The downward revision in the world supply outlook for 2020 is largely due to the scaling down of the outlook for Thailand and India, according to ANRPC. The outlook on the production of NR in Thailand has been scaled down by 332,000 tonnes to 4.478 million tonnes. The country’s revised outlook for 2020 represents a 7.7% decline from the previous year as against a 0.9% anticipated fall reported a month ago.

The harvesting and primary processing of rubber in Thailand are severely affected by acute shortage of labourers. The migrant labourers from neighbouring countries and those from other provinces within the country find it difficult to reach back and resume the various farm management activities including tapping and primary processing. Aggravating the situation, tropical storm ‘Noul’ damaged rubber plantations in several provinces of Thailand in the last week of September besides causing heavy rains, flash floods, and water run-offs.

In August, northern Thailand was hit by the tropical storm ‘Sinlaku’ causing flash floods in 18 northern provinces of the country. The loss in output arising from previous year’s incidence of a new fungal leaf disease is already factored in. Abnormal leaf fall resulting from fungal diseases usually impacts on the yield performance of the affected for two succeeding years.

In India, the production anticipated in 2020 has been scaled down by 42,000 tonnes to 668,000 tonnes, ANRPC study said. The revised outlook represents a 4.8% decline from the previous year as against a 1.1% anticipated increase reported a month ago. The country’s NR production sector is impacted by a burst in the number daily new cases of Covid-19 infections in the State of Kerala since the beginning of September and the abnormal leaf fall caused by the outbreak of Phytophthora leaf disease during July and August. It is reported that the incidence of abnormal leaf fall during this year is less severe compared to the previous year.

Demand fall

There has also been a fall in world consumption of NR by 11.7% y/y to 8.151 million tonnes during the first eight months of 2020 (Jan-Aug), as per preliminary estimates. Based on the revised estimates and forecasts, the world consumption outlook for the full year 2020 is marginally scaled up by 67,000 tonnes to 12.611 million tonnes by representing an 8.4% fall from the previous year. The outlook for 2020 as reported a month ago was 12.544 million tonnes by representing an 8.9% fall from the previous year.

China has marginally revised up its consumption outlook for 2020 in view of an observed earlier-than expected economic recovery and acceleration in growth. A survey conducted by Nikkei revealed that the growth has been more pronounced in the manufacturing sector. The Manufacturing Purchasing Managers’ Index (PMI) improved to 51.5 in September from 51.0 recorded in August and 51.3 anticipated for September, according to a survey conducted by the country’s National Bureau of Statistics and the China Federation of Logistics and Purchasing. The country’s automobile sector has made a major turnaround. The domestic retail sales of passenger vehicles, including minivans, SUVs and multipurpose vehicles, increased 7.4% y/y in September 2020, the third straight monthly gain. The domestic sales of passenger vehicles had increased 6.0% y/y in August 2020.

As per the revised outlook, China is anticipated to consume 5.055 million tonnes of NR during 2020, down 8.9% from the previous year. The country’s consumption outlook for 2020, as reported a month ago was 5.043 million tonnes, down 9.1% from the previous year.

India has scaled-up its consumption outlook for 2020 to 923,000 tonnes from 900,000 tonnes reported earlier in the year. Auto sales in India have made a U-turn. The domestic sales of passenger car increased 31.3% y/y in September 2020, the highest growth over the past 27 months. The trend reversal in passenger car is driven by preference for personal mobility during the pandemic, gradual opening up of markets, easing of supply-chains, labour availability, and excitement of new vehicle launches. The domestic sales of two-wheeler grew 12% y/y in September 2020, the highest growth over the past 21 months. Sales of tractor increased 16% y/y during the month, the highest growth over many years in the past.  The domestic sales of LVC (Light Commercial Vehicles) and M&HCV (Medium and Heavy Commercial Vehicles) declined by 3.0% each during the month, after double digit declines till August 2020.

Looking ahead, according to ANRPC, the world demand for NR will remain constrained by the uncertainties clouding the global economic recovery, acceleration in the number of new coronavirus cases, reintroduction of control measures and partial lockdowns across countries and a likely long delay in the mass availability of the vaccine. On the positive side, there are increased hopes of further fiscal aid in the US to keep its economy on track. The White House has reportedly raised its stimulus offer from the earlier proposed $1.0 trillion to $1.5 trillion, and further to $1.8 trillion, though that is still short of $2.2 trillion proposed by the Democrats.

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Pirelli has developed a new rear tyre solution for the fifth FIM Superbike World Championship round at the Czech Republic’s Most circuit. The track is known for unusually high mechanical strain on rubber, particularly at the rear axle. To address this, Pirelli created the F0468 medium compound rear specification. Its compound matches the D0922, a tyre used at Most in 2025 and at Phillip Island across the previous two seasons. However, the F0468 features an entirely new internal structure for better race-long consistency and improved stability.

This newcomer evolves the E0829 specification, which shared the same compound and appeared at Phillip Island earlier this year. Riders who dislike the F0468 can still choose the D0922 development rear tyre. That option has already proven itself at the unique Czech layout and at Phillip Island, another tyre‑killing circuit. For qualifying and the Superpole Race, Pirelli has designated the standard soft SC0 as the reference rear tyre.

Beyond the premier class, Supersport and SportBike World Championship competitors will also race at Most. Supersport riders receive the same front choices as Superbike: soft SC1 and medium SC2. At the rear, Supersport entries can pick the soft SC0 or the medium SC1. SportBike competitors have used that same medium SC1 on both axles all season.

The tyre lineup thus gives every category familiar options alongside the new F0468. By blending a proven compound with a revised structure, Pirelli targets greater performance consistency without forcing riders to abandon the trusted D0922. Most’s punishing layout will serve as the ultimate test for both solutions.

Giorgio Barbier, Pirelli Motorcycle Racing Director, said, “Over more than two decades as supplier to the Superbike World Championship, Pirelli has built an extremely solid and versatile tyre range. The SCX supersoft rear solution now represents an absolute benchmark for riders and is used in most races on the calendar, with the soft SC0 becoming a valid alternative on some occasions. There are, however, some circuits that are particularly demanding on tyres, such as Phillip Island and Most, which by virtue of their layout and intrinsic characteristics require more specific solutions and more durable compounds, typically medium options.

“In these cases, development work focuses on improving key parameters such as performance and consistency over race distance: objectives that guided the design of the new rear solution in F0468 specification. To complete the allocation, riders will in any case also have the well-proven D0922 option available, which has shown that it can effectively handle the particular stresses imposed by this circuit. It will be interesting to assess whether the new F0468 medium will be able to raise the performance level beyond that of the D0922 further still.”

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Linglong Tire Vice President Feng Baochun represented the Chinese tyre industry at the Intelligent Electric Vehicle Development High-Level Forum 2026, held in Beijing in April. He addressed the session titled ‘New Stage, New Drivers, New Ecosystem – Market and Consumption’, sharing the latest insights into tyre market developments.

During his presentation, ‘Reinventing Product Values, Strengthening a New Smart Mobility Ecosystem’, he explained that profound changes in the automotive sector – driven by artificial intelligence, shifting environmental factors and globalisation – are redefining the role of the tyre. He stated that tyres are evolving from traditional safety components into critical parts that significantly influence overall vehicle performance.

To meet these demands, Linglong is actively building innovation drivers in global research, development and marketing, aiming to become a product and service provider for intelligent mobility rather than remaining a classic tyre manufacturer. The company currently focuses on optimising rolling resistance. Through new sustainable materials and advanced compound technologies, Linglong has achieved a balance between energy efficiency and performance.

This balance is an indispensable requirement for major national and international automotive manufacturers. Linglong continuously researches, develops and tests with these partners to meet strict original equipment tire standards, reinforcing its commitment to the new smart mobility ecosystem.

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Balkrishna Industries Ltd (BKT) has unveiled an ambitious expansion and investment roadmap aimed at more than doubling its revenue to around INR 230 billion by FY30, backed by a cumulative capital expenditure of INR 68 billion.

The company said the investment programme would strengthen its leadership in the off-highway tyre (OHT) segment, expand carbon black capacity and accelerate its entry into India’s on-highway tyre market. The strategy forms part of BKT’s long-term plan to achieve an estimated 8 percent global market share in the OHT segment by FY30.

BKT has already announced INR 13 billion of capex for OHT tyres in August 2024 and an additional INR 35 billion investment in May 2025 for on-highway tyres, rubber tracks, carbon black and power plant expansion. The board has further approved INR 20 billion in additional capex to support capacity expansion, infrastructure development, AI-enabled automation and sustainability initiatives.

As part of the OHT expansion strategy, BKT said ongoing debottlenecking and capacity enhancement initiatives would raise OHT tyre capacity to 425,000 metric tonnes per annum (MTPA). The company is also expanding its dedicated rubber tracks manufacturing facility while strengthening its mining tyre portfolio.

In the carbon black business, the company is scaling up production to improve raw material integration and energy efficiency. BKT said Phase 1 capacity has already been increased to 265,000 MTPA along with a 24 MW cogeneration power plant, taking total cogeneration capacity at Bhuj to 64 MW. Phase 2 expansion, which will raise carbon black capacity to 360,000 MTPA, is expected to become operational in Q1 FY27.

The company is simultaneously building its on-highway tyre business in India through a modular approach focused initially on premium passenger car radial tyres and commercial vehicle radial tyres. Commercial vehicle radial tyres were pilot launched in Q4 FY26, while passenger car radial tyres are scheduled for pilot launch in Q3 FY27.

For FY26, BKT reported standalone revenue of INR 106.56 billion, while net profit stood at INR 12.22 billion. OHT sales volumes rose 1 percent year-on-year to 317,356 MT.

The company said the expansion programme is expected to enhance profitability through stronger operational integration, scalable infrastructure and an expanded product portfolio, with blended EBITDA margins projected in the 23–25 per cent range after full commercialisation of the new capacities.

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Continental has unveiled plans to build a highly automated finished-goods warehouse in Mount Vernon, Illinois, representing an investment of roughly USD 76 million. The new facility, which will cover an area larger than six American football fields and hold approximately 500,000 passenger car tyres, aims to address growing demand across North America while improving service levels and customer support. Construction is scheduled to begin in the summer of 2026, with operations expected to launch the following year.

The Mount Vernon location already holds the distinction of being Continental’s largest tyre production facility in United States and serves as a linchpin for its supply network throughout the Americas. Tyre manufacturing has been a constant at this site for over 50 years, dating back to its 1974 opening; Continental took ownership in 1987. Today, the vast campus – measuring more than 320,000 square metres – produces tyres for passenger cars, light trucks and commercial vehicles, churning out roughly 11.4 million units annually while employing over 3,500 people.

Continental continues to advance digitalisation and automation across its global manufacturing operations, which include 19 tyre plants in 16 countries. The company is prioritising new technologies, alternative materials, environmentally friendly production methods and ongoing improvements in logistics efficiency.

Tansu Işık, CEO, Continental Tires Americas, said, “Our new highly automated finished-goods warehouse underscores our growth ambitions in North America. The new facility will enhance our ability to serve customers with greater speed and flexibility while strengthening our overall distribution network in the region.”

Nik Pearce, Plant Manager of Continental’s Mount Vernon tyre plant, said, “This investment is a strong signal for the future of our Mount Vernon plant. It enhances our capabilities, further modernises our operations and makes our plant logistics more efficient. At the same time, it strengthens our operations at local level and creates new development opportunities for our employees.”

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