Tyre Industry Welcomes GST cut; Retreading Cries Foul
- By Sharad Matade and Gaurav Nandi
- September 05, 2025
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.
Making a powerful debut at the 2025 SEMA Show in Las Vegas, Doublestar Tire captivated the global automotive industry with a display of innovative products. This premier event for customisation and accessories, which attracts top enterprises and professionals from over 130 countries, served as the ideal platform for the company to demonstrate Chinese manufacturing and technological advancement. Doublestar’s booth, emphasising high performance and green technology, became a central hub for visiting partners and industry experts.
The company’s strategy was precisely tailored to the specific demands of the American market, focusing on tyres for popular pickup trucks and SUVs used for long-distance highway travel. Key products included the Wildpuma AT10, noted for its exceptional wet grip and stable handling, and the durable, wear-resistant TBR tyre DLS918, designed for extended mileage. The vibrant on-site response saw numerous clients expressing strong collaborative interest, with Doublestar affirming its commitment to deepening its market presence in the United States.
Beyond simply meeting existing market needs, this successful appearance at SEMA proved Doublestar’s advanced capability to proactively identify and co-develop products that create new customer demand. The event ultimately served as a definitive demonstration of the brand's strength and its readiness to compete directly with leading international tire manufacturers on the global stage.
Continental Opens New Premium Tyre Dealership In Indore
- By TT News
- November 11, 2025
German tyre major Continental Tires has inaugurated a new Continental Premium Drive (CPD) dealership in Indore, Madhya Pradesh. The new outlet, operated by Tyre Tune Up, strengthens Continental’s retail presence in central India.
The new CPD store, spread across 3,000 sqft, is located in Mechanic Nagar, Indore. It is designed as a one-stop destination offering Continental’s premium tyre portfolio alongside advanced services such as computerised wheel alignment, precision wheel balancing, nitrogen inflation and premium alloy wheels.
Indore was chosen for its status as a commercial and cultural hub with an expanding vehicle base, aligning with Continental’s expansion strategy. Tyre Tune Up has been a part of Indore’s automotive journey since 1956.
Samir Gupta, Managing Director, Continental Tires India, said, “With this new CPD store in Indore, we are bringing Continental’s promise of safety, innovation, and driving comfort closer to customers in Madhya Pradesh. India is a key growth market for us, and through our ‘In the Market, For the Market’ approach, we continue to expand our retail network and strengthen customer connections across the country.”
Rafique Khan, Owner of Tyre Tune Up, said, “Tyre Tune Up has been a part of Indore’s automotive journey since 1956, and our partnership with Continental allows us to deliver global standards of quality locally. This CPD outlet will not only provide premium products but also ensure a seamless service experience that our customers have come to expect over the decades.”
Continental recently announced a strategic investment of approximately INR 1 billion in India to strengthen and expand its Passenger and Light Trucks business in the country.
Steelastic Appoints Evan Soerjaatmadja As official agent In Indonesia
- By TT News
- November 11, 2025
Steelastic LLC, part of the HEICO Companies, has officially announced a new strategic partnership with PT Pelita Esa for Indonesia. In this capacity, the company has welcomed Evan Soerjaatmadja as its official agent for the region.
With over 15 years of experience in the tyre industry, Soerjaatmadja is a respected professional known for his work with PT Pelita Esa Wanua and his representation of Bartell, a member of the HEICO Group. He will now collaborate closely with Hemant Agrawal, Steelastic’s Business Development Manager, to bolster customer support and strengthen the company's market presence throughout South Asia. Steelastic anticipates that this partnership will yield substantial new opportunities for its customer base.
The company statement read: “Going forward, Soerjaatmadja will work closely with Hemant Agrawal, Steelastic’s Business Development Manager, to enhance customer support and strengthen Steelastic’s presence across South Asia. We look forward to this partnership and the new opportunities it will create for our valued customers.”
Sailun Ice Blazer Alpine 2 Earns TÜV SÜD Approval
- By TT News
- November 11, 2025
The Sailun Ice Blazer Alpine 2 tyre in size 205/55 R16 94H XL has proven itself a formidable competitor in the winter tyre market, as confirmed by rigorous independent testing from TÜV SÜD. The examination, which pitted the Sailun tyre against four rival European products across 12 different disciplines, resulted in the tyre being awarded an official seal of approval. This prestigious endorsement officially validates the tyre's strong safety characteristics on wet and dry roads, its low rolling resistance and its quiet operation, with a measured rolling noise of just 69 dB(A).
Performance in key comparative tests was particularly strong, with the Ice Blazer Alpine 2 achieving top-tier results in acceleration, braking and handling on snow, plus braking on both wet and dry roads. This makes it an excellent all-around choice for the common driver seeking a modern, high-performance winter tyre. It delivers essential safety features including reliable grip and precise control on snow and ice, alongside superb braking on wet surfaces and commendable resistance to aquaplaning. Furthermore, it maintains excellent fuel efficiency.
These capabilities are derived from its advanced technical design. An innovative tread pattern and a specialised high-silica winter compound ensure the rubber remains pliable and effective in cold temperatures. The tread features a variably angled ice-gripping pattern at its centre for superior traction on ice and snow, while numerous closely spaced grooves in the shoulder blocks interlock with snow for enhanced control on snow-covered roads. For wet conditions, a directional HydraFlow pattern efficiently channels water away from the tread, promoting strong wet grip. The overall combination of narrower grooves and robust rubber blocks also provides consistent and responsive handling in variable winter weather. Finally, the use of a durable, wear-resistant rubber compound strikes an optimal balance between extended tread life and energy efficiency.
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