Japanese tyre maker launches cost-cutting initiative as US tariffs bite

Sumitomo Rubber Industries maintained its full-year profit forecast despite a sharp decline in first-half earnings, as the Japanese tyre maker launched a comprehensive cost-reduction programme to counter rising raw material costs and US trade tariffs.

The company reported business profit of 28.3 billion yen for the six months ended June 30, down 33 percent from the previous year, whilst sales revenue fell  three percent to 572.2 billion yen. Profit attributable to shareholders plunged 63 percent to 14.4 billion yen.

Despite the weak first-half performance, Sumitomo Rubber held its full-year business profit target at 95 billion yen, representing an eight percent increase from the previous year.

"At the initial planning stage for H1, we anticipated significant negative impacts from rising raw material costs, particularly natural rubber, as well as foreign exchange fluctuations," President and CEO Satoru Yamamoto told analysts. "Overall, performance progressed largely in line with our plan."

The company faces headwinds from US tariffs imposed under the Trump administration, with an estimated impact of 14.5 billion yen for the current fiscal year, down from an initial estimate of 18 billion yen following tariff postponements and rate reductions in Japan and Indonesia.

Project ARK targets 30 billion yen savings

To bolster profitability, Sumitomo Rubber launched "Project ARK," a company-wide cost-reduction initiative targeting 30 billion yen in cumulative savings by the end of 2027 from its 1.1 trillion yen annual cost base.

"By advancing Project ARK, which carries forward the direction of the Be The Change initiative, we intend to help build a robust management foundation that is resilient to such external changes," Yamamoto said.

The programme focuses on tyre production costs, shared administrative and R&D expenses, and non-tyre business segments. General Manager Shinji Araki, who leads the project, said the company expects to achieve "several billion yen" in savings this year, ramping up to approximately 10 billion yen in fiscal 2026.

Dunlop brand expansion progresses

The company began selling tyres under the acquired Dunlop brand in North America and Australia in May, following the completion of its trademark acquisition from Goodyear Tire & Rubber. Sumitomo Rubber plans to launch proprietary Dunlop products for the North American market in January 2026, with European sales to follow.

"By introducing differentiated products manufactured by the Company under the DUNLOP brand in Europe, North America, and Oceania, we aim to increase the proportion of premium products," Yamamoto said.

The company's proprietary Active Tread technology, featured in its Synchro Weather tyre launched in Japan last October, won multiple industry awards and is being developed for next-generation all-season tyres targeting European and North American markets for a 2027 launch.

Tariff impact manageable

Sumitomo Rubber began implementing price increases in the US  market in May to offset tariff impacts, with Managing Executive Officer Hidekazu Nishiguchi saying progress has been "generally in line with our plan."

The company estimates it can recover approximately 10 billion yen of the 13.5 billion yen tariff impact on its tyre business through price increases, with the remainder offset through cost reductions and expense controls.

"Since we primarily ship from Thailand, the tariff is applied to the export price from Thailand. As a result, we estimate the effective tariff burden to be around 12% to 13%," Nishiguchi explained.

For the full year, Sumitomo Rubber forecasts sales revenue of 1.215 trillion yen, unchanged year-on-year, whilst maintaining its interim dividend at 35 yen per share with a projected year-end dividend of 35 yen for a total annual payout of 70 yen.

The company's tyre sales volume is expected to decline four percent to 99.03 million units for the full year, though it continues to focus on premiumising its product mix, with premium tyres forecast to account for 46 percent of passenger car tyre sales, up from 44 percent previously.

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Tirupati Tyres Ltd reported a surge in annual profit for the year ended March 2025 and said it plans to diversify into new businesses, including gold mining, real estate and agriculture, as part of its expansion strategy.

The Mumbai-based company said profit after tax jumped to INR 9.96 million in fiscal 2025 from INR 884,000 a year earlier, on total income of INR 118.1 million compared with 4.1 million rupees.

“The company has diversified its scope of operations and altered its main objects to include new lines of business, inter alia, gold mining, real estate, and agriculture,” the board said in its annual report. It added that steps were being initiated to change the company’s name to reflect its broadened focus.

“In line with this strategic shift and to ensure that the corporate identity of the company is aligned with its broadened business focus and long term vision, the company now intends to change its name to more appropriately reflect its revised business activities and future direction. Necessary steps in this regard are being initiated in compliance with applicable laws and regulations,” said the company.

The board also sought shareholder approval to raise the ceiling for loans, guarantees and investments in securities to as much as INR 5 billion, and to allow foreign portfolio investors to own up to 49 percent of its equity capital.

Tirupati Tyres said the move was aimed at strengthening its capital structure and funding long-term strategic growth. A rights issue was proposed earlier in the year but was later withdrawn due to a lack of subscription.

The company has not declared a dividend for the year, citing the need to conserve cash to support expansion.

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Indian tyre retreader unveils automation strategy, launches new products despite 50% profit drop

Indian tyre retreading company Indag Rubber Limited is doubling down on digital transformation and research investments as it seeks to counter margin pressure from soaring raw material costs that halve annual profits.

The Delhi-based firm reported a profit after tax of INR 84.1 million for fiscal 2025, down 49.8 percent from INR 167.5 million, but outlined ambitious expansion plans centred on automation and product innovation during its annual general meeting.

“We are indeed in the era of digitalisation, automation, and AI,” Vijay Shrinivas, CEO of the company, said, announcing a complete automation of the mixing process at its Himachal Pradesh plant to eliminate human intervention and enhance consistency.

The company has invested in a state-of-the-art R&D facility established after the COVID period, which has already yielded results with the launch of Win Master, a new retreading product unveiled at Bharat Mobility in January 2025.

“This product is a direct outcome of our R&D initiatives and offers exceptional performance—delivering approximately 80 percent to 90 percent of the life of a new tyre,” the CEO said, adding its effectiveness had been demonstrated across several fleet operators.

Digital Infrastructure Overhaul

Indag has undertaken a comprehensive digital transformation over the past three years, transitioning from traditional ERP systems to SAP while implementing Salesforce.com for customer relationship management and automated compliance tools.

The company is targeting a 100 percent paperless environment at its plant level. It has partnered with e-Fleets to monitor real-time performance of approximately 6,000 tyres used by large fleet customers, generating valuable cost-per-kilometre data.

“This initiative has enabled Indag to collect valuable data on tyre performance... allowing the Company to effectively demonstrate the benefits of retreading to fleet owners and operators,” the company said.

Network Expansion Strategy

The company is aggressively expanding its retreader network across India, having connected with over 3,000 retreaders under loyalty programmes compared to its previous base. It operates 15 depots nationwide with plans to enhance reach and penetration further.

“Our company’s primary objective is to engage with these operators, educate them on cost-saving opportunities and demonstrate measurable benefits,” the CEO explained, targeting large fleet owners facing rising fuel, toll and operational costs.

Operational Excellence Drive

Beyond digitisation, Indag has improved operational efficiency by reducing its working capital cycle from 120 days to 70 days over five years, significantly better than the industry average of 100-110 days. The company achieved this through strict forecasting, improved vendor negotiations and reducing Days Sales Outstanding from 70 to 35 days.

Market Positioning

The investment strategy comes as India’s fragmented retreading industry faces consolidation pressure. About 11 million tyres are retreaded annually by over 10,000 retreaders, down from 13,000 previously, compared to the United States where just 650 retreaders process 16 million tyres.

“GST and demonetisation have really helped our industry to consolidate and formalise,” the CEO said, noting customers increasingly demand formal invoicing and standardised practices.

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Premium tyre manufacturer Hankook has earned significant recognition at the prestigious 2025 WhatTyre Awards for the fifth consecutive year. The UK-based tyre news and product comparison website, which uses a detailed algorithm to evaluate and compare tyres, placed multiple Hankook products on its winners' podium across several key categories.

Hankook’s flagship Ventus evo was awarded the Performance Tyre of the Year, commended for its innovative AI-assisted mixing process that precisely distributes silica for superior wet grip. The tyre also features a reinforced structure for shorter braking distances and is engineered for low rolling resistance, which enhances fuel efficiency and tread longevity. This model recently proved its high performance by achieving a joint fourth-place finish in a major 2025 summer tyre test against 52 competitors.

The company also secured the Electric Tyre of the Year title for its Hankook iON evo, marking the second year in a row this product has won the award. This accolade underscores Hankook's dedicated focus on the electric vehicle market, where its iON range is specifically engineered to meet the unique demands of EVs, such as handling instant torque and supporting heavy battery weight.

Beyond these two category wins, Hankook’s expertise was acknowledged in several other areas. The Ventus Prime 3 X received a Highly Recommended distinction in the SUV category for its balanced all-weather handling and responsive steering. Furthermore, the brand was named a finalist in three additional categories: Winter Tyre of the Year for the Winter i*cept evo 3 and both All-Season Car and SUV Tyre of the Year for the versatile Kinergy 4S 2 line. This breadth of recognition highlights Hankook’s consistent commitment to innovation and quality across its entire product portfolio.

Andrew Bogie, editor at Tyrepress and WhatTyre, said, “WhatTyre wants above all to raise the level of conversation about tyres. Too often, this highly technical product, the subject of huge research and development operations, which has a massive influence on automotive performance, the sustainability of mobility and road safety, is underrated as a distress purchase made in haste.”

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As the title sponsor of the 2025 Bridgestone World Solar Challenge (BWSC), Bridgestone Corporation introduced a new standard in sustainable motorsport by equipping teams with tyres composed of over 65 percent recycled and renewable materials. This initiative, centred on the company's ENLITEN technology, represented a comprehensive evolution of its sustainability efforts across the entire tyre lifecycle, from material sourcing to end-of-life recycling. The performance of these tyres was proven on the track, with victorious teams in both the Challenger and Cruiser classes utilising them.

The advanced materials were developed through strategic partnerships. In collaboration with ENEOS Corporation, Bridgestone employed precise pyrolysis technology to recover carbon black from end-of-life tyres, which was then used in BWSC tyres for the first time. Similarly, recycled steel was produced from scrap tyres and processed into bead wire with partners Sanyo Special Steel and Nippon Steel, marking another debut application for the race.

Beyond materials, the ENLITEN technology was fundamental to the tyre design, enabling crucial performance characteristics for solar vehicles such as ultra-low rolling resistance, reduced weight and superior wear resistance. This engineering allowed the tyres to withstand the event's 3,000-kilometre extreme conditions while maximising vehicle efficiency. The incorporation of Teijin Aramid's new Twaron Next material further enhanced the product's circular content.

Bridgestone also addressed the environmental impact of logistics by partnering with DHL and its GoGreen Plus solution. The shipment of tyres to Australia utilised sustainable marine fuel, achieving up to an 85 percent reduction in well-to-wake CO₂ emissions. Furthermore, the enhanced durability of the tyres meant each team required significantly fewer sets, reducing the total number supplied. After the event, a partnership with Australian company RubberGem will ensure the used tyres are recycled into high-quality rubber flooring.

This victory marks the third consecutive win in the Challenger class and the fourth in the Cruiser class for teams on Bridgestone tyres. By supporting this premier innovation challenge, Bridgestone reinforces its commitment to accelerating sustainable mobility and nurturing the next generation of engineers.

Challenger Class winner Elias Wawoe, Brunel Solar Team (Delft University of Technology), said, “The last time we won the BWSC was eight years ago, and since then, we have been working towards becoming world champion again. The Bridgestone tyres performed exceptionally well, especially in terms of wear resistance, supporting our journey to victory. The BWSC tyres were a great example of accelerating sustainability in the tyres; through the event, these efforts were showcased. What we try to show is the combination of innovation and striving for a sustainable future.”

Cruiser Class winner Kelvin To, VTC Solar Car Team (Hong Kong Institute of Vocational Education), said, “We have been working on the BWSC for more than 10 years, and winning this competition means a lot to us. Our students from engineering and design put classroom skills into the real-life 3,000-km project of the BWSC. We take part to showcase the latest technology in renewable energy and be part of the force that drives into a sustainable future. Bridgestone tyres were very reliable—no punctures over sand, pebbles and potholes—and they helped us save a lot of energy throughout the trip.”

Bridgestone E8 Commitment Award winner Joel Pitts, Iron Lions Solar Car Team (Greenville High School), said, “We are truly humbled to receive the Bridgestone E8 Commitment Award. Our students and teachers set a goal to build a world class solar car that would qualify and compete in the Challenger Class. This recognition affirms our commitment and drive to become world-class solar teams.”

Hiroshi Imai, Vice President and Senior Officer – Global Motorsports, Bridgestone Corporation, said, “I would like to express my heartfelt gratitude to all the teams, team staff, families, organisers and the many volunteers who contributed to the success of the BWSC. It was truly inspiring to witness the passion of everyone involved come together to create such a remarkable event. We are proud that our tyres equipped with ENLITEN technology supported not only the winning teams but many others throughout the challenge. As both a tyre supplier and the title sponsor, Bridgestone remains committed to supporting the realization of sustainable mobility and the development of future engineers and leaders through the BWSC. With passion, we continue to challenge the limits together with the teams and aim to apply the innovations born in this ‘mobile laboratory’ to future sustainable global motorsports activities.”

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