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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Ecolomondo Corporation, a Canadian developer of advanced recycling technology for scrap tyres, has announced a significant milestone with the continued commercial shipment of its recovered carbon black (rCB). The company has successfully shipped a fourth truckload of rCB from its Hawkesbury Thermal Decomposition Process (TDP) facility and is preparing to dispatch a fifth, following a new purchase order from a major off-take partner.

This commercial activity follows the recent installation and commissioning of new milling equipment and a dedicated processing line for recovered carbon black at the Hawkesbury plant. After an initial quality validation and a first purchase order received on 16 July 2025, the company has now fulfilled four orders with a fifth imminent.

In a further endorsement of product quality, a second major off-take customer, based in the United States, has formally approved Ecolomondo’s rCB for use in its manufacturing processes. This approval is anticipated to lead to substantial bulk purchase orders in the near future.

The company views these successive orders and the new quality approval as strong validations of the operational performance and output quality of its Hawkesbury TDP facility. When the plant reaches full operational capacity, it is projected to recycle roughly one million scrap tyres from cars, SUVs and trucks annually. This operation will yield an estimated 4,000 metric tonnes of recovered carbon black, 5,000 metric tonnes of pyrolysis oil, 2,000 metric tonnes of steel and 1,200 metric tonnes of process gas, contributing to a more circular economy.

Interim CEO JF Labbé said, “Off-take customers are steadily adopting the rCB on a global scale and are now integrating it into their regular production to produce new sustainable products. It is satisfying to see that scrap tyres are being processed to produce re-usable end-products to manufacture other consumable products.”

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Kuwait is launching a comprehensive initiative to convert its stockpiles of waste tyres from an environmental concern into a driver of economic growth. As reported by the Arab Times Kuwait, the nation is moving millions of used and damaged tyres from vast dumpsites, like the one in Rahiya, to specialised recycling plants. This strategic shift aims to mitigate ecological hazards while simultaneously generating new investment prospects and job opportunities.

While three recycling facilities are currently operational, officials acknowledge that the annual output of nearly two million waste tyres necessitates a significant expansion of capacity. To address this, plans are actively progressing to establish new factories in Salmi. This increased infrastructure is intended to ensure all locally generated tyres are processed and transformed into valuable commodities.

The government sees substantial economic potential in this sector, citing international success stories where tyre recycling generates billions in annual revenue. For Kuwait to achieve similar results, officials emphasise the need to strengthen regulatory frameworks and encourage continued investment. The repurposed materials are anticipated to supply several local industries, finding applications in road construction, athletic flooring, insulation and fuel production.

This priority was recently underscored in a high-level meeting chaired by Prime Minister Sheikh Ahmad Al-Abdullah Al-Sabah. The discussions focused on accelerating recycling projects, underscoring the dual objective of safeguarding the environment and cultivating new financial resources for the state.

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In a concerted effort to build a more cohesive and vibrant organisational culture, HS HYOSUNG is significantly broadening its range of value-sharing initiatives for its workforce and their families. Central to this mission is the ‘Culture Together’ series, an internal cultural project established in 2024 on the suggestion of Vice Chairman H S Cho. This programme is designed to provide shared cultural experiences that enhance communication and unity across the company.

A key component of the '2025 Culture Together' series involved securing tickets for over 100 domestic and international employees to attend Psy’s Summer Swag concerts. To ensure accessibility for staff based in various locations, the company arranged for performances across six different cities, including Incheon, Gwacheon, Uijeongbu, Suwon, Gwangju and Busan. This follows earlier global cultural events organised this year, such as company outings to the Coldplay concert in Seoul and the Disney 100th Anniversary Exhibition.

Beyond music, HS HYOSUNG has also engaged employees through cinema and sports. A private screening of the hit film F1: The Movie was held for more than 200 staff members, offering a story of teamwork that resonated with the company’s own values. The company’s support for athletic events included inviting employees and their families to high-profile football matches, such as FC Barcelona’s friendly game in Korea and an upcoming FC Seoul match, where employees' children will participate as official escort kids.

These ongoing efforts, operating under the slogan ‘Value Together’, are a fundamental part of HS HYOSUNG’s strategy to foster empathy and strengthen bonds among its employees. The company has committed to continuing this path by developing ever more diverse and relatable programmes aimed at nurturing a warm and dynamic corporate culture.

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Celebrating a remarkable 30-year alliance, FC Internazionale Milano and Pirelli have reaffirmed one of the most enduring partnerships in global football. This significant milestone underscores a relationship built on shared values of excellence, tradition and a profound passion for sport.

To commemorate this occasion, a special-edition PIRELLI cap has been released. Limited to just 1,995 units – a direct nod to the year the partnership began – this collector’s item merges the iconic symbols of both brands. The cap features the Pirelli logo prominently on the front, accompanied by the Inter crest on the side. A distinctive Biscione motif extends elegantly across the design, seamlessly uniting the identities of both institutions. The number 30 is also featured, highlighting the three decades of continuous collaboration.

This exclusive accessory is now available for purchase online and at Inter Stores Milano, including the Castello and San Siro locations. More than just merchandise, the cap serves as a tangible symbol of a deep and historic bond between two legendary names.

The celebratory product will also be prominently featured during a symbolic sporting weekend. It will be showcased both at the Netherlands Grand Prix and during Inter’s Serie A match against Udinese on 30-31 August, linking two major events that reflect the partnership’s dual commitment to elite football and high-performance motorsport.

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