However, as is evident now, we were caught unawares. Mutated strain of the virus took India in its stride as we were yet to work out a robust vaccination strategy. To curb the spread and manage the health emergency getting out of control in view of paucity of beds, oxygen and ventilators, a large number of states-imposed lockdowns and other restrictions which continue till date. 

As is normal under such circumstances, the economy bears the brunt and that is what seems to have happened. The fragile economic recovery seen in the second half of FY21 seems to have gone derailed. Consumer confidence has hit a new low as shown in a recent survey. Different rating agencies and multilateral organizations have downwardly revised the growth projections for the current fiscal year. From a bullish 11-13% growth (in view of base effect), the projections are now for growths in single digits only.

Needless to say, the pitch for economic revival is queered.  But, curiously, as Covid infections come off from the peak levels and the recovery rates go up, a new kind of confidence is building up. The infection rates are coming down with as much alacrity as they had peaked.

Certainly, there is no room for any complacency as premonitions of a third wave have already been made. However, the vaccination strategy to inoculate a large number of Indians by the end of the year holds much hope. It has been observed that those countries that have already inoculated over 50% of their population have witnessed much less morbidity and mortality rates.

What also holds out hope are a range of high frequency indicators which show the resilience of the Indian economy and the entrepreneurship that shines through whenever an opportunity is provided. The economic growth in the fourth quarter of last fiscal has been better than expected. From a contraction of 24.4% and 7.4% in the first and second quarters, the economy turned around in the third one with 0.5% growth and ended the year with 1.6% growth in Q4.

There are a range of other indicators too. Industrial performance measured by IIP grew by 22.3 percent in March. Merchandise exports grew by 197 percent in April. The output of eight core infrastructure sectors grew by robust 7% in March. Manufacturing PMI has remained at a high of over 55 in March and April. GST revenue collection set a new record of Rs. 1.4 lakh crore in April.

If the tyre  production data for FY21, as released recently, is anything to go by, Tyre Industry will continue to put the wheels of economy in motion against all odds. No doubt, Tyre Industry's overall numbers are down in FY21. However when looked closely, there is ample evidence that points to the resilience  in the sector. Truck & Bus (T&B) tyre production, the bellwether of economy has turned in better performance in FY21 over FY20. And this despite the fact that April’20 was a washout in view of nationwide lockdown. Both T&B and Passenger Car tyre production touched significantly higher figures in March this year with T&B tyre production crossing 20 lakh numbers, a historic high.

FY21 will also go down as a landmark year when Radial Truck & Bus tyre production equalled that of Bias tyre production. Tyre exports from India have charted an upward trajectory in the second half of previous fiscal as the stability was achieved in the exports markets.

Forecast of a normal monsoon (third in a row) and the upcoming festive season can provide much-needed impetus to the economy if vaccination drive accelerates and Covid appropriate measures are followed strictly.

No doubt, the situation is still in a flux, and it is too nascent to gauge the true impact of the second wave on economic growth.  But ramping up the vaccination drive and inoculating the entire adult population as early as possible will help.

And there is a major shift again in the vaccination policy. As this column gets on the editor’s desk, the federal government has decided to provide free coronavirus vaccines to states for inoculation of all above the age of 18.

FY 21 could not live up to the expectations that most Indians had. Hope the next year will. (TT)

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Prinx Chengshan has successfully concluded its inaugural Latin American distributor brand promotion conference, which drew participants from key markets including Peru, Brazil and Mexico. The event, organised under the theme ‘GROW TOGETHER, WIN TOGETHER’, underscored the manufacturer’s strategic commitment to fortifying its commercial ties and operational presence across the region.

Deputy Director Zhu Deqiang of the Asia-Africa-Latin America Sales Centre offered an extensive overview of the company’s global operations and manufacturing capabilities. His presentation was specifically tailored to address the varied road conditions, diverse vehicular applications and specific consumer preferences found throughout Latin America, with a particular focus on the company’s flagship commercial and passenger tyre ranges. This strategic communication effectively enhanced regional partners’ comprehension of the brand’s technical evolution and historical legacy.

Distributor representatives Rodrigo and Marcelo, handling the Chengshan and Prinx brands in Brazil, respectively, provided valuable frontline insights into channel development, promotional tactics and commercial performance. Their contributions served to illustrate the tangible market traction and upward trajectory of Prinx Chengshan’s product portfolio within the competitive Latin American environment. The conference agenda also included visits to local retail outlets, allowing attendees to observe the brand’s in-store presence firsthand while fostering stronger relational bonds through informal cultural exchange.

With a current commercial presence spanning more than 20 Latin American nations, Prinx Chengshan is leveraging this milestone event to propel its regional expansion strategy forward. Marking the commencement of its 50th anniversary year, the conference represents both a decisive move to consolidate its Latin American foothold and a critical component of its broader global aspirations. The company intends to continue adapting its tyre technology and after-sales support infrastructure to meet evolving local demands, aiming to drive sustained growth throughout the region.

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Citira, a Sweden-based company specialising in circular tyre management, has announced the acquisition of Lidingö Bilcenter, a well-established service point located on the island of Lidingö east of Stockholm. The transaction represents a strategic move to broaden Citira’s service network across the Stockholm metropolitan area, incorporating another essential facility into its growing portfolio.

Originally founded in 1995, Lidingö Bilcenter has cultivated a durable reputation within the local community over several decades. Since assuming ownership in 2016, Niclas Lind has reinforced the business’s standing through attentive, personalised service, ensuring consistent customer loyalty. Its advantageous position in one of Stockholm’s suburbs makes it a critical hub for passenger car maintenance in the region.

Under the new arrangement, the workshop will retain its existing personnel and operate from its current location while gaining access to Citira’s broader resources and logistical network to facilitate future expansion. Furthermore, Lind will assume a co-ownership role within Citira, solidifying the partnership beyond the initial transaction.

Urban Tibbelin, Head of Sweden at Citira, said, "We are thrilled to have Niclas and his team on board. They have built something with real staying power on Lidingö, with the kind of customer loyalty that is hard to earn. We look forward to having their quality service now come to the benefit of our customers and to supporting the continued development of the business on Lidingö.”

Niclas Lind of Lidingö Bilcenter said, "Joining Citira is the right next step for the business. Becoming part of a strong group means we can further strengthen both our service and product range, without changing what our customers value most. You will still meet the same team, in the same place, with the same commitment to quality, now with the added strength and support of Citira behind us. We look forward to this new journey together.”

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China's Zenith Group has formalised an agreement with the Egyptian Government to establish a manufacturing facility for automotive tyre components within the Sokhna Industrial Zone, a key part of the Suez Canal Economic Zone (SCZone). The project represents an investment of USD 300 million and is set to occupy a 320,000-square-metre site inside the TEDA Egypt industrial development area, reports Forbes Middle East.

Egyptian Prime Minister Mostafa Madbouly attended the signing ceremony, highlighting the initiative as a cornerstone of the state's broader strategy to bolster local manufacturing and draw advanced industrial investment. The new plant is projected to produce 120,000 metric tonnes of steel cord and 50,000 metric tonnes of bead wire annually while generating around 1,000 direct employment opportunities for the local workforce.

SCZone Chairman Walid Gamal El-Dien emphasised that the project aligns with the authority's objectives to attract heavy industries and enhance high-value manufacturing. The facility is expected to deepen industrial integration with existing tire producers in the zone, fostering a comprehensive production chain. By localising the production of essential steel wire, the project aims to diminish import reliance and strengthen supply chain resilience for Egypt's automotive and rubber sectors.

Significantly, approximately 30 percent of the plant's output is earmarked for export to the Middle East, Europe and the Americas. This development is part of a larger investment surge within the SCZone, which encompasses over 461 square kilometres. During the first quarter of the 2025-26 fiscal year, the zone attracted 80 new ventures worth more than USD 5.1 billion, surpassing the total from the entire previous fiscal year and underscoring the region's growing industrial momentum.

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The Tire Industry Project (TIP) has expanded its international network with the addition of the Thailand Automotive Tyre Manufacturers Association (TATMA) as its ninth Affiliate Member. This strategic integration marks a significant enlargement of TIP’s operational footprint into Southeast Asia, a critical hub for global tyre production.

Affiliate Members play a vital role in advancing TIP’s core objective of identifying and addressing pressing environmental, social and governance challenges throughout the tyre lifecycle. By contributing crucial regional intelligence, these members bolster TIP’s capacity to observe and interpret evolving industry dynamics, particularly within the burgeoning Southeast Asian market.

The inclusion of TATMA is particularly strategic given Thailand’s status as the second-largest tyre exporter worldwide. The nation is currently fostering a circular economy framework across its tyre sector, presenting substantial opportunities for collaborative research with TIP. This partnership will facilitate a vital exchange of expertise, especially concerning end-of-life tyre management and sustainable circularity practices, while TATMA also oversees local trade, quality standards and environmental compliance.

TIP’s affiliate network comprises trade associations selected for their regional economic impact and ESG relevance. This coalition includes representatives from Australia, India, United Kingdom, Europe, Japan, Korea, Canada and United States, collectively ensuring a comprehensive global perspective on tyre industry sustainability.

Larisa Kryachkova, Executive Director, TIP, said, “We are pleased to welcome TATMA to our network. The tyre trade associations’ local insights inform our global sustainability-related activities. Through our expanding and diverse membership, we are strengthening our shared vision of a sustainable tyre value chain.”

Keeratisuda Khakhong, Secretary General, TATMA, said, “We recognise TIP as the global platform for addressing key ESG challenges facing the tyre industry, particularly in the areas of tyre and road wear particles, ELT and sustainable raw materials. Through this partnership, we look forward to active knowledge exchange, sharing best practices and engaging with global affiliates to support the tyre industry towards a more sustainable future.”

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