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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Bridgestone has renewed its collaboration with game developer Milestone for the launch of RIDE 6, the latest title in the popular motorcycle racing franchise. This edition represents the most comprehensive instalment in the series to date, introducing new motorcycles, diverse terrains and authentic tracks. Continuing its role as the official tyre supplier, Bridgestone brings its real-world high-performance motorcycle tyres into the virtual environment. Players around the world can now experience the same grip and endurance that define the brand’s real-life products across roads, circuits and trails, thanks to the game’s updated dual-physics engine.

A major feature in this edition is the new RIDE Fest career mode, which immerses players in the journey of a professional rider competing against motorsport icons such as Casey Stoner and Troy Bayliss. Within this mode, a dedicated Bridgestone Challenge chapter allows users to test the brand’s tyres across various racing disciplines and surfaces, from endurance events to circuit racing. Bridgestone also sponsors the redesigned Riding School, a training module offering structured tutorials to help players refine their skills. The company’s motorsport expertise, particularly its success in the FIM Endurance World Championship, directly informs the tyre behaviour modelled in the game. Virtual riders must consider tyre degradation, respond to changing track conditions and make tactical choices, mirroring the strategic depth found in real-world racing.

The presence of Bridgestone has been expanded throughout RIDE 6, with enhanced branding featured across menus, tracks and gameplay elements. The tyre lineup itself has grown to include recent additions to the BATTLAX family, such as the RACING BATTLAX V03 slick, engineered for maximum circuit performance and faster lap times, alongside the road-legal RACING STREET RS12, which offers superior dry grip. For the first time in the series, off-road segments are included, enabling players to equip adventure-focused tyres like the BATTLAX ADVENTURECROSS AX41. Other available options include the ADVENTURE TRAIL AT41, the RACING BATTLAX W01 and the HYPERSPORT S23.

With more than 340 motorcycles from 21 manufacturers, all fitted with Bridgestone’s virtual tyre models, the game boasts the most varied selection in the franchise’s history. Built using Unreal Engine 5, RIDE 6 is now accessible on PlayStation 5, Xbox Series X|S and PC through Steam and the Epic Games Store.

Nico Thuy, Director Motorcycle at Bridgestone EMEA, said, “RIDE 6 is the most realistic and wide-ranging entry in the series so far, and that makes it the ideal platform to showcase our large premium motorcycle tyre portfolio and its performance. With expanded modes, new features and a stronger Bridgestone presence throughout the experience than ever before, the game takes our longstanding partnership with Milestone to the next level. Through the RIDE series, we’re both strengthening our leadership in motorcycle tyres and showcasing our racing legacy in a fun, engaging way to riders and gamers worldwide.”

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Porsche Carrera Cup North America is entering a new chapter defined by a significant technical partnership and the introduction of an updated race car. A multi-year agreement has been established making Pirelli the official tyre supplier for the championship, marking the first time in the series' six-year history that it will compete on Pirelli rubber. This collaboration reinforces the connection between motorsport engineering and road car performance, a link demonstrated by the bespoke Pirelli P Zero R and P Zero Trofeo RS tyres developed for the road-going Porsche 911 GT3.

The 2026 season will debut the new Type 992.2 Porsche 911 Cup car, an evolution of the brand's successful single-make racer with refinements focused on raceability and handling. It will compete in only four global championships, including the North American series. These cars will be fitted with the Pirelli P Zero DHG tyre, a control tyre already introduced across Pirelli’s global GT championships in 2025. For wet conditions, teams will use the Pirelli Cinturato WHB, the standard wet weather tyre for GT classes since last year.

The P Zero tyres used in the series will carry the Forest Stewardship Council logo, signifying a commitment to sustainable sourcing. This certification ensures the natural rubber originates from forests managed to preserve biodiversity and support local communities, with a supply chain that rigorously separates certified materials from non-certified sources.

The new partnership and the new car will make their on-track debut together during a series-wide test at Sebring International Raceway in mid-February. The 2026 championship season will officially commence at the same venue from 18th to 20th March, running in support of the IMSA WeatherTech Championship’s Mobil 1 Twelve Hours of Sebring.

Volker Holzmeyer, President and CEO, PMNA, said, “Porsche and Pirelli share a deep motorsport heritage and a commitment to innovation that carries from the track to the road. We’re excited to welcome Pirelli to our premier Porsche One-Make series as we usher in a new era with the 911 Cup and new Pirelli tyres beginning in 2026.”

Claudio Zanardo, President and CEO, Pirelli North America, said, “Pirelli is thrilled to partner with Porsche Motorsport North America as the tyre supplier for the Porsche Carrera Cup North America, adding to our extensive portfolio of top-level championships supported worldwide. This collaboration demonstrates Pirelli’s dedication to performance and innovation, bringing race-proven technology from the track to the road. Just as Porsche vehicles set the standard for driving excellence, our P Zero tyres define precision, handling and performance in both competition and everyday driving. With motorsport rapidly expanding across North America, attracting more fans and creating new opportunities to showcase high-performance engineering, we are excited to strengthen our presence and support this momentum. Taking on this challenge alongside Porsche, its teams, drivers and the iconic 911 Cup cars is an opportunity for continuous innovation, collaboration and growth throughout the season.”

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Nova Motorsport has solidified its position within historic motorsport by agreeing a significant long-term contract extension with Peter Auto, a leading organiser in the field. This renewed agreement reinforces the British brand’s status as a principal technical collaborator, now with an expanded scope of official supply duties.

Under the terms of the multi-year deal, Nova Motorsport will continue as the exclusive tyre provider for several of Peter Auto’s premier series, including Group C Racing, both Classic Endurance Racing categories (CER1 and CER2) and the 2.0L Cup. The partnership has been formally broadened to now also encompass the Sixties’ Endurance series, a key addition to its portfolio. This season for Sixties’ Endurance is set to run from the Espíritu De Montjuïc event in late March through to the HSR Daytona Classic 24 Hour in November.

The arrangement is a cornerstone of Nova’s historic racing programme, underlining its dedication to supplying proven Avon Motorsport tyre products across Europe’s most esteemed historic platforms. This capability is underpinned by the intellectual property and experienced technical team that transferred to Nova following its 2024 acquisition of Avon Motorsport’s assets from Cooper Tire. Logistical and trackside support for competitors will once again be managed by Peter Auto’s exclusive service partner Sodipneu.

By extending and deepening this relationship, Nova Motorsport strengthens its commitment to the historic endurance racing community. The partnership is poised to support the continued growth and international prestige of Peter Auto’s renowned series, placing Nova at the very heart of the discipline.

Daniel Stanton, Head – Sales and Marketing, Nova Motorsport, said, “We are proud to extend our longstanding partnership with Peter Auto, one of the most respected names in the historic and classic automotive racing community, through a new long-term agreement. This relationship marks the successful transformation of Avon Motorsport into Nova Motorsport, as Peter Auto enters the ASO/ACO era under the leadership of Marc Ouayoun. Historic motorsport sits at the heart of the Nova Motorsport business, and partnering with Europe’s premier historic race championships is the perfect expression of that focus. Adding the Sixties’ Endurance series, which concludes with the HSR Daytona Classic 24 Hour at Daytona Speedway in November, to the Nova Motorsport portfolio accelerates our core strategy and further aligns with our growth targets for the Nova Motorsport brand and Avon and Nova tyre products in North America.”

Marc Ouayoun, Managing Director, Peter Auto, said, “We are delighted to continue and expand our partnership with Nova Motorsport. This collaboration reflects a shared vision based on technical excellence and reliability to ensure authentic and competitive racing across all our series. This partnership also highlights our commitment to historic motorsport and its development, both in Europe and internationally.”

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Goodyear has reached a significant milestone in its global sustainability strategy with the completion of a major solar installation at its Kunshan facility. The 12.3 MW on-site project, which was finished in May 2025 and became grid-connected the following month, supplied 10 percent of the plant's power needs for the remainder of the year. Looking ahead, it is projected to account for more than 12 percent of annual electricity consumption. The system is designed to generate roughly 11,500 MWh of power each year, resulting in an estimated reduction of 7,500 metric tonnes of carbon emissions annually over its 25-year lifespan.

This advancement reinforces the company’s commitment to securing 100 percent renewable electricity for its manufacturing operations by 2030 and achieving total renewable energy use by 2040. Within the Asia Pacific region, cumulative solar investments now contribute more than 40 MW of on-site renewable capacity. Beyond the numbers, the project exemplifies a broader dedication to operational excellence and environmental stewardship, showcasing how innovation can drive meaningful progress towards a cleaner energy landscape.

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