Six currencies, with an estimated population of 184 million - the East African community exists around the Great Lakes Region. “The Cradle of Mankind” is what it is called. This region lies in the heart of Africa and is home to both flora and fauna as it may have existed in the primordial times, undisturbed – SMART.

Mobility has changed considerably in this region by the way the tyres here have found their way into this market. In 1998, Truck Tubeless Tyre Conversions began in Kenya and quickly spread out to the neighboring regions. Presently 95% of the tyres found in fleets are tubeless and there is 100% conversion rate on Passenger and 4x4 range of vehicles. It was the SMART thing to do. The millennium saw an influx of Fleet Management softwares, Tyre Management Contracts, with the help of Budini Tyre Management Software. Unprecedented tyre training, growing investments in tyre machinery, tools and accessories investments. Technology and processes peaked and the bubble burst.

On the tyre spectrum 12.00R20, which was the predominant tyre size, was replaced by the low profile 315/80R22.5 (not the 13R22.5) which continues to hog 60% of the truck tyre market. The 8.25R16 was replaced by the 265/70R19.5 and 295/80R22.5 (together with 12R22.5) replaced 11.00R20. On the tyre spectrum and front we were ahead of developed, space (nuclear) age countries like India and the Gulf where tubeless conversions were less and the predominant sizes remained to be 10.00R20 and 12.00R24 respectively.

Tubeless rims became the order of the day and even when Trilex Split rims (80 years technology) are still in use in the Gulf. For a market that churns out approximately 600,000 trucks tyre casings per year, tyre retreading is the environmentally SMART thing to do. The cold procured tread process replaced the hot casing damaging process.  East Africa has not been left  SMARTing in this field either.

What went wrong:

1.  Intelligent Organisations. Any intelligent system must be data-driven

The primary objective of any successful organisation is to analyse large pools of data accumulated over long periods of time in their areas of operations (This includes transporters, tyre importers and distributors and tyre manufacturers). Increasingly organisational decisions are NOT taken by managers’ intuition and common sense but algorithms and data derived electronically from recording of our interactions and experiences with customers. Selling tyres has ceased to be a contact sport it has degenerated in some quarters into a Nintendo like encounter.

Intelligent organisations normally SCALE (Sense, Comprehend, Act, Learn and Explain) their environment with managers/ owners / directors ceding authority over certain decisions while acquiring new capabilities and roles for themselves. As conjoined twins, SMART (Specific, Measurable, Achievable, Realistic, Timely) and SCALE goals must be matched.

Let me give illustration with a story. In Africa we love to do so. Reader’s discretion is advised!

A (SMART) priest arrived late at the foot of Mt. Kilimanjaro, Africa’s tallest mountain, for a climbing expedition the following day. Exhausted, he searched for a room in the nearest inn. Only one room was available which he was requested by the motel owner to share with a beautiful lady wearing a stunning fishy (SCALEy) dress who had arrived late for the same expedition. To make matters worse, there was only one mattress. The exhausted lady prepared and slept on one side of the mattress, while the honorable  priest laid the sheet and slept on the cold floor two meters away. The following morning at the breakfast table the priest formally introduced himself to the beautiful lady as asked her where she was from. She on the other hand enquired of the priest as to his mission at the Kilimanjaro. “ I have come to climb and conquer this greatest mountain in Mother Africa,” he said proudly trying to impress her. She paused and after a sigh said to  the priest in a low voice, “Tell me exactly how you intend to climb this mountain when you cannot SCALE up a six-inch mattress?!”  Moral of the story: No matter how good your SMART goals are, you must act on SCALE-ing the heights.

2. Smart Technologies portend a smart working force

Tony Nicolini – Founder of the Budini Tyre Software and Systems, puts it beautifully when he says “Technology is only as smart as the users want it to be.”  The exponential growth of data capturing capability has not been matched by its harnessing and channeling into useful avenues largely because investments are low in the field of tyre education and  tyre infrastructure. Having experience Tyre related trainings in different parts of the world, our region receives but a trickle of the much-needed skill laced training that would sharpen their senses in order to tyre SCALE better.

The three aspects related to Smart Tyre Technology are:

Smart transporters

Zul is a transporter who runs a successful bus company. Operating from the heart of Nairobi, to most parts of Kenya. He keeps meticulous records on all his tyre records. These records were the basis for decision making for a transport company that has had the least number of fatalities in the country. Zul represents about 5% of transporters in this region who have scrupulous, readily available  data that is open to scrutiny not only by his own company but can be used by suppliers.

In 2012 I had a chance to visit Tyre Heaven, a company in Sao Paulo. They invited Nicolini (Budini) and me to visit their premises. With over 700 trucks and trailers, there were there only three persons working in the tyre department. Cradle-to-Grave tyre data is maintained for all tyres. Once or twice a year, like a pilgrimage, representatives major tyre suppliers congregate in the transport premises to tender openly for 8,000 tyres.

Smart processes

Special Sales approaches to the market determine the success or failure or a sales person. Many transporters, tyre importers or dealers approach to own products with little comprehension on the conditions of use. Mismatch between tyres and vehicles, tyre and routes, have only added to the chagrin on the end-user. Professional ethics prohibit me from dwelling too much into these sales processes to end-users and dealers, but to say the least, these methodical approaches have no substitute. As a result of tyres being treated as a commodity, where price is the only point of discussion, SMART tyres with lipstick and high-heels have found their way into a hostile market that has unpaved roads, untrained staff and uncaring drivers in some instances.

The readers of this article may have had access to better tyre optimisation processes than the ones I will mention below. Yet I can say without a doubt now will match the dedication and follow-up that is offered by the Budini Tyre Management Systems.

• The Tyre Optimisation Process is a non-patented process that was arrived at by a team of tyre experts on casing (yet not tyre optimisation) in order to achieve the lowest cost per Kilometer in a particular fleet. Pocket Suit, Survey Web and TMS are worth a glance.

Feature Benefits and Evidence (FABEs) is the way tyres were sold, sadly price has over-shadowed all three since both  the purchaser nor the seller are reluctant to discuss the matters relating to performance. Benchmarking of tyre mileages across fleets is more often than not misleading.

Smart sales people

Ajay, Yves, Mick and Tony belong to a fading rare breed of people who were tyre  fleet problem solvers. These gate-keepers and well-trained mentors in process described above played and continued to give solutions and on-site training in the harsh environments. What is common about this people in how  SMART or wise they are. It is the extremely long span of attention they dedicate in their line of duty. It is therefore worrying that today when the tyre is being treated as a commodity and not a Safety Engineering piece of equipment, Africa and Africans without secure gate keepers and anti-dumping laws will fall prey to fast talking sales persons with tik-tok attention spans. If I were to be the Chief Tyre General –  Certain Tyres would only be sold on prescriptions.

In  South Africa, it was uncommon for representatives of different companies to meet at a major transporter and conduct a joint scrap and claim analysis. Just like doctors conducting a post-mortem, sample casings from each brand would be analysed and reported before they would rest back for a Friday  Brae and Beer. SMART. I know this may be happening in other parts of the word any it is the reason we now have the Radial Tyre Damage Book.

RFID, push alerts, Translogic tools, TPMS (Tire Pressure Monitoring Systems) are all example of Smart technologies that many sales persons, managers, owners and directors are aware of but are not capable of implementing just yet. However, training might be that essential key that unlocks the thirst for the much-needed necessities.

I end this article with the SMARTest thing I have heard this year and maybe for a long time. It comes from a great mind in Tyre Management “It does not matter how you record (label) tyres in whatever system you have….what matters is what you do with that tyre after that. A basic tyre system understood by all is the best way to involve others and come out with shining success. It beats even the tyre RFID systems - Marcio Olievera (Budini Systems – SMARTyre SCALER).

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Continental has been awarded a gold medal in the 2026 EcoVadis Sustainability Rating, securing 84 points out of 100. This elevates the automotive supplier into the global top five percent of companies scrutinised by the Paris-based organisation. The evaluation marked a shift, as the company was examined for the first time under the ‘manufacture of rubber tyres and tubes’ classification, having previously been benchmarked under ‘parts and accessories’.

The highest scores came in environmental stewardship and labour practices, with 86 points earned in each. EcoVadis analysts weighed climate action plans, management frameworks and public sustainability disclosures. The firm's certification portfolio, procurement policies and execution of internal processes also contributed to the final rating.

Continental has boosted renewable and recycled input utilisation to 28 percent of tyre production materials as of 2025, with a roadmap calling for 40 percent by decade's end. Current lines incorporate reclaimed polyester from plastic bottles, repurposed steel, silica from agricultural ash and synthetic rubber from circular feedstocks. The group is intensifying supply web oversight through certified sourcing and binding sustainability clauses for primary vendors.

Absolute carbon output from tyre manufacturing has dropped by roughly 180,000 metric tonnes over four years, driven by cleaner energy carriers. In early 2026, Continental permanently ceased coal and heavy fuel oil combustion across its global footprint. Plants now generate process steam via green electricity, biomass, biogas and a mix of LPG and natural gas for grid stability. Since 2007, EcoVadis has expanded to over 150,000 rated entities, offering a digital platform for buyers and suppliers to compare supply-chain sustainability performance.

Jorge Almeida, Head of Sustainability for Continental’s Tires group sector, said, “Even in our new industry category, with its different assessment criteria, we continue to rank among the top 5 percent of companies worldwide. Our particularly strong score in the environment theme highlights the measures and management approaches we have implemented to achieve our sustainability targets – from using renewable and recycled materials to further reducing emissions at our plants.”

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The Association of Natural Rubber Producing Countries (ANRPC) is convening a major sustainability forum in Kochi, India, on 19 August 2026. The day-long event, running from 9:00 AM to 4:30 PM IST at the Crowne Plaza, represents a critical milestone for the natural rubber sector. Building upon the foundational discussions from the 2025 ANRPC meetings and the recent COP30 conference, the forum will unite member governments, industry leaders, non-governmental organisations and compliance bodies to advance a unified sustainability agenda.

The core objective of the gathering is to secure endorsement for the ANRPC’s Sustainable Natural Rubber Guidelines. A primary focus will be on deploying open-source traceability tools designed to facilitate compliance with the European Union Deforestation Regulation while ensuring that these measures do not impose additional financial burdens on smallholders and small-to-medium enterprises. The thematic discussions will be structured around environmental responsibility, including net-zero strategies, economic sustainability to protect smallholder livelihoods and fair pricing and market adaptation through sustainable finance for emerging sectors like electric vehicles and green construction.

The programme will feature five dedicated sessions covering net-zero pathways, national progress reports from India, Malaysia and Thailand and industry case studies from Indonesia, Cambodia and Vietnam. A key panel discussion will see government representatives and supply chain actors making future commitments. Attendance is targeted at ANRPC member states, supply chain stakeholders, rubber associations, environmental groups and relevant compliance organisations.

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Tolins Tyres Ltd has announced that its wholly owned subsidiary, Terra Rubber Pvt Ltd, has entered into a purchase agreement with Cochin Reclaim and Rubbers Pvt Ltd to acquire plant and machinery as part of its capacity expansion and backward integration strategy.

The agreement, executed on 1 July 2026, involves the purchase of identified plant and machinery from Cochin Reclaim, an unrelated third party. According to the company, the acquisition is intended to strengthen Terra Rubber's manufacturing capabilities through increased capacity and greater backward integration.

Under the terms of the agreement, Terra Rubber will acquire the machinery on an "as-is, where-is" basis. The subsidiary is required to remove the equipment from Cochin Reclaim's premises within 60 days at its own expense. Ownership of each item will transfer only after full payment has been made and the machinery has been physically removed.

Tolins Tyres said the transaction is a routine purchase undertaken in the ordinary course of business and will have no impact on the management or control of the listed company. It added that neither Terra Rubber nor Tolins Tyres holds any shareholding in Cochin Reclaim.

The company also confirmed that the transaction is not a related-party transaction, has been negotiated on an arm's length basis, and that Cochin Reclaim has no relationship with the company's promoter group or board of directors.

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Nokian Tyres delivered a sharp improvement in second-quarter profitability as higher sales volumes, stronger pricing and lower manufacturing costs boosted earnings, while the company said it is entering a new phase focused on profitable growth after completing its major investment programme.

Net sales rose 10.6 percent year on year to €379.9 million in the April–June quarter, while operating profit more than doubled to €34.8 million from €14.8 million. Segment operating profit increased 71 percent to €45 million, driven by higher sales and improved manufacturing efficiency.

For the first six months of 2026, revenue increased 7.6 percent to €659.6 million, while segment operating profit climbed to €40.7million, more than five times the €7.8 million reported a year earlier. Operating profit returned to positive territory at €17 million, compared with a loss of €21.1 million in the first half of 2025.

"We delivered a strong quarter in line with our strategic ambition," said Paolo Pompei, President and Chief Executive. "Operating profit increased by 136 percent, driven by higher sales volumes and enhanced pricing."

Passenger car tyres lead recovery

The Passenger Car Tyres business remained the principal growth engine, with quarterly sales increasing 13.9 percent to €235 million, while segment operating profit more than doubled to €35.5 million. Heavy Tyres also returned to growth, posting a 10.4 percent increase in sales, although profitability at retail chain Vianor remained under pressure from cost inflation and seasonal factors.

Chief financial officer Timo Koponen said higher sales volumes remained the largest driver of earnings improvement.

"The Passenger Car Tyres continued their very strong performance also in Q2," he said, adding that the business had benefited from improved pricing, a richer product mix and lower raw material costs.

Management also highlighted six consecutive quarters of positive price and mix development, reflecting its strategy of moving further into premium products and larger rim-size tyres.

Romania becomes a strategic growth engine

Nokian Tyres said its new manufacturing facility in Romania is performing ahead of plan and is playing a key role in rebuilding capacity following the exit from Russia.

Sales in Central and Southern Europe rose 31.3 percent during the quarter, supported by higher production from the Romanian plant. "Everything is developing in this area according to plan," Pompei told analysts, referring to the Romanian factory.

He added that the new manufacturing footprint, together with recently launched products, was enabling the company to regain market share.

"We lost a significant amount of sales when we couldn't leverage our manufacturing facility in Russia at the end of 2022. Now, obviously, we are approaching the market with a new spirit, regaining market share in all the key markets where we believe we can be successful."

The company said contract manufacturing would continue to account for around 10 percent of total production, allowing it to focus internal capacity on strategically important products.

Investment phase winds down

Having invested heavily over recent years to rebuild its manufacturing network, Nokian Tyres is now shifting its attention towards cash generation and returns.

Capital expenditure in the first half fell to €24.5 million, compared with €89.7 million a year earlier. The company expects full-year capital expenditure to remain below €100 million, substantially lower than previous years.

"Following the successful completion of our major investment phase, capital expenditure will be somewhat lower this year than in the previous year," Pompei said.

Koponen said lower capital expenditure and stronger earnings had improved free cash flow, although higher receivables linked to increased sales continued to weigh on working capital. He added that net debt declined by €49m during the quarter while liquidity remained strong.

Premium positioning remains central

Nokian Tyres continues to focus on premium products rather than competing in lower-priced market segments.

The company said all-season tyres continued to outperform the broader market, while its flagship Hakkapeliitta 01 winter tyre had received a positive customer response.

Pompei said the strategy remains centred on strengthening brand equity and improving margins.

"We keep pushing our premium positioning, strengthening our brand through strong marketing investments, new products, and, in particular, better prices," he said.

Outlook unchanged despite uncertainty

Nokian Tyres maintained its full-year guidance, forecasting revenue growth in 2026 and a segment operating margin of 8–10 percent.

While management expects replacement tyre demand to remain broadly stable, it acknowledged that geopolitical tensions, tariffs and raw material price volatility continue to create uncertainty.

"We continue to focus on executing our strategy, strengthening our premium positioning, and improving profitability," Pompei said. "While there is still work ahead, we are on the right path to deliver profitable growth and create long-term value for all our stakeholders."

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