Japanese tyre maker cites weak Asian demand, raw material cost pressures

Japanese tyre maker Sumitomo Rubber Industries Ltd posted a 34.7 percent drop in first-half business profit from its core tyre division, weighed down by weak demand from Chinese automakers and higher raw material costs.

The company's tyre business profit fell to 22.2 billion yen for the six months ended 30 June, down from 34.0 billion yen a year earlier, whilst tyre sales revenue declined 1.6 percent to 488.3 billion yen.

Sumitomo Rubber, which owns the Falken brand and recently acquired Dunlop trademark rights in key markets, said overseas original equipment sales dropped significantly due to production cuts by automobile manufacturers in Asia, particularly China.

The challenging market conditions come as major Chinese tyre brands have launched aggressive sales initiatives, creating a tough competitive environment for international brands, including Sumitomo's products.

"Overall sales volume in the Asia-Oceania region was also on par with the level of the same period of the previous fiscal year," the company said in its earnings statement, highlighting the difficulty of maintaining growth in its largest regional market.

In Europe, the company focused on profitability amid intensified price competition, leading to an overall decline in sales volume despite growth in all-season tyres under its Falken brand.

North American performance was mixed, with the flagship Wildpeak series maintaining strong sales but overall regional volumes falling below prior year levels due to continued market share expansion by competitors' low-priced products.

South America provided a bright spot, with sales volume increasing as the company worked more flexibly with distributors and benefited from reduced competitor imports following the rapid depreciation of the Brazilian currency.

The domestic Japanese market showed contrasting trends, with original equipment sales significantly exceeding prior year levels due to production cutbacks at some manufacturers during the same period last year. However, replacement market sales fell due to the discontinuation of low-priced products and declining orders for offtake products.

Raw material cost pressures continued to squeeze margins, with the company noting that "the effect of an increase in the unit price of tyre raw materials reduced the profit as compared with the same period a year ago."

Despite the challenging first half, Sumitomo Rubber maintained its full-year forecast for tyre business profit at 84.0 billion yen, up 1.2 percent from its previous guidance, citing expectations of declining raw material prices and yen depreciation benefits

The company completed its acquisition of Dunlop trademark rights for four-wheel vehicle tyres in Europe, North America and Oceania in May, launching operations in North America and Oceania as its first step in building global brand management around the Dunlop name.

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Maxxis tyres demonstrated their competitive edge during the 2026 King of the Hammers (KOH) off-road racing event, where affiliated athletes achieved notable success across several demanding vehicle classes. The most significant victory came in the premier 4900 UTV Hammers Championship, where competitor Jeff Martin secured the overall win. Martin, driving for the Blais Motorsports team in the Open UTV category, navigated the notoriously difficult Johnson Valley landscape on Maxxis Roxxzilla tyres. His performance was characterised by strategic driving and steady control, which allowed him to outpace the competition and claim the top position.

Further highlighting the capability of the Roxxzilla tyre, legendary motocross figure Jeremy McGrath turned in a remarkable performance by finishing ninth overall. This achievement was particularly impressive given that McGrath was competing in the Pro Stock NA class against a field largely composed of more powerful turbocharged vehicles. His top-ten result served as a testament to both his driving expertise and the reliability of his Maxxis rubber. The UTV Pro Modified class also saw Maxxis-supported athletes dominate the podium, with Scott Lesage taking first place and Tommy Thompson securing second.

The punishing nature of the event was evident in the experience of Can-Am driver Hunter Miller. After contending near the front of the 4900 race, Miller’s bid for victory was derailed by a steering malfunction. Despite sustaining significant damage to his vehicle, he demonstrated considerable resilience by continuing to fight through the field and ultimately finishing eighth in the Open UTV class. Before the main events, Maxxis athletes had already established a strong foundation during the earlier Desert Challenge, with Dustin Jones and Todd Zuccone each earning podium finishes in their respective classes. The collective results throughout the week’s racing reaffirmed the brand’s reputation for providing durable, high-performing and consistent tyres capable of handling the extreme and varied conditions that define the King of the Hammers.

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The Association of Natural Rubber Producing Countries (ANRPC) had the pleasure of welcoming Thomas Colonna, Head of the Asia Regional Office from the European Forest Institute (EFI), for a courtesy visit to its Secretariat in Kuala Lumpur on 13 February 2026.

The meeting provided a valuable platform for constructive dialogue focused on strengthening collaboration in sustainability and responsible natural resource management. Both parties exchanged views on potential joint initiatives, with particular attention given to supporting smallholder farmers across ANRPC member countries in the context of evolving global environmental requirements.

The discussions underscored a shared commitment to advancing cooperation and promoting resilient, sustainable practices within the natural rubber sector, marking a positive step forward in the relationship between the two organisations.

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RuLa-BRW GmbH, a prominent independent retreader of commercial vehicle tyres, a longstanding partner in the AZuR network and a key component of the German tyre circular economy, is celebrating its 25th anniversary. Based in Königs Wusterhausen near Berlin, the company is marking this milestone by launching a significant growth initiative focused on modernising its production capabilities and broadening its market reach.

Since its establishment a quarter-century ago, the company has evolved from a regional supplier into a recognised specialist in tyre retreading. Throughout this period, its core mission has centred on the economical reuse of high-quality tyre casings. This approach not only delivers substantial cost reductions for fleet operators but also plays a vital role in conserving raw materials, reinforcing the company’s longstanding commitment to sustainable practices within the commercial vehicle sector.

Looking forward, the company is undertaking substantial investments in state-of-the-art production technology. This strategic move is designed to elevate retreading quality, enhance operational efficiency and ensure robust competitiveness in the evolving market. This focus on technological advancement comes in response to several converging industry trends, including escalating raw material prices, stringent climate change regulations and the persistent pressure on fleet operating costs. These factors are collectively driving heightened demand for retreaded tyres as a viable, economical alternative to new tyres.

In conjunction with its production upgrades, RuLa-BRW is actively expanding its sales network to meet this growing demand. The company’s dual-pronged strategy of investment and expansion underscores a strong vote of confidence in the future of the retreading industry. By extending the life cycle of durable tyre casings, retreaded tyres significantly reduce energy consumption, material usage and carbon dioxide emissions, solidifying their role as a cornerstone of sustainable logistics and the broader circular economy.

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Falken Tyre Europe GmbH is embarking on a new brand initiative designed to put its all-terrain capabilities to the test in a practical, real-world environment. The Falken Adventure Camp, set to take place in New York State from 28 May to 7 June 2026, will place the Falken WILDPEAK A/T AT3WA tyre at the heart of an immersive driving experience. Participants will navigate a curated route through a diverse range of landscapes, from bustling urban settings to serene forests, gravel paths and remote countryside trails, showcasing the tyre’s adaptability.

The WILDPEAK A/T AT3WA is engineered for drivers whose journeys frequently shift between paved roads and unpaved terrain. This event aims to make that transition tangible, demonstrating the tyre’s competence in both everyday commuting and more rugged off-road conditions. Its selection for the camp is bolstered by a recent industry accolade; in September 2025, the tyre secured first place overall in a prestigious off-road tyre test, outperforming six competing all-terrain models. It was specifically praised for its exceptional performance on loose surfaces, including reliable traction, short braking distances and consistent lateral grip.

The Adventure Camp’s philosophy steers clear of extreme off-road challenges, instead focusing on authentic driving scenarios that highlight the tyre’s versatility. The planned journey is intended to illustrate how modern mobility can harmoniously coexist with nature-focused exploration. Enthusiasts interested in participating can submit their applications through the dedicated campaign website until the end of March 2026.

This initiative represents Falken’s broader strategic shift towards more experiential marketing. By moving beyond traditional product presentations, the company seeks to create memorable encounters where drivers can directly experience product performance. The goal is to make the tyre’s strengths tangible within genuine, relatable driving contexts, fostering a deeper connection between the consumer and the brand.

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