The Tyre Recovery Association (TRA) has responded to the Environment Agency’s recently published review on waste tyre exports from the UK, describing it as an important step toward regulatory reform. The 170-page report, which examined the export of used tyres – particularly to India – identified gaps in the current regulatory framework and enforcement capabilities. The TRA acknowledged the report as a constructive analysis that addresses long-standing challenges, including improved tracking of waste tyre exports, and has pledged to collaborate with DEFRA and the Environment Agency to implement these measures.

While welcoming the progress, the TRA emphasised that further action is necessary to establish a circular economy and strengthen domestic tyre processing capacity. The association urged policymakers and regulators to view the report as an interim measure rather than a final solution.

Peter Taylor OBE, Secretary General, Tyre Recovery Association, said, “The TRA welcomes this report; it is a clear and helpful analysis of UK waste tyre exports. It sets out the shortcomings of the current regulatory framework and the EA’s ability to meaningfully enforce these regulations. This is a true step forward after several years of inaction. It includes welcome initiatives on tracing and tracking UK export of waste tyres; the TRA will work with DEFRA and EA to deliver on these. It is important, however, that the policy creators and enforcers [DEFRA and the EA] recognise this is just a staging post on the road to the full reforms needed. We will continue to work with the Government to achieve a zero-waste circular economy and sustain the UK’s capability to process end of life tyres.”

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Indian tyre maker sees steady growth despite European challenges

Apollo Tyres reported a four percent increase in first-quarter revenue to INR 65.61 billion, driven by steady growth in its Indian operations whilst European divisions faced challenging market conditions.

The Gurugram-based tyre manufacturer said consolidated revenue for the three months ended 30 June rose from INR 63.35 billion in the same period last year. However, operating profit declined to INR 8.68 billion from INR 9.09 billion.

Net profit jumped to INR 3.81 billion from INR 3.02 billion the previous year, excluding an exceptional restructuring cost of INR 3.69 billion that the company disclosed separately.

The results come as India’s tyre industry navigates mixed demand patterns, with the aftermarket segment showing particular strength whilst original equipment manufacturers face varied demand from automobile producers.

“This quarter’s results reflect solid execution and a focus on profitable growth,” said Onkar Kanwar, chairman of Apollo Tyres. “It’s encouraging to see Indian Operations performing in line with expectations -- driven particularly by strong momentum in the aftermarket segment.”

Kanwar said the quarterly performance demonstrated “the resilience of our business model and our ability to create long-term value for shareholders.”

The European operations faced what the company described as traditionally one of their seasonally weaker quarters, though management said performance was solid given challenging market conditions across the region.

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Germany's rubber industry faces growing challenges due to high energy costs, threatening its long-term competitiveness. The German Rubber Industry Association (wdk), alongside other mid-sized industrial sectors within the ‘Alliance for a Fair Energy Transition’, is pushing for immediate government action to introduce a competitive production electricity price. This measure aims to stabilise energy expenses and protect domestic manufacturers from losing ground in global markets.

Current relief policies disproportionately favour large-scale consumers, leaving small and medium-sized enterprises at a disadvantage with higher electricity rates. The wdk emphasises that an effective industrial electricity price must include cost caps, broader eligibility criteria and simplified access – addressing existing shortcomings where support has been insufficient, overly complex and burdened by bureaucracy.

Separately, the association highlights the need for a distinct decarbonisation electricity price to support industrial transformation toward climate-neutral production. This initiative should extend to more businesses, ensuring long-term investment security in electrification projects spanning at least a decade.

However, European Commission regulations, particularly the CISAF framework, currently limit national flexibility in implementing such relief measures. The wdk urges the German government to advocate for reduced bureaucratic hurdles, faster approvals and expanded EU aid frameworks to enable timely support for energy-intensive industries. Without swift intervention, the sector warns of irreversible damage to regional economic stability.

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German tier 1 supplier ZF Group has announced that it has secured three large test system orders including for powertrain, tyre manufacturing and testing, which marks its entry into the Indian powertrain and next-gen mobility segment.

ZF Group’s order, estimated to be several million euros, has been placed across India for a range of testing equipment. The 440 KW transmission test bench is the first of its kind in India. It features a unique 3E dyno configuration that connects directly to the device under test, eliminating the need for an intermediate gearbox. This design significantly reduces energy loss and improves performance, accuracy and efficiency. The system also includes a movable dyno that can be adjusted horizontally for greater flexibility.

Other significant orders include several R&D test benches for a leading tyre manufacturer. These benches will be used for testing rolling resistance (efficiency) and performing endurance and high-speed tests on passenger car and two-wheeler tyres. Additionally, three automated end-of-line (EOL) test benches for passenger car tyres have been ordered by another Indian manufacturer. These systems are used at the end of the production line to ensure product quality before the tyres are shipped out.

Akash Passey, President, ZF Group India, said, “This is a proud moment for ZF as we bring our advanced testing technology to India. These orders not just set a new benchmark in the segment but serve as a reference point for future projects in the region. These orders reinforce our commitment to innovation and excellence in engineering in automotive and industrial segments.”

With this move, ZF introduces a new portfolio of mid-size and large-size powertrain benches, tyre R&D testing machines and low speed uniformity and balancing test systems, which are tailored for the Indian market.

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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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