The benefits of this are multiple. First of all, they don’t need to offer the full range of sizes to stake their claim as a racing tyre manufacturer. And I need to stress I’m talking about road car racing, not F1 racers, as those tyres are basically rocket science at this point. Many Chinese factories seem to have launched their racing tyre range for a very specific purpose, as they only have a few sizes, and sometimes very odd ones. For example, I saw a factory with just three different sizes for their racing tyre pattern, and one of them was 255/55R18. Just in case you want to rock your BMW X5 on the racing track, maybe? I can’t help but giggle at the image of drifting SUVs. Secondly, they don’t even need to be very good at it, or to be able to make very innovative products. It’s much easier to develop a product for a very specific purpose and just make it ‘good enough’, without engaging in the top five percent where all the heavy investment and R&D is needed to churn out those milliseconds that make all the difference for the top performers. Actually, when catering to the segment that just wants to burn tyres – drifters, for example – the usually all-important grip factor suddenly becomes negligible. And offering a budget option is attractive to those burning tyres on their own bill.

Design wise also racing tyres are very different from regular car tyres, in that they’re basically slicks with a flashy looking single lightning groove from close to the centre to the edge. Hard to make that design truly unique, but that also means that nobody can be blamed when designing something a bit too similar to something already on the market. Function before looks in this case, I’m sure. And in terms of rubber compounds, there are usually two or three different ones, depending on specific client needs, and they’re made to order. The hardest compounds are naturally for the drifters, and the softer ones for track racing.

But, in spite of the designs being simple, compounds not challenging to make, and the fact that the size range doesn’t need to be extensive, launching a racing tyre range still somehow reflects positively on all the regular passenger car tyres in the manufacturer’s range. As if the fact that they can design and produce tyres for high-performance racing machines also means that their standard range offers better handling or on-road performance to vehicles run by weekend warriors or others who might drive a station wagon, but really are race car drivers at heart.

That is, of course, if the Chinese budget manufacturers used this in their global marketing strategy – and in most cases, had one to begin with. The days where Chinese tyres could be sold on price alone are over, as output has far exceeded demand, but it’s striking to see how few have actually invested in their future market shares. For the layman, trying to name five major Chinese tyre manufacturers (or any of their brands) would be a tall order. Trying to name any that produce racing tyres would be even harder. Even for those inside the industry, very few know how many produce racing tyres or other specialised tyre products, because they often produce for a single client and don’t use this in active marketing. And no, a ‘sales manager’ posting a picture on LinkedIn doesn’t count. The brands and tyre manufacturers in China that will prevail are those able to build a global marketing strategy and naturally possess the skills to stay at the front of product development and gradually move out of the ultra-budget segment. The rest will learn the hardship of selling cheap tyres on price alone when China isn’t cheap anymore. (TT)

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Nokian Tyres has launched its ‘Carve the Corners’ contest, offering hockey fans in United States and Canada a chance to win a trip to the 2026 IIHF Ice Hockey World Championship. The promotion runs from 6 February to 20 March. Entrants can visit a dedicated page on the company’s website for their opportunity to win an all-expenses-paid experience. This includes airfare, lodging and tickets to the semifinal games in Zurich, Switzerland, on 30 May. One winner will be randomly selected from each country, each receiving a trip for themselves and a guest.

The tournament itself, for which Nokian Tyres is an Official Sponsor for a two-year period, takes place from 15 to 31 May. It is the world’s largest annual winter sports event, featuring 64 games where 16 top national teams compete for the World Champion title, captivating millions of viewers. Beyond the grand prize, the contest page allows participants to predict the tournament’s overall winner and leading scorer, and also provides information on Nokian Tyres products.

The company is promoting the campaign extensively. Efforts include social media outreach on platforms like Facebook, Instagram, TikTok and Threads, where followers can find competition updates, driving tips and hockey-related content. Nokian Tyres is also working with its network of tyre dealers and hockey media across both countries to raise awareness. This broader campaign involves dealer showrooms, podcast discussions and various grassroots channels. Additionally, a separate contest is available exclusively for tyre dealers, offering them a chance to win tickets to the championship, promoted through the company’s dedicated dealer communications.

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MRF Limited reported a 15 per cent rise in consolidated total income for the third quarter ended 31 December 2025, supported by stronger demand across original equipment and replacement segments.

Total income rose to INR 81.75bn, compared with INR 70.99bn in the corresponding quarter a year earlier. Consolidated profit before tax increased to INR 9.17bn, up from INR 4.24bn a year earlier, after providing for an exceptional item of INR 0.77bn related to the new Labour Code.

Provision for tax during the quarter stood at INR 2.25bn. Consolidated net profit more than doubled to INR 6.92bn, compared with INR 3.15bn in the corresponding quarter of the previous year.

The company said both original equipment and replacement sales were robust during the quarter, aided by higher demand following the reduction in goods and services tax rates. Rural demand also improved, supported by good and widespread monsoons.

MRF said demand momentum from lower GST rates was expected to continue into the fourth quarter. Original equipment manufacturers were also expected to raise production levels, driven by higher anticipated sales and lower channel inventories.

The company said increased government spending on infrastructure, announced in the Union Budget, was positive for commercial vehicles and, in turn, the tyre industry. It also noted that trade agreements under discussion with several countries, including the European Union and the United States, could create export opportunities in the future.

The board of directors declared a second interim dividend of INR 3 per share, representing 30 per cent on the face value of INR 10, for the financial year ending 31 March 2026.

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TVS Srichakra Limited has approved a capital investment of up to INR 21 billion to expand manufacturing capacity at its Unit 2 facility in Rudrapur, Uttarakhand.

The decision was taken by the board of directors at a meeting held on recently, the company said.

The investment will be directed towards capacity addition at the existing plant, which currently has an annual production capacity of about 9.2 million to 9.5 million tyres. Capacity utilisation at the unit stands at roughly 80–85 per cent.

The proposed expansion is expected to raise capacity by about 40–45 per cent and is scheduled to be completed in the first half of the 2027–28 financial year.

The company said the investment would be funded through a combination of internal accruals and debt. The expansion is intended to meet growing demand for the company’s two-wheeler and three-wheeler tyres.

TVS Srichakra disclosed the development under Regulation 30 of the Securities and Exchange Board of India’s listing regulations.

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At a meeting of the Pirelli Board of Directors, the management presented an analysis of the evolving automotive competitive landscape. This environment is now defined by increasingly integrated and connected systems, such as software-defined vehicles and autonomous driving, which have transformed the tyre into a sophisticated, data-driven component. In this context, Pirelli’s pioneering Cyber Tyre technology – a hardware and software system that communicates in real time with both vehicles and road infrastructure – was underscored as a critical strategic asset. Its validity is confirmed by adoption from major prestige car manufacturers and relative agreements with the Apulia Region, Movyon and Anas for smart road services.

Following this assessment, CEO Andrea Casaluci presented a clear position, asserting that all Cyber Tyre activities must continue to be developed in a fully integrated manner with the rest of the Pirelli Group, both functionally and organisationally. He emphasised that management must align completely with the Group’s strategic and industrial approach, expressly rejecting any project that could lead to even partial compartmentalisation, separation or segregation of this business unit. The Board voted on this management consideration, resulting in nine votes in favour and five against. Directors Chen Aihua, Zhang Haitao, Chen Qian, Fan Xiaohua and Tang Grace cast the dissenting votes.

The management further detailed the substantial risks of fragmenting the Cyber Tyre operations, arguing such a move would be unworkable. It would critically undermine the integrated business model that relies on constant interplay between technology, innovation, production and marketing. Isolating the Cyber Tyre business would involve transferring related patents, thereby stripping Pirelli of free access to its own strategic know-how and contradicting core principles of the company Bylaws. This segregation would weaken technological development, erode Pirelli’s competitive edge and innovative leadership and reduce synergies while increasing costs through duplicated structures. Ultimately, it would trigger significant value destruction, impair financial solidity and still fail to address the limitations imposed by relevant US legislation.

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