With increasing technology and service-oriented approach and thrust on transparency in the pursuit of delivering service excellence towards the end-user, tyre dealers will evolve to be seen as providing the values expected of a specialist and not a generalist, says Satish Sharma, President (Asia Pacific, Middle East & Africa) and Whole Time Director, Apollo Tyres. 

“In terms of the changes, we will see more transparency ushered in by the technology and change in mindset. The new generation is more data-oriented, so testing and other data will be asked. I believe the service aspect and data-oriented approach will get expanded. A ‘24x7 for 365 days’ kind of service availability will be seen. Retailers are still looked upon as generalists. More and more specialisation will be happening, as the tyre is an engineering product and you want the right quality, assurance and replacements. So, retailers will emerge as specialists. There are also some regulations, such as tyre labelling and end-of-life, coming in. I’m sure the tyre retailers will have a role to play in the regulatory changes that are happening. So, the evolutionary journey is happening in bits and pieces. But given that the change is speedy, we are hopeful that this is the direction we will go,” explains Sharma.

The Indian tyre retail business has witnessed tremendous changes in the recent past. Earlier, a tyre dealership business was not seen as an aspirational choice. Still, with the evolution of finance for commercial vehicle tyres, the emergence of passenger car and motorcycle tyres as a specialised business – which offers a lot from the service angle – is producing a new breed of entrepreneurs who see the tyre retail business as a vocational profession. 

“Today, we are seeing entrepreneurs who have gone from a single retail outlet to multiple retail outlets looking at the benefits of covering the geography. Many of them are also having multiple retail outlets with various brands. On the two-wheeler tyre side, the traditional tyre retail outlet is not able to cater to that market, but they are available at mechanical shops or even puncture shops. At some places where the scaling has happened, one has also seen the entry of some professionals,” adds Sharma.

Tyre service is also emerging as a source of revenue. Specialisations around fitment, alignment balancing, nitrogen filling and other services have generated a sizeable portion of revenues. As radialisation is happening in the commercial tyre segment, dealers are also expanding their business on highways.

New challenges are cropping up for dealers with the emergence of new business models, where tyre companies are catering to end-users directly through supplying tyres on rent or on a CPKM basis and selling on their own websites. However, Apollo Tyres prefers to keep its partners as an integral part of its new business models. Sharma explains, “Providing tyres as a service is happening in the commercial tyre segment, where few tyre companies go directly to the end-user. However, Apollo Tyres has never gone that route and does not believe in going that route. We sell and service only through our dealer partners, and that’s been our preferred choice. When we opt for new business models, we always take care of channel conflict in our organisation. Even if we have to provide services directly to the end-user, we will train our dealer partners to provide the services. That’s the way we handle it. And I believe that’s the right way to handle it. In the passenger tyre segment, many local dealers are selling tyres online with the help of e-commerce portals. That’s why you normally won’t find the desired product on these e-commerce portals, and it’s not a very efficient business as of now.

Apollo Tyres had launched an e-commerce portal, shop.apollotyres.com, for passenger car and two-wheeler tyre customers two years ago to cater to the online selling tyres business. With the portal, consumers can purchase their chosen tyres online and book an appointment with Apollo Tyres’ dealer nearest to their location to get the tyres fitted and serviced. The Indian tyre major also has a portal for commercial vehicle tyres. Consumers can directly buy tyres on the portal, but the commercial transactions are passed to the dealer servicing the customer’s needs. “However, this business model, again in its nascent stage, is not as if it’s put the world on fire. For e-commerce for tyres, there’s a long way to go, simply because the customer realises the quality of service you can actually get by going to the dealer counter and having a good relationship with a tyre specialist – because you need the services repeatedly. As the bouquet of services at a tyre dealer is increasing, you can go to a tyre dealer even for a puncture. If this business model takes off, we are already a foot inside the door,” adds Sharma.

Apollo Tyres will launch a digital experience centre to reach its targeted consumers widely. However, the company firmly believes that a real- life experience of the product better impacts the consumers. In line with this, it is making efforts to train its dealers, setting up a standardised format for its branded retail outlets such as Apollo Zones, Apollo Corner, Apollo Points and Apollo CV Zones. “With our branded retail outlets, we have changed the perception of a tyre shop from a dusty looking shop to a dust-free and air-conditioned outlet, where products can be browsed on digital screens. Products are placed so that one can touch and feel them. Our outlets are very friendly and gender-neutral to encourage women to purchase tyres independently. So, we engage our customers with products more meaningfully,” explains Sharma.

Apollo Tyres is also focusing on expanding its footprint in the rural area. With local entrepreneurs and service forces called rural experts, Apollo Tyres has around 4,500 touchpoints, including about 250 AVK/ ARD and more than 1,000 REDs , in the rural network at the start of FY21 . It also launched the ‘Apollo Tyres Sarpanch’ initiative in March 2021 to enable it to have the most comprehensive tyre distribution network in the rural segment. 

Apollo Tyres recently has launched its Vredestein brand in India. With the brand, the company will initially cater to the demand for tyres between 15 inches and 24 inches, which are generally needed for the luxury and executive premium segment. The company is also working with BMW to supply the Vredestein tyres for BMW 2 and BMW 7 series as OE fitment. “We are cherry-picking the business partners. To create awareness, we are associating ourselves with targeted communities and consumers. We are also engaging ourselves with golf tournaments and providing riding experiences on the F1 tracks,” adds Sharma.

In the tyre retail business, data will gain importance to generate new customers, retain older ones, serve them and manage the business more efficiently. However, dealers may be good at maintaining the balance sheets but they are yet to get hands-on with generating data on the best tyre models, sizes, brands and fast-moving inventories. As per Sharma, “Today, dealers have mistrust with the company manufacturers, and they don’t want to share their data on inventory, the movement, speed and velocity of the inventory at the same time. But as the dealers are getting more and more into digitalisation, they’re seeing the benefits of data. Their minds are also opening up. And so, it’s a journey which needs to be travelled.”

Apollo Tyres Ltd has secured a one-season shirt-sleeve sponsorship agreement with AS Monaco, one of French football's most successful clubs, to increase awareness for its premium Vredestein brand.

This partnership will leverage Ligue 1's ranking as the fifth most watched football league in the world to raise awareness of Vredestein's award-winning products among a large audience in France and abroad. On November 22, AS Monaco's home league game against Brest will have the new sleeve branding for the first time. The Vredestein brand will be heavily promoted at Stade Louis-II for the 2024–2025 season, including on player sleeves and LED screens around the field. Exclusive social media initiatives will further help make the brand prominent, reaching a large and interested audience.

Yves Pouliquen, Vice President – Commercial, Europe, Apollo Tyres, said, “This partnership is an exciting opportunity to strengthen Vredestein’s presence in one of our key markets. AS Monaco’s rich history and commitment to excellence mirror our focus on performance and innovation. We look forward to building a successful relationship with the club and celebrating its achievements this season.”

Thibaut Chatelard, Marketing and Revenue Director, AS Monaco, said: “We are delighted to welcome Apollo Tyres and its Vredestein brand to the family of AS Monaco partners. This collaboration makes sense in view of the values we share, such as the constant pursuit of performance and excellence. There’s no doubt that this new support will be precious for the rest of our season, which promises to be thrilling.”

Nexen Tire, a leading global tyre manufacturer, has launched the Nexen N´Blue S tyre, adding to its range of summer tyres and providing drivers with advanced safety, energy efficiency and superior driving stability in wet and dry conditions.

Developed using highly dispersed silica and equipped with an optimised structural design, the Nexen N´Blue S tyre provides reduced road noise and improved driving stability. The tyre features an innovative tread compound, formulated with hydrophilic fillers and microstructure-controlled polymers, and provides lower rolling resistance and exceptional dry and wet grip. The tyre also excelled in test results by demonstrating an 11 percent improvement in wet braking distance compared to its predecessor.

Apart from providing excellent performance, the Nexen  N´Blue S also scores high on the sustainability index. The tyre provides an eco-friendly solution for environmentally conscious drivers by minimising fuel consumption and CO2 emissions. The Nexen N´Blue S summer tyre is available in 58 sizes, which makes it compatible with different types of vehicles.

Kumho Tire Vietnam Co., Ltd. is all set to expand its investment project in Binh Duong province of Vietnam, with the phase 3 of expansion commencing in early 2025. This was discussed at a recent meeting between Vo Van Minh, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee (PPC), and Kim Hyun Ho, General Director of Kumho Tire Vietnam Co., Ltd.

The meeting was held on 13 November at the Administrative Centre of Binh Duong province, as per an official statement. Apart from the company’s investment till date and the planned investment for phase 3, the two also discussed about the challenges and obstacles regarding procedures and processes to have more land funds to expand the manufacturing plant, along with taking measures to tackle the obstacles. Kim Hyun Ho also conveyed to the PPC Chairman that Kumho Tire Vietnam Co., Ltd. belongs to South Korea's Kumho Tire Group and is currently ranked 10th in the car tyre manufacturing industry.

The company had invested in a tyre manufacturing plant in My Phuoc 3 Industrial Park in 2007 with a total initial investment of USD 308 million, which was supplemented by another USD 300 million in 2021. This extended the factory scale to six hectares and increased the production capacity to 12.5 million tyres annually. With the expansion in early 2025, the company will raise its total investment to USD 908 million and increase the factory's production capacity to 17 million tyres annually. The expanded capacity is expected to be operational by early 2026.

Yokohama-ATG, a leading manufacturer of all-terrain and off-the-road tyres, has expanded its Galaxy MFS 101 SDS range of forklift tyres with the launch of white, non-marking tyres.

The Galaxy MFS 101 SDS range consists of puncture-proof SDS tyres with extended wear limits designed for high-intensity working shifts and long durability. These are premium, solid rubber tyres developed for tough demands, a long service life and high driving comfort. The addition of white, non-marking tyres is specifically aimed at clean working environments.

Marked by a 3-stage construction process, the forklift tyres feature reduced heat build-up, effective shock absorption and minimised vibrations. The pattern design guarantees a smooth ride and good steerability thanks to its continuous centre lug and circumferential grooves. Furthermore, the flat walls and wide flat profile offer excellent stability when using a forklift for vertical stacking. The tyres are also equipped with anti-slip steel beads for improved rim fitment

In a case study on a CAT 2.5-tonne forklift that was used for handling heavy pallets on asphalt, the Galaxy MFS 101 SDS outshone the competitors with impressive performance. The tyre delivered an approximate 900 working hours before replacement against competitors’ 500 working hours.