre retreading. Throughout this period, its core mission has centred on the economical reuse of high-quality tyre casings. This approach not only delivers substantial cost reductions for fleet operators but also plays a vital role in conserving raw materials, reinforcing the company’s longstanding commitment to sustainable practices within the commercial vehicle sector.

Looking forward, the company is undertaking substantial investments in state-of-the-art production technology. This strategic move is designed to elevate retreading quality, enhance operational efficiency and ensure robust competitiveness in the evolving market. This focus on technological advancement comes in response to several converging industry trends, including escalating raw material prices, stringent climate change regulations and the persistent pressure on fleet operating costs. These factors are collectively driving heightened demand for retreaded tyres as a viable, economical alternative to new tyres.

In conjunction with its production upgrades, RuLa-BRW is actively expanding its sales network to meet this growing demand. The company’s dual-pronged strategy of investment and expansion underscores a strong vote of confidence in the future of the retreading industry. By extending the life cycle of durable tyre casings, retreaded tyres significantly reduce energy consumption, material usage and carbon dioxide emissions, solidifying their role as a cornerstone of sustainable logistics and the broader circular economy.

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Falken Tyre Europe GmbH is embarking on a new brand initiative designed to put its all-terrain capabilities to the test in a practical, real-world environment. The Falken Adventure Camp, set to take place in New York State from 28 May to 7 June 2026, will place the Falken WILDPEAK A/T AT3WA tyre at the heart of an immersive driving experience. Participants will navigate a curated route through a diverse range of landscapes, from bustling urban settings to serene forests, gravel paths and remote countryside trails, showcasing the tyre’s adaptability.

The WILDPEAK A/T AT3WA is engineered for drivers whose journeys frequently shift between paved roads and unpaved terrain. This event aims to make that transition tangible, demonstrating the tyre’s competence in both everyday commuting and more rugged off-road conditions. Its selection for the camp is bolstered by a recent industry accolade; in September 2025, the tyre secured first place overall in a prestigious off-road tyre test, outperforming six competing all-terrain models. It was specifically praised for its exceptional performance on loose surfaces, including reliable traction, short braking distances and consistent lateral grip.

The Adventure Camp’s philosophy steers clear of extreme off-road challenges, instead focusing on authentic driving scenarios that highlight the tyre’s versatility. The planned journey is intended to illustrate how modern mobility can harmoniously coexist with nature-focused exploration. Enthusiasts interested in participating can submit their applications through the dedicated campaign website until the end of March 2026.

This initiative represents Falken’s broader strategic shift towards more experiential marketing. By moving beyond traditional product presentations, the company seeks to create memorable encounters where drivers can directly experience product performance. The goal is to make the tyre’s strengths tangible within genuine, relatable driving contexts, fostering a deeper connection between the consumer and the brand.

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