Fortunately, the third wave of Covid pandemic proved to be a milder one with not much disruption to economic activities. The Union Budget presented last month with its growth-oriented agenda further boosted the sentiment. There is a set of numbers that paints a very encouraging picture of the economy. Foreign direct investment has touched record highs, exports are all set to breach the projected USD 400 billion mark during the current fiscal, GST collections have topped INR 1.30 trillion for fifth straight month and the start-up ecosystem in the country is scripting history.

However, there is a sense of unknown fears lurking around, leaving us with no room for complacency. While we can take solace in the fact that India continues to be the fastest growing large economy, uncertainty in the form of geo-political crisis is looming large on the horizon.

Much of what was feared as a follow-up of the war is already playing out in terms of worsening of the situation. Oil has breached USD 110 a barrel; equity markets have fallen and currencies weakened.

The impact of higher oil prices is going to last longer. Inflation, which has been within tolerance level, is raging its head again. If oil averages close to USD 100 a barrel for a prolonged period, the drag on GDP growth could be up to 0.9 percentage points, inflation could rise by around 1 percentage point and the current account deficit could widen by 1.2 percentage points, says the chief India economist of a leading MNC bank.

A finance ministry report has also admitted that recent geopolitical developments have introduced an element of uncertainty into the economic growth and inflation outlook. Russia's invasion of Ukraine has disrupted value chains and will hurt global and domestic recovery which was underway after the third wave of the pandemic. Worries over inflation and economic growth have surfaced against the backdrop of the turmoil in the global financial and commodity markets, it has stated.

Auto sector, particularly, is yet to come out of the slowdown. The continuing supply side challenges like semiconductor shortages, higher commodity prices and higher logistics cost were already providing headwinds to the industry. As the industry was on the cusp of recovery, Russia Ukraine war has queered the pitch as supply chains are expected to come under stress.

Auto industry is especially impacted in view of the Russia-Ukraine war as both the countries produce some of the key raw materials used in critical auto components such as semiconductors.

The shortage of semiconductors had hampered the production of vehicles, leading to prolonged waiting periods. If geo-political tensions continue for a longer period, it could have long term implications for the auto industry.

The crisis will spike the crude oil prices, which are poised to push up domestic fuel costs, increase the cost of ownership and hence dampen the consumer sentiments.

Commodity prices are already high, and there is a lingering worry that the government will soon hike the fuel prices, which will again have a huge inflationary impact on the overall manufacturing.

Tyre sector too has been bearing the brunt of slowdown in the auto sector. According to the latest data available, production of motorcycle, truck & bus and passenger car tyres – three large categories of tyres – declined by 29 percent, 21 percent and 2 percent, respectively, in the month of December.

There is no denying the fact that this is the time when prudent policies need to be pushed to support the growth amidst global political turmoil and the volatility in the financial markets. And we already have instances where enabling a policy framework has helped the industry win against all odds.

PLI scheme is one such initiative that has helped certain sectors including the auto industry immensely despite a challenging phase. Tyre Industry too has been a key beneficiary of curbs on indiscriminate import of tyres. The same has helped the industry meet the domestic requirements confidently and also cast a wider net in terms of exports. Tyre exports from India have gone up by 60 percent in value terms to reach a historically high figure of over INR 150 billion in the first three quarters of FY22 against the year-ago period. The figure is much higher than the value of tyres exported in the entire FY21 at INR 140 billion.

It is sincerely hoped that geo-political crisis will blow over soon and the political will of the current dispensation towards continuing reforms combined with enterprising zeal and innovative approach of the industry will help overcome the supply chain constraints for India to enjoy its rightful place in the sun.

Apollo Tyres Ltd has secured a one-season shirt-sleeve sponsorship agreement with AS Monaco, one of French football's most successful clubs, to increase awareness for its premium Vredestein brand.

This partnership will leverage Ligue 1's ranking as the fifth most watched football league in the world to raise awareness of Vredestein's award-winning products among a large audience in France and abroad. On November 22, AS Monaco's home league game against Brest will have the new sleeve branding for the first time. The Vredestein brand will be heavily promoted at Stade Louis-II for the 2024–2025 season, including on player sleeves and LED screens around the field. Exclusive social media initiatives will further help make the brand prominent, reaching a large and interested audience.

Yves Pouliquen, Vice President – Commercial, Europe, Apollo Tyres, said, “This partnership is an exciting opportunity to strengthen Vredestein’s presence in one of our key markets. AS Monaco’s rich history and commitment to excellence mirror our focus on performance and innovation. We look forward to building a successful relationship with the club and celebrating its achievements this season.”

Thibaut Chatelard, Marketing and Revenue Director, AS Monaco, said: “We are delighted to welcome Apollo Tyres and its Vredestein brand to the family of AS Monaco partners. This collaboration makes sense in view of the values we share, such as the constant pursuit of performance and excellence. There’s no doubt that this new support will be precious for the rest of our season, which promises to be thrilling.”

Nexen Tire, a leading global tyre manufacturer, has launched the Nexen N´Blue S tyre, adding to its range of summer tyres and providing drivers with advanced safety, energy efficiency and superior driving stability in wet and dry conditions.

Developed using highly dispersed silica and equipped with an optimised structural design, the Nexen N´Blue S tyre provides reduced road noise and improved driving stability. The tyre features an innovative tread compound, formulated with hydrophilic fillers and microstructure-controlled polymers, and provides lower rolling resistance and exceptional dry and wet grip. The tyre also excelled in test results by demonstrating an 11 percent improvement in wet braking distance compared to its predecessor.

Apart from providing excellent performance, the Nexen  N´Blue S also scores high on the sustainability index. The tyre provides an eco-friendly solution for environmentally conscious drivers by minimising fuel consumption and CO2 emissions. The Nexen N´Blue S summer tyre is available in 58 sizes, which makes it compatible with different types of vehicles.

Kumho Tire Vietnam Co., Ltd. is all set to expand its investment project in Binh Duong province of Vietnam, with the phase 3 of expansion commencing in early 2025. This was discussed at a recent meeting between Vo Van Minh, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee (PPC), and Kim Hyun Ho, General Director of Kumho Tire Vietnam Co., Ltd.

The meeting was held on 13 November at the Administrative Centre of Binh Duong province, as per an official statement. Apart from the company’s investment till date and the planned investment for phase 3, the two also discussed about the challenges and obstacles regarding procedures and processes to have more land funds to expand the manufacturing plant, along with taking measures to tackle the obstacles. Kim Hyun Ho also conveyed to the PPC Chairman that Kumho Tire Vietnam Co., Ltd. belongs to South Korea's Kumho Tire Group and is currently ranked 10th in the car tyre manufacturing industry.

The company had invested in a tyre manufacturing plant in My Phuoc 3 Industrial Park in 2007 with a total initial investment of USD 308 million, which was supplemented by another USD 300 million in 2021. This extended the factory scale to six hectares and increased the production capacity to 12.5 million tyres annually. With the expansion in early 2025, the company will raise its total investment to USD 908 million and increase the factory's production capacity to 17 million tyres annually. The expanded capacity is expected to be operational by early 2026.

Yokohama-ATG, a leading manufacturer of all-terrain and off-the-road tyres, has expanded its Galaxy MFS 101 SDS range of forklift tyres with the launch of white, non-marking tyres.

The Galaxy MFS 101 SDS range consists of puncture-proof SDS tyres with extended wear limits designed for high-intensity working shifts and long durability. These are premium, solid rubber tyres developed for tough demands, a long service life and high driving comfort. The addition of white, non-marking tyres is specifically aimed at clean working environments.

Marked by a 3-stage construction process, the forklift tyres feature reduced heat build-up, effective shock absorption and minimised vibrations. The pattern design guarantees a smooth ride and good steerability thanks to its continuous centre lug and circumferential grooves. Furthermore, the flat walls and wide flat profile offer excellent stability when using a forklift for vertical stacking. The tyres are also equipped with anti-slip steel beads for improved rim fitment

In a case study on a CAT 2.5-tonne forklift that was used for handling heavy pallets on asphalt, the Galaxy MFS 101 SDS outshone the competitors with impressive performance. The tyre delivered an approximate 900 working hours before replacement against competitors’ 500 working hours.