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.

As part of a strategic effort to increase its presence in the region's premium original equipment (OE) market, Kumho Tire has confirmed its plans to establish its first tyre production facility in Europe by 2027.

The company has shortlisted Poland, Serbia and Portugal as possible locations for the plant, which is projected to need an investment of more than KRW1 trillion (USD 705 million). The decision is closely linked to Kumho’s ambition to strengthen its partnerships with European automakers and was revealed by Kumho Tire CEO during the South Korean premiere of Kumho's new Ecsta Sport tyre line.

Kumho has recently secured OE supply contracts with major brands such as Mercedes-Benz, BMW and Volkswagen Group. At the moment, Kumho runs eight tyre production plants in China, Vietnam, South Korea and the US. Its capacity to compete in the premium OE market, however, has come to be perceived as being constrained by the absence of a European production base. Through the benefits of local production, the new facility will improve response to European client requests, save freight costs and shorten delivery times, all of which will strengthen the company's partnerships.

Sentury Tire USA has opened pre-enrolment for its two associate dealer programmes (ADPs), the Delinte HYPERDRIVE Associate Dealer Program and the Landsail Elyte Associate Dealer Program, underscoring the company’s commitment to rewarding dedication and partnership to the Landsail and Delinte brands.

The ADPs, which are customised for each brand and intended to encourage dealers, will formally start on 1 June 2025. Both programmes give dealers access to special benefits, incentives and strong tools to help them expand their businesses. This involves dependable customer service, effective marketing and worthwhile financial incentives to promote dealers' success at every stage.

Beginning in Q3, dealers may earn up to USD three per tyre through the Delinte HYPERDRIVE Associate Dealer Program. Dealers can receive retroactive benefits for purchases completed in Q2 if they register before 1 June. The awards are available for all Delinte PTR, LTR and the new DV3 LMD AS last-mile delivery tyres. For all Landsail PTR and LTR tyres, independent dealers that sign up for the Landsail Elyte Associate Dealer Program can also earn up to USD three per tyre. For customers who sign up by June 1, the new LMD 100 AS last-mile delivery is also eligible for the benefits and will get the same early bird incentive for Q2 2025.

No initial order is necessary. Dealers only need to register to begin making money. According to the monthly programme rewards structure, 48 tyre purchases each month are eligible for a reward of USD one per tyre, 120 tyres are eligible for a reward of USD two per tyre and 240 or more tyres are eligible for a reward of USD three per tyre.

ENSO, a London-based tyre manufacturer engaged in the production of sustainable tyres specially designed for electric vehicles (EVs), has launched its new ENSO Premium range of EV-specific ultra-high-performance (UHP) tyres aimed at drivers of high-performance EVs such as the Tesla Model 3 and Model Y.

Specifically designed for electric passenger vehicles, the ENSO Premium range comes with A/A EU-label ratings for both energy efficiency and wet grip. The tyres are designed to provide safety, increased range and a reduced total cost of ownership. Conventional tyre designs frequently fall short of the special performance needs of electric vehicles, which include greater vehicle weight, regenerative braking and higher torque loads. By lowering tyre wear and rolling resistance, ENSO Premium takes care of these issues.

The company is an authorised provider of replacement tyres for LEVC's electric taxis and has partnered with Uber to install its tyres in high-mileage metropolitan areas. The company now plans to grow throughout Europe and North America, and with ENSO Premium, it is now offering its services to individual EV owners throughout the United Kingdom. According to ENSO, the range offers advantages including longer tyre life and fewer replacements, lower energy usage, fewer charging stops and lower CO₂ emissions and tyre particle pollution.

Gunnlaugur Erlendsson, CEO and Co-Founder, ENSO, said, “We’re plugging a long-standing gap in the tyre market by offering EV drivers a purpose-built, affordable, premium EV tyre alternative that matches the innovation of their EV.”

Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, has announced a general price hike in North America for its SBS, SIS and HSBC product lines with effect from 1 May 2025.

Following a careful analysis of the effects of recently implemented tariffs, related cost increases and a conclusion that the company cannot independently absorb these repercussions, Kraton is adopting these pricing hikes, according to a company statement. The company further said that it will keep an eye on the scene and reassess these measures promptly in the event that conditions and US import tariffs alter.