The GST Council’s 56th meeting delivered major relief for India’s tyre industry, slashing rates on new pneumatic tyres to tractor tyres. The move, aimed at reducing input costs and supporting rural demand, has been welcomed by manufacturers, though retreaders caution the reforms risk sidelining sustainability.

Sharad Matade and Gaurav Nandi

The Goods and Services Tax (GST) Council, in its 56th meeting, lowered the GST rates on a range of tyre and rubber products on Thursday, in a move aimed at easing input costs for the farming community and providing a much-needed relief to the domestic tyre manufacturing sector. 

The decision, taken by the GST Council, reflects the government’s strategy of supporting rural demand while simultaneously addressing industry grievances over high taxation and duty anomalies.  

One of the headline changes is the reduction of GST on latex rubber thread, which has been cut from 12 percent to 5 percent. Similarly, tyres and tubes used in tractors, a critical expense for farmers, have seen their GST rates slashed from 18 percent to just 5 per cent. 

Rear tractor tyres and their corresponding tubes, along with tyres specifically meant for agricultural tractors, will also benefit from this lower rate.  

The most significant change for the industry is the decision to reduce GST on new pneumatic tyres of rubber, excluding those used in bicycles, cycle-rickshaws, aircraft, and tractors, from the highest slab of 28 per cent to 18 percent. 

Automotive Tyre Manufacturers’ Association (ATMA) welcomed the decision, stating, “Lower GST on tyres will translate into more affordable mobility for millions of users, starting from farmers and small traders to transporters, motorists and logistics operators. It will also help bring down vehicle operating costs, which in turn reduces overall logistics expenses in the economy,” said ATMA Chairman Arun Mammen. 

ATMA further noted that the reduction in GST rates on tyres will support road safety. High prices often discourage vehicle owners from timely tyre replacement, leading to extended use of worn-out tyres, which is a known risk factor for accidents. With the tax burden eased, tyre affordability will improve, encouraging motorists and fleet operators to replace tyres at the right time, thereby enhancing vehicle and passenger safety on roads.

Industry reactions

According to ICRA, the GST rate cut on most tyre categories is expected to boost domestic replacement demand, which makes up nearly two-thirds of India’s tyre market. Lower operating costs will benefit transport operators, improving fleet profitability and cash flows, while reduced logistics costs across industries are set to fuel aftermarket demand.

In addition, lower GST on new vehicles in entry-level, mid-range, and tractor segments should support OEM tyre demand through higher production and sales. The cut on tyre cord fabric, though a small cost component, is also margin-accretive.

In addition to the broad restructuring of tyre-related tax slabs, the GST Council has also moved to reduce the levy on key raw materials used in tyre production. Tyre cord fabric of high tenacity yarn, whether made of nylon, other polyamides, polyesters or viscose rayon, will now attract a Goods and Services Tax of 5 percent, down from the earlier 12 percent.

Exuding optimism on the move, CEAT Chief Executive Officer Arnab Banerjee noted, “We welcome the GST Council’s decision to rationalise tax rates in the tyre sector. The reduction of GST on new pneumatic tyres from 28 percent to 18 percent and the further relief for tractor tyres and tubes to 5 percent, is a progressive step that will significantly benefit the industry. This reform will make tyres more affordable for customers across commercial, agricultural and passenger vehicle segments, while also supporting rural mobility through lower input costs for farmers.” 

Commenting on the market impact of the revised rates, Partner and Automotive Tax Leader at EY India for the Auto sector, Saurabh Agarwal, said, “The rationalisation of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry. The discontinuance of the cess is a particularly pragmatic step, which will provide much-needed support to a sector that is a vital contributor to our nation’s GDP.”

Commenting on the development, Shantanu Deshpande, Chairman, CII Task Force on Tyre and Managing Director, Michelin India, noted, “Thanks to the government for reducing GST rates on important products, including tyres. These changes will help lower costs for manufacturers and make tyres more affordable for consumers, while also enabling simplification and ease of doing business for the tyre industry. These changes complement the robust growth and improvement made in our road infrastructure and will further boost the growth of the industry. The new rates will support local manufacturing, encourage investment, increase business volumes and help India become more self-reliant in tyre manufacturing. We deeply appreciate this enabling decision.”

Commenting on the issue, Senior Vice President, India & SAARC, Yokohama-ATG, Anuj Thakar, said, “The cut in GST from 18 percent to 5 percent on tractor tyres and tubes and 28 percent to 18 percent on new pneumatic tyres is a historic reform that will directly benefit the farmers and off-highway tyre customers in India. As makers of Alliance and Primex Tires, we see this GST reduction as an opportunity to assist our consumers in choosing the right application-specific mobility solutions at lower operating costs.”

Retreaders’ woe

While the council’s move is slated to benefit the OE and aftermarket, retreaders aren’t happy. 

Tyre Retreading and Education Association Chairman Karun Sanghi said, “The GST on retreading remains stuck in the same slab despite representations to the GST Council even two weeks ago. The government promotes recycling and reducing carbon footprint, but has overlooked retreading in its policies. Tractor tyres have GST reduced to 5 per cent, while retreading is still at 18 per cent. This narrows the price gap between new and retreaded tyres, hurting demand for retreading and undermining recycling and carbon goals. Ideally, GST on retreading should have been reduced to 5, in line with new tyres.”

Currently, 80–90 percent of the retreading market is truck tyres, while 10–15 percent is farm, OTR and tractor tyres. The industry expects a significant impact on the tractor and commercial segments. 

However, Sanghi noted that as an association, they will continue to approach the government, highlighting the retreading and environmental benefits, though lobbying power is far weaker compared to other organisations in the industry, which may explain why retreading’s concerns are often sidelined.

While the GST cuts mark a win for tyre makers and farmers, retreaders remain burdened by an unchanged rate. This threatens recycling demand and carbon reduction efforts even as affordability improves for new tyres. The industry now looks to the government for parity that balances growth with environmental goals.

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Maxxis Rubber India has been presented with an Appreciation Award from the Ahmedabad Rural Police in recognition of its support during VIP movements. The accolade was conferred by Superintendent of Police Om Prakash Jat, acknowledged for his role in fostering community safety and collaboration through his leadership.

Guided by its core principles of respect, care and appreciation, the company emphasises its commitment to quality, service and trust alongside cooperation with authorities. Expressing gratitude to the police department for acknowledging its efforts, Maxxis stated that the honour reinforces its dedication to integrity and public safety partnerships, motivating the organisation to continue contributing with the same unwavering commitment and a focus on building stronger, more resilient communities every single day forward together.

“At Maxxis, our core values – respect, care and appreciation – drive us beyond business. Whether ensuring 100 percent quality, service, trust in our products or standing alongside authorities for public safety, we believe strong partnerships build stronger communities. We sincerely thank the Police Department-Ahmedabad Rural Police for acknowledging our ‘unwavering support’ and ‘invaluable cooperation’. This honour motivates us to continue contributing with the same commitment and integrity,” the company acknowledged in a social media post.

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The organisers of the International Rubber Conference 2026 have opened exhibitor applications for the accompanying Rubber & Elastomer Technical Exhibition, with discounted early-bird rates available until 30 April 2026.

The conference will take place from 2 to 6 November at the Aichi International Exhibition Center (Aichi Sky Expo), bringing together global scientists, engineers and industry stakeholders working across rubber and elastomer technologies.

Exhibitors submitting applications by the April deadline will benefit from reduced participation fees. The final deadline for regular applications is 15 July 2026.

Held alongside the conference from 3 to 6 November, the exhibition is expected to attract more than 4,500 visitors and is regarded as one of the leading international platforms for showcasing advances in rubber science, materials engineering and industrial applications.

IRC 2026 marks the sixth edition hosted in Japan, following previous conferences in Tokyo, Kyoto, Kobe, Yokohama and Kitakyushu. Under the theme “Future Rubber Technology toward Sustainability”, the event aims to address evolving industry demands, particularly as Asia accounts for a growing share of global rubber production and consumption.

Organisers said the event will provide a platform not only for established players but also for emerging engineers and researchers to engage with international experts, fostering collaboration and technological advancement across the sector.

Applications and further details are available via the official conference website.

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Tegeta Green Planet, in partnership with the Wasteless specific waste management association, hosted the Georgia Rubberized Asphalt Summit (GRAS) 2026 in Tbilisi. This international conference was designed as a platform for exchanging global knowledge on sustainable road infrastructure and rubber-modified asphalt technologies, bringing together industry leaders and international experts to examine both the challenges and opportunities within the sector. A dedicated panel discussion formed a central part of the event, fostering in-depth dialogue among participants.

Despite being widely adopted in United States, Portugal, Spain and across Europe for over six decades, rubber-modified asphalt remains unused in Georgia. This technology offers significant advantages over conventional pavement, including a service life of 8 to 10 years, superior resistance to water damage, reduced noise pollution and a substantial decrease in environmental harm caused by automotive waste. The summit’s organisers aim to address this gap by promoting responsible waste management and raising public awareness about the dangers of unprocessed refuse.

More than a forum for knowledge exchange, the summit served as a call to action, underscoring Georgia’s potential to become a regional frontrunner in sustainable infrastructure. Tegeta Green Planet, a subsidiary of Tegeta Holding established in 2022, was among the first companies in the country authorised by the Ministry of Environment and Agriculture to recycle used tyres, oils and batteries under extended producer responsibility principles. The organisation operates by collecting specified waste types, managing their transport and recycling and ultimately processing these materials in line with circular economy models, thereby supporting the nation’s shift towards innovative green initiatives.

Ekaterina Kavtaradze, CEO, Tegeta Holding, said, “For Tegeta Holding, sustainable development is one of the most important principles of our operations, which is reflected in concrete solutions. I am delighted that Georgia has had the opportunity to host such a large-scale event. GRAS 2026 demonstrates that the circular economy can become a real economic priority in Georgia as well, bringing significant benefits to the country, as waste is transformed into a resource, creating economic advantages and reducing the negative impact on the environment.”

Shalva Akhvlediani, Director, Tegeta Green Planet, said, “Georgia is at a stage where infrastructure decisions can shape the economic and environmental outcomes of the next generation. This summit provides us with a unique opportunity to learn from the world’s leading countries and implement these lessons at the local level. Overall, the circular economy is the way forward: it allows us to transform waste, such as used tyres, into a useful resource, ensuring economic stability, environmental protection and sustainable development.”

Giorgi Guliashvili, Chairman, Wasteless, “Our goal is to implement a fully circular model in Georgia – from waste collection to recycling and the effective use of recycled materials. Starting this autumn, Georgia will launch its first high-tech tyre recycling plant, which will process used tyres collected throughout the country. Using recycled rubber in asphalt is a clear answer to the question of how the resulting raw materials are utilised. As a result of the plant’s launch, we estimate that we will produce up to 12–15 thousand tonnes of rubber crumb per year, which will allow us to use this material locally to build more durable and environmentally friendly roads. This will bring significant benefits to both the environment and the economy.”

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Sailun recently welcomed trade and media representatives from across the Nordic region to the Sailun Polar Drive 2026 event, where the focus was on hands-on testing of the new Alpine Evo2, Arctic 2 and studded Ice Blazer Spike winter tyres. Held under severe winter conditions, the gathering was designed to let participants experience the full capabilities of this new range through direct driving experiences rather than passive demonstrations.

Situated in Munio, Finland, 200 kilometres north of the Arctic Circle, the location offered consistently harsh weather that served as the ultimate proving ground. Around 120 guests, including journalists, original equipment representatives and retail partners from the Baltics and Nordic countries, put the tyres to the test across a variety of challenging surfaces. From loose snow and slush to polished ice and wet pavement, the Alpine Evo2, Arctic 2 and Ice Blazer Spike each had the opportunity to showcase their specialised winter performance.

The event took advantage of temperatures fluctuating between -20 and +5 degrees Celsius, creating the mix of snow, ice and wet roads typical of Nordic winters. Testing took place on a frozen river track straddling the Finnish-Swedish border, featuring dedicated sections for handling, acceleration, braking and drifting. The remote Munio area, known for its pristine natural environment, also reflected Sailun’s commitment to sustainability, which includes reducing energy use and emissions during manufacturing and developing fuel-efficient tyres. A fleet of Audi A3, Audi A6 e-tron and Audi Q6 e-tron vehicles allowed participants to assess not only performance but also comfort, low noise and energy efficiency.

Beyond the driving sessions, the programme included an in-depth workshop covering tyre technology, the new winter product lineup and Sailun’s broader brand direction. Attendees also had ample opportunity to engage directly with members of Sailun’s management team throughout the event.

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