Finance Minister Nirmala Sitharaman unveiled the Union Budget 2025-26 on February 1, outlining measures to bolster the manufacturing sector, a move set to benefit the automotive industry.

A new Clean Tech Manufacturing Support Programme aims to boost domestic value addition in solar PV cells, EV batteries, motors and controllers. The initiative also expands the exempted list to include 35 additional capital goods for EV battery production.

Beyond manufacturing, the budget prioritises the broader EV ecosystem with support for battery recycling and charging infrastructure. Special focus is placed on advancing high-capacity battery technology and fostering research in the sector.

Welcoming the move, tyre makers opined that the impetus lays a strong foundation for India's continued economic resilience and manufacturing excellence. Thrust on green energy transition, manufacturing and ease of doing business will propel the automotive and tyre industries forward.

Furthermore, the budget strengthens India's push for domestic manufacturing with tax incentives including a full exemption from Basic Customs Duty on key materials such as cobalt powder, lithium-ion battery waste and scrap, lead, zinc and 12 other critical minerals. 

To further drive cost efficiencies, the government is reducing import duties on essential battery production equipment, a move aimed at lowering EV battery costs and making electric vehicles more affordable. The resulting decline in operational expenses is expected to accelerate the expansion of India’s EV battery industry and boost domestic production capacity.

Commenting on the developments, JK Tyre Managing Director Raghupati Singhania averred,” The Union Budget 2025-26 lays a strong foundation for India's continued economic resilience and manufacturing excellence. Thrust on green energy transition, manufacturing and ease of doing business will propel the automotive and tyre industries forward. Emphasis on clean tech manufacturing, with incentives for EV components and advanced mobility solutions, aligns well with automotive sector’s vision for sustainability. Additionally, the measures to strengthen global supply chain integration and streamline trade regulations will bolster India’s global manufacturing competitiveness. We look forward to leveraging these opportunities to drive innovation and sustainable growth.”

Speaking on the same lines, Apollo Tyres Chairman Onkar Kanwar said, “The Union Budget 2025-26 is growth-centric, reinforcing the Government’s commitment to strengthening India’s manufacturing sector and driving the evolution to cleaner mobility solutions. The Government’s focus on clean technology manufacturing under the National Manufacturing Mission, will spur the domestic EV industry and make the EVs affordable. The budget places significant emphasis on building India’s innovation and R&D capabilities while enhancing youth employability. Enhanced credit availability and easier compliance requirements supports the MSMEs, which are supporting the auto sector. Above all, the Union Budget provides significant measures to boost consumer spending across sectors by leaving more disposable income in the hands of the middle class.”

CEAT Tyres Managing Director Arnab Banerjee iterated, “Budget of India comprehensively addresses all key areas of economy covering agriculture, rural development, education, health, tourism and infrastructure. It has  new initiatives to provide finance for agriculture , startups and MSMEs. There is good amount of emphasis on “ease of doing business “ particularly in direct and indirect tax related compliances. Relief for middle class through lowering of income tax would help in higher disposable income that would boost consumption and personal investment. It is heartening to see further drop in fiscal deficit to 4.4% next year, this should augur well in managing the health of the government and also in managing inflation. Overall a well balanced budget.”

Leading tyre-retreading machinery maker Marangoni has unveiled a new strategic sustainability strategy for 2025–2027 that reaffirms its social and environmental pledges.

In order to direct and oversee its ESG (Environmental, Social, Governance) initiatives during the ensuing three years, the tyre retreading expert has voluntarily created a targeted action framework. The framework is in line with the 17 Sustainable Development Goals (SDGs) of the UN's 2030 Agenda. Marangoni claims that the plan was implemented in accordance with globally accepted standards, such as AccountAbility 1000 and the Global Reporting Initiative (GRI) guidelines, and that it is meant to function as a monitoring tool to periodically assess the company's progress as well as a guide for action.

The company has identified 17 specific initiatives as part of this strategy. These were established after a materiality study that took into account input from external stakeholders as well as internal input. Each of the 17 initiatives is built around three core pillars, namely supporting the ecological transition, integrating ESG principles into corporate governance and ensuring a safe, stimulating and inclusive work environment. The result is a ‘balanced approach’ reflecting management’s priorities and stakeholder expectations, said the company.

Trelleborg Group has finalised the purchase of National Gummi AB from the Swedish industrial group National through its Trelleborg Industrial Solutions business unit.

Extruded rubber profiles and gaskets for specialised industrial, automotive and construction applications make up the company offering. Mostly in Northern Europe, sales in 2024 were little over SEK 150 million. The production facility is situated in Halmstad, Sweden. The acquisition is in line with Trelleborg's plan to establish dominant positions in desirable markets. This deal excludes National's activities outside of extruded rubber profiles and gaskets, which will continue to be a part of the National group.

Jean-Paul Mindermann, Business Area President, Trelleborg Industrial Solutions, said, “This is an exciting addition to our portfolio. National has specialist capabilities and knowhow which will allow us to broaden our value-adding offering to customers across Europe.”

BKT has expanded its AGRIMAX range of agricultural tyres with the launch of AGRIMAX SPARGO SB, a new steel-belted version. The new tyre is aimed at row crop, vineyard and orchard operations to meet the specific challenges of farming environments where steep terrain, narrow row spacing and muddy conditions require precision and reliability.

The new tyre, which builds on the AGRIMAX SPARGO row crop tyre, has VF (Very High Flexion) technology, which enables it to bear the same load at lower inflation pressure. This helps to improve handling and comfort while reducing soil compaction. Steel belts improve the tyre's resilience to punctures, lessening the possibility of downtime and damage from sharp objects. At faster speeds, it also enhances riding accuracy. The polyester casing and steel belts work together to distribute stress evenly throughout the tyre, preventing uneven wear and extending tread life. By reducing vibration, a revised sidewall enhances riding comfort even further, which is especially useful for precise spraying operations.

The tread pattern of the AGRIMAX SPARGO SB is more open and higher than that of its predecessor since it has a deeper tread and smaller lugs. With a D-class speed rating that permits travel at up to 65 kmph, this design seeks to enhance road handling. Smoother transitions between field and road are made possible by the tyre's dual-layer mud ejection mechanism, which rapidly removes debris from the tread.

Dilip Vaidya, Senior President & Director Technology, BKT, said, "In the case of the AGRIMAX SPARGO SB, we have paid special attention to the casing design by using a strong polyester structure that offers greater strength, flexibility and durability than traditional materials. This choice enables the tyre to handle heavy loads while keeping deformation under control, improving the footprint and thus traction, stability and handling."

TBC Corporation, a joint venture between Michelin and Sumitomo Corporation, has entered into an agreement to divest its Midas franchise portfolio to Mavis Tire Express Service Corp., which operates a tyre retail chain across the United States.

The deal is expected to be finalised in the first quarter of the fiscal year 2025, subject to the approval of the competent authorities. This deal is a component of TBC's ongoing reorganisation, which intends to concentrate management resources on its core operations.

According to a statement issued by Michelin, “TBC distributes tyres and provides automotive repair and maintenance services in the US, Mexico and Canada. TBC identifies wholesale, distribution and Big O Tires, tyre retail focused franchise portfolio under TBC, as core businesses, leveraging an industry-leading network and scale, whereas Midas activity mostly relies on retail automotive services. The operation will enable TBC to focus on driving accelerated growth and value in its core businesses. It is also an opportunity for Michelin and Mavis to support and reinforce their commercial agreement.”