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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The Vredestein Quatrac tyre has been named the top-performing all-season tyre by Germany's leading automotive publication Auto Bild Allrad. The tyre received the highest possible rating of ‘Exemplary’ after a rigorous group test against ten major competitors.

The assessment, conducted on a Volkswagen T-Roc fitted with tyres in the common 215/55 R17 size, evaluated performance across dry, wet and snowy terrains. Testing took place at specialised facilities in Germany and New Zealand, the latter chosen to replicate demanding European winter conditions. The Vredestein Quatrac demonstrated exceptional all-round capability, being praised for its balanced and secure handling on every surface.

Its performance was notably dominant in critical safety areas. The tyre achieved first place in both wet braking and snow grip and braking tests. Reviewers also highlighted its resistance to aquaplaning, confirming its reliability in heavy rain. Beyond traction, the Quatrac proved to be a quiet tyre, recording low noise levels that underscore its suitability for electric vehicles, where cabin quietness is paramount.

This latest victory continues a winning streak for the Vredestein brand, which also secured first place in the same publication's test the previous year. As part of Apollo Tyres Ltd, Vredestein has a long history in the all-season segment, dating back to the 1990s, and now offers the most extensive range of all-season products on the market. The Quatrac line includes both standard and high-performance variants, such as the Quatrac Pro+, and is engineered to provide safe braking and stability in all conditions. All tyres in the portfolio are designed to be compatible with modern hybrid and all-electric vehicles.

Daniele Lorenzetti, Chief Technology Officer, Apollo Tyres Ltd, said, “The Quatrac has shown once again that it is the leader in the all-season segment, thanks to superior dynamic capabilities and technical features that make for a safe and enjoyable drive, year-round. As a pioneer of the all-season category, we are continuing to invest in research and development to maintain our leadership position, and we are already looking ahead to the launch of a significant new Vredestein product in this space next year.”

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In a significant development for its brand visibility, Apollo Tyres has launched its logo on the jerseys of the Indian men’s cricket team. This unveiling occurred in Ahmedabad just before the start of the opening Test match against the West Indies, formally activating a major three-year strategic partnership with the Board of Control for Cricket in India (BCCI).

This prominent placement on the men's jersey follows the logo's recent debut on the sleeves of the women's national team during their encounter with Sri Lanka in Guwahati. Together, these events mark a pivotal corporate milestone, integrating the Apollo Tyres brand directly with the country's most beloved sport.

Cricket is widely regarded as the nation's passion, and Apollo Tyres frames its involvement as a profound commitment to celebrating this shared cultural fervour. The company characterises the partnership as more than a commercial strategy; it is an expression of national pride and a dedicated effort to bolster the sport's vibrant ecosystem. By aligning with both the men's and women's national teams, Apollo Tyres aims to support athletic talent and contribute to India's dynamic cricketing culture. The brand now looks ahead to a collaborative journey, anticipating a future filled with shared triumphs and inspirational performances on the global stage.

Neeraj Kanwar, Vice Chairman and Managing Director, Apollo Tyres Ltd, said, “Our logo appearing on the Indian cricket teams’ jersey is a moment of great honour for us. Cricket unites the nation like no other sport, and through this association, we aim to go the distance with the teams and their supporters, embodying the spirit of determination, resilience and excellence.”

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Pirelli has confirmed its tyre allocations for the Moto2 and Moto3 classes at the Indonesian Grand Prix, held from 3 to 5 October 2025 at the Pertamina Mandalika International Circuit in Lombok. This event marks the championship's second consecutive Asian round, moving from Japan to the Indonesian island.

Pirelli’s focus for the Moto2 category is on soft compound rear tyres, a choice driven by the circuit's characteristics and historical data. Riders will have two options: the standard SC0 compound and a development tyre, the E0125. This development tyre uses the same soft compound as the SC0 but features an innovative carcass designed for 2025. Having already been used in eight previous Grands Prix, the E0125 has received positive feedback and is familiar to the competitors. For the front axle, riders can pair these rears with either the SC1 or SC2 compound.

The Moto3 class allocation remains unchanged, with riders having access to both the SC1 and SC2 compounds for the front and rear of their machines. Furthermore, anticipating the region's high risk of sudden, heavy rainfall, Pirelli has proactively increased the wet-tyre allocation for both classes. An additional SCR1 wet tyre has been added for each, bringing the total to five front and six rear wets per rider. This adjustment is a direct response to the challenging local conditions, where a hot and humid climate can see track temperatures soar to 60°C, yet be quickly interrupted by intense downpours.

Giorgio Barbier, Motorcycle Racing Director, Pirelli, said, "Lombok is not a particularly demanding track in terms of abrasiveness, but it presents critical issues related to high temperatures and variable weather conditions. At this time of year, the climate is hot and humid, with the asphalt reaching up to 60 °C, while episodes of intense and sudden rain are not uncommon. To cope with the latter scenario, we have increased the allocation of SCR1 wet tyres by one unit, so as to ensure the necessary coverage in the event of persistent rainfall. As for slicks, the history of this championship and WorldSBK confirms a clear preference for soft compound rear solutions.

"For this reason, in Moto2 we have planned the standard SC0 and its development E0125 evolution, already widely appreciated in previous rounds. We expect that the riders will also be able to quickly find the positive feeling already experienced elsewhere at Mandalika. It's still a track that puts more stress on the front axle than the rear, but both the SC1 and SC2 have already shown great versatility over a wide range of conditions, which is why we're confident they'll offer excellent support in this context too. In Moto3, as usual, the SC1 is the softest option available and will probably be the most chosen in the event of dry asphalt."

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The recent Farm Progress Show in Decatur, Illinois, served as a global stage for Goodyear Farm Tires to demonstrate its comprehensive product range to an international audience of farmers. As a key component of the larger Titan International exhibit, the display highlighted the company's commitment to agricultural innovation. A central feature was the company's proprietary Low Sidewall technology, an engineering approach that utilises a larger rim diameter and a reduced sidewall. This design is intended to deliver significant operational advantages by enhancing productivity, vehicle stability and overall field efficiency.

A major attraction at the event was the world's largest tractor, the Big Bud 747. This monumental machine is fitted with what are believed to be the market's largest tyres, a specific LSW model from Goodyear, underscoring the brand's capability to serve even the most extreme agricultural applications. The broader Titan exhibit also featured its entire family of brands, presenting a complete portfolio of off-road performance solutions. The stand was further animated by appearances from notable figures, including NASCAR driver Ross Chastain and the prominent Welker farming family.

The company provides extensive support to the farming community with a versatile selection of products. Its offerings include multiple series of tractor radials and specialised tyre designs for a wide array of equipment, from sprayers and compact tractors to harvesters and other industrial machinery, ensuring performance across diverse agricultural needs.

Natalie Dukes, Marketing Manager, Goodyear Farm Tyres Europe, said, “As a business, we attend a number of events across the world and the Farm Progress Show is always a true highlight for Goodyear Farm Tyres and the entyre Titan family. Thousands of people visited the Goodyear Farm Tyres stand over the three days and were impressed with the size and scale of the range. From our Optitracs through to LSWs and much more in between, we have a range to suit the needs of farmers wherever they are in the world and whatever their specific requirements and challenges. The presence of the Big Bud always brings a huge interest and this show was no different, and we were delighted to partner it with the newly-unveiled Demco Big Buddy grain cart. It was the perfect visual partner to the Big Bud and created quite the sight.”

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