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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CEAT reported a 26 percent year-on-year increase in consolidated revenue to INR 47.62 billion in the second quarter of the 2026-27 financial year, while net profit stood at INR 1.12 billion as higher raw material costs continued to weigh on the tyre maker.

The company’s consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) margin was 9.5 percent, according to its unaudited results for the quarter ended 30 September.

Arnab Banerjee, Managing Director and Chief Executive, said revenue growth was supported by premium segments across business units. He added that the conflict in West Asia had kept raw material costs high, prompting the company to tighten cost controls.

CEAT expects to deliver double-digit revenue growth in the second half of the financial year, alongside further price increases, Banerjee said.

On a standalone basis, revenue rose 23 percent year on year to INR 45.48 billion. EBITDA margin was 10.14 percent, while net profit reached INR 1.64 billion.

Kumar Subbiah, Chief Financial Officer, said commodity costs were expected to remain elevated in the third quarter. The company would continue to pursue measured price increases and improve its product mix to manage cost pressures.

Subbiah said debt increased during the quarter, largely because of capital expenditure of close to INR 4.9 billion to expand capacity in areas with high utilisation, as well as dividend payments.

He added that CEAT would maintain financial discipline while investing to meet demand and support profitable growth.

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Michelin has strengthened its retail presence in India by launching two Michelin Tyres & Services outlets in Delhi, located in Dwarka and Karol Bagh. The openings make Michelin's premium tyre range, including the Made-in-India Primacy 5, accessible to customers in west and central Delhi, alongside professional fitment and tyre care. The Dwarka facility was inaugurated by Benjamin Coesnon, Marketing Director India.

The Dwarka outlet, operated with Excellent Tyres, covers 1,500 sft and caters to one of Delhi's largest planned residential sub-cities and its expanding south-west corridor. Excellent Tyres, established in 1994, brings over 30 years of experience in the capital's tyre trade. Meanwhile, the Karol Bagh store, run with Rana Tyres, spans 1,000 sft in a prominent automotive trade hub. Founded in 1977 and now led by its third generation, Rana Tyres contributes nearly five decades of technical knowledge and a loyal clientele.

The expansion reflects Michelin's sustained commitment to India. Its distribution network now exceeds 800 points of sale, while over INR 28 billion has been invested in the Chennai manufacturing plant. A further INR 6.86 billion went into a passenger car tyre line that now produces the Primacy 5 for Indian buyers. The new stores aim to deliver safer, more durable and higher-performing mobility.

Shantanu Deshpande, Managing Director, Michelin India, said, " Delhi is one of the largest premium car markets in the country. Expanding our presence in Delhi will provide accessibility to today's customers and serve the next wave of premium car owners. With the Made-in-India Primacy 5 now available at these stores, customers in the capital can get Michelin's globally benchmarked safety and longevity, backed by expert service from trusted partners. India remains a key growth market for Michelin, and Delhi is central to how we continue to build our presence."

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Pirelli has completed the renewal of its winter range with the Scorpion Winter 3, a tyre developed for SUVs in cold-weather conditions. That segment now accounts for more than half the global market and brings distinctive traits, notably greater weight and a higher centre of gravity, which demand dedicated internal structures and tread patterns.

The result is a tyre balancing performance across the many conditions of winter, from snow and wet roads to dry asphalt. It overcomes a traditional winter tyre compromise, giving SUV drivers consistent strength even in demanding situations, a claim already supported by a first independent test that ranked it best among its competitors. At launch, every size carries an A wet-grip rating on the EU tyre label, with noise between classes A and B. For the growing electric and plug-in hybrid portion of this segment, Pirelli also offers Elect technology, engineered specifically for those powertrains.

Development began with how tyres behave under heavy loads. The contact patch was redesigned to optimise pressure peaks, critical for mileage and even wear on heavy vehicles. This produced the generation's first major innovation: as the tread wears, the active edges within the contact patch, and therefore snow and wet grip, stay consistent over time. A dedicated carcass and tread design were likewise engineered for high vehicle weights.

The tread geometry adopts several Cinturato Winter 3 solutions, that tyre having recently won a test by the independent German association ADAC. These include a zigzag central groove for water evacuation and lateral snow grip, patented Snow Keeper Teeth that retain snow in the grooves to exploit snow-on-snow contact, and a high void ratio that aids snow and wet performance while countering aquaplaning. SUV-specific additions include stiffer tread blocks for handling and wear resistance under load, plus calibrated sipe density to preserve dry-road behaviour.

The compound draws on P Zero Winter 2 experience, using specific polymers such as Dual-Core Polymer, whose dual mechanism improves grip across conditions, while plasticisers broaden the operating temperature range. Engineers at Bicocca made extensive use of advanced Virtual Development techniques, simulating variables for precise results while cutting development time and prototypes, and driving simulators from static to dynamic helped target dry handling and enjoyment. The Pirelli Sottozero Center in Swedish Lapland enabled year-round snow and ice testing, partly indoors.

Launching in 30 sizes from 18 to 22 inches, the tyre offers Elect technology, which can raise electric and plug-in hybrid range by up to 10 percent, the Pirelli Noise Cancelling System that reduces perceived cabin noise via internal sound-absorbing material and Seal Inside for pressure retention after external punctures. It joins the Scorpion family begun in 1986 for high-riding vehicles and first fitted to the Lamborghini LM002, now spanning summer, winter and all-season road and off-road products with a strong original equipment focus. It adds to more than 1,200 homologations, including bespoke work for Aston Martin, Porsche, Lamborghini, Lotus, Audi, BMW, JLR and NIO. With winter tyre or snow chain rules starting 15 November, it completes a Winter range fully renewed over two years, alongside P Zero Winter 2 and Cinturato Winter 3.

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Tyres Europe has joined 44 European organisations in backing a joint statement spearheaded by European Metals, which urges EU Member States to endorse a more rapid and robust application of the bloc’s trade defence arsenal. The statement advocates for extra personnel within DG TRADE’s trade defence units and greater reliance on existing instruments while pressing the Commission to introduce a fresh policy toolkit targeting state-driven market distortions.

For the tyre industry, these concerns carry direct consequences. European tyre production remains capital-intensive, encompassing over 70 plants, including retreading operations, alongside roughly 20 research and development centres. Of the 398 million tyres newly fitted across the EU in 2024, approximately 40 percent originated beyond the Union’s borders. In recent tyre proceedings, trade patterns evolved more swiftly than the EU could respond, both prior to and following the imposition of measures.

On 5 October, Tyres Europe published its position paper, ‘Towards a more effective EU Trade Defence Policy’, outlining its recommendations. Mirroring the joint statement, the paper requests additional resources for DG TRADE and advocates launching work on a new instrument designed to tackle systemic distortions.

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