TBC Corporation, a joint venture between Michelin and Sumitomo Corporation, has entered into an agreement to divest its Midas franchise portfolio to Mavis Tire Express Service Corp., which operates a tyre retail chain across the United States.

The deal is expected to be finalised in the first quarter of the fiscal year 2025, subject to the approval of the competent authorities. This deal is a component of TBC's ongoing reorganisation, which intends to concentrate management resources on its core operations.

According to a statement issued by Michelin, “TBC distributes tyres and provides automotive repair and maintenance services in the US, Mexico and Canada. TBC identifies wholesale, distribution and Big O Tires, tyre retail focused franchise portfolio under TBC, as core businesses, leveraging an industry-leading network and scale, whereas Midas activity mostly relies on retail automotive services. The operation will enable TBC to focus on driving accelerated growth and value in its core businesses. It is also an opportunity for Michelin and Mavis to support and reinforce their commercial agreement.”

The Federation of Automobile Dealers Associations (FADA), the apex body representing automotive dealers in the country, has appointed Shailender Luthra as the State Chairperson of its Delhi Chapter.

Luthra will closely work with authorised automobile dealers to solve their issues, as well work with the Delhi government and departments to protect the interests of the automobile retailer community in the NCT region. He comes with over three decades of experience and has been a key person behind Brite Group, which operates dealerships for Skoda, Nissan and Royal Enfield brand in the Delhi NCR region.

Shailendra Luthra, said, “Accepting the stewardship of FADA’s Delhi Chapter is far more than an appointment – it is an invitation to re-imagine what mobility can mean for our capital city and by extension, for India. Delhi has always been a trendsetter; now it must become the proving ground for a new era of automotive retail that is sustainable, digitally fluent, and deeply human-centred. My priority is to unite our dealer community, policymakers, innovators and financiers around a single, compelling mission: to make Delhi the benchmark for transparent, future-ready auto retail. With my team of Regional Directors, we will transform today’s challenges into tomorrow’s opportunities and position Delhi as the lighthouse that guides India’s automotive destiny.”

Italian tyre manufacturer Pirelli has announced a strategic partnership with CTS, an independent tyre services provider in Northern Europe, to strengthen its commercial presence in the Nordic region, particularly in Sweden.

Under the agreement, CTS will acquire Däckia AB from Pirelli, which operates a network of 60 direct points of sale and 42 affiliates throughout Sweden. Simultaneously, Pirelli and Däckia have signed a supply agreement through 2030 that ensures the distribution of Pirelli products and maintains Pirelli’s position as the main supplier.

The transaction, subject to customary closing conditions and regulatory approvals, is expected to be finalised by July 2025.

For Pirelli, the alliance aims to establish a more structured distribution system with increased market coverage in a region it considers strategic for its high-value product strategy. The Nordic market is particularly attractive to Pirelli due to its significant presence in electric and hybrid vehicles, a segment where the company claims leadership.

“The Nordic region is a strategic market, for both positioning targets and the quality of the car parc, with a significant EV presence, a segment in which the company has a leading role. The transaction with CTS consolidates our strategic focus on the market, in cooperation with a partner with a complimentary focus in this business,” said Livio Magni, Pirelli Senior Vice President Europe.

For CTS, which operates 52 tyre shops and five retreading sites across Sweden, Finland, Norway, and Poland, the deal represents a significant expansion of its Swedish operations and reinforces its business model focused on sustainability and quality.

“The intended strategic partnership with Pirelli reflects our commitment to sustainability, quality and innovation, reinforcing our promise to deliver outstanding products and services to our customers. Through the intention to acquire Däckia we are building a full-service offering that integrates tire service, distribution, wheel alignment and retreading – all anchored by local workshops and sustainability at the core,” said David Boman, CEO of CTS.

Pirelli has recently invested in extending its “Sottozero Center” proving ground in Sweden, where its R&D department tests products on different surfaces, from snow to ice. The company said this research facility was instrumental in developing its recently launched “Ice Friction” tyre, a high-performance winter product specifically designed for the Nordic market and new-generation vehicles.

The partnership underscores the importance of strategic distribution networks for premium tyre manufacturers as they navigate changing market conditions and the shift towards electric mobility, which requires specialised tyre technologies.

French tyre maker Michelin reported a 1.9 percent drop in first-quarter sales as steep declines in original equipment demand offset gains in its replacement tyre business and improved product mix.

The Clermont-Ferrand-based company maintained its full-year guidance despite the challenging start to 2025. However, sales fell to €6.5 billion in the quarter ended 31 March, down from €6.6 billion a year earlier.

The company cited a 7.3 percent decline in tyre volumes, primarily due to weakness in original equipment markets across all segments, which continued the downward trend seen in the second half of 2024.

“In a highly volatile environment shaped by geopolitical and macro-economic uncertainties, the Group tightens up its steering and keeps its 2025 guidance unchanged,” Michelin said in its quarterly report.

Michelin’s automotive and two-wheel segment, which accounts for more than half of group sales, grew 1.2 percent despite a 3.3 percent drop in volumes, helped by robust demand for replacement tyres and an enriched product mix.

The company said its MICHELIN-brand tyre sales rose four percent in the replacement market, with particularly strong performance in high-value-added tyre sizes. Sales of 18-inch and larger tyres continued to grow in line with the market and now account for 67 percent of MICHELIN-brand sales, up four percentage points from a year earlier.

The road transportation segment suffered a 3.5 percent sales decline as original equipment markets in Europe and North America plummeted by 12 percent and 14 percent respectively. However, replacement tyre sales increased in the segment’s key markets in Europe, North America, and South America.

The most significant weakness was in Michelin’s speciality businesses, which saw sales drop 7.3 percent. This was driven by a steep decline in original equipment sales of agricultural and construction tyres, which fell by about 30 percent compared with the first quarter of 2024.

Mining tyre sales, however, showed resilience, matching the previous year’s levels despite a high basis for comparison. Aircraft tyre volumes also increased, boosted by growth in air traffic.

Despite the challenging market conditions, Michelin maintained its full-year outlook, expecting to outperform its 2024 segment operating income of €3.4 billion at constant exchange rates and to deliver free cash flow before acquisitions of more than €1.7 billion.

Michelin’s performance reflects the broader struggles in the automotive sector. Original equipment markets for passenger car and light truck tyres dropped 13 percent in Europe and 8 percent in North America. The company attributed this to persistent uncertainty about regulations governing the market’s transition towards hybrid and electric technologies and reduced consumer purchasing power.

In contrast, China’s original equipment market grew 10 percent, supported by government financial subsidies launched in the second half of 2024.

The first quarter also saw several developments for Michelin, including the launch of its new MICHELIN Primacy 5 range. The company says this range delivers an 18 percent increase in tread life while maintaining superior wet grip safety performance, reducing noise, and improving fuel efficiency by 5 percent compared with its predecessor.

Michelin also announced that it had started mining tyre recycling operations at its plant in Chile’s Antofagasta region and signed its first commercial contract for its WISAMO wingsail technology, addressing the challenges of decarbonising maritime transport.

Japanese chemical manufacturer Zeon Corporation reported a 10 percent increase in annual net sales to 420.6 billion yen ($2.75 billion) for the fiscal year ended 31 March 2025, buoyed by steady performance in specialty materials and improved elastomer shipments.

The Tokyo-based company supplies synthetic rubber and specialty chemicals to the tyre industry. Despite headwinds in some market segments, its operating income surged 43 percent to 29.3 billion yen.

Elastomer Business Shows Robust Growth

Zeon’s elastomer business, which includes synthetic rubbers for tyre manufacturing, posted a robust 65 per cent increase in operating profit to 10.9 billion yen on sales of 236.6 billion yen, up 10 per cent from the previous year.

The company’s synthetic rubber segment benefited from selling price adjustments that reflected rising raw material costs, particularly butadiene, which saw a 44 percent price increase in Asian markets during the fiscal year. The continued depreciation of the yen also contributed positively to overseas sales.

Production Recovery After Maintenance Periods

“Following the completion of regular maintenance at the Takaoka plants, shipments recovered quarter-on-quarter,” Zeon stated in its earnings presentation, though it noted that “a loose supply-demand balance, particularly overseas, led to flat shipments year-on-year” for speciality rubbers.

For general-purpose rubbers used in tyre manufacturing, the company reported a recovery in sales volumes following maintenance work at its Tokuyama and Takaoka plants, though shipment adjustments due to regular maintenance at its Singapore facility led to a year-on-year decrease.

Cautious Outlook For Fiscal 2025

Looking ahead, Zeon forecasts a 5 percent decrease in consolidated net sales to 409.5 billion yen for fiscal 2025, with operating income expected to decline 5 percent to 28 billion yen. The company cited anticipated yen appreciation and lower raw material costs as factors behind the projected decrease.

The elastomer business is expected to see a significant drop in operating profit to 7.5 billion yen, down 34 percent from the previous year, reflecting challenging market conditions.

Strategic Plan Forthcoming

Zeon will announce the third phase of its medium-term business plan on 11 June  2025. This phase is expected to outline the company’s strategy for navigating the changing landscape in the synthetic rubber and specialty materials markets.