Last year, Oxford Dictionaries declared that “Unprecedented” is the word of year that chosen by the famous English language experts to sum up the preceding 12 months. It’s been more than a year since the pandemic changed the way we live and work, and nothing feels more important than staying connected to our communities. Tyre industry is no exception.
As we all know, the automotive society is changing at rapid pace world-wide due to various factors such as new customer trends, growth of middle class and new mobility concepts. The performance requirements of tyres continue to rise ever higher, meaning that even further advancement in tyre technology as well as fighting with complex issues are now our new normal. The requirements of tyre performance parameters are much greater than past therefore now we work with “octagon,” instead of historically used “triangle.”
Today, we are talking about “Desired performance” instead of “Prioritised performance” which covers all required factors as well as sustainable green product concept. As we all know, many tyre manufacturers have announced their aggressive plans to have “carbon-neutral” products and aimed to adopt renewable materials and sustainable solutions.
As noted earlier, there are also additional challenges facing mobility and there are many new topics. In this article as TIC, we focused some of the hot topics to be involved by tyre companies. The below topics will force fundamental changes and our industry is going to be more complex. We need to understand those which would affect market dynamics, breakthrough developments and mobility revolutions.
We believe that a holistic approach is needed to see the future as well as new opportunities and treats. TIC-Tire Industry Consulting’s recommendations are given for some of the important areas, which should be involved by tyre manufacturers in order to continue their business.
Air-Free tyres
The airless concept tyre is one of the initiatives aimed towards many tyre manufacture’s long-term vision of the use of sustainable materials. Many of tyre manufacturers revealed their second or third generation air free technologies by featuring improved load-bearing capabilities, driving performance and environmental design. However, there are a lot of works to be made before air free tyres available for customers. Anyone looking for the future of tyre industry needs to involve Air Free tyre technology. Although it is very hard to estimate, we believe CAGR would be reached 3-4% within ten years globally.
Sustainable solutions
This is one of the most popular topics for automotive industry since many years by aiming CO2 emission reduction. The motivations are: increasing pressure from legislation to move to zero CO2, EV sales booming in many countries and consumers are increasingly seeking to buy from environmentally responsible companies. Main players have announced very challenging targets to use all-sustainable materials by 2030 and 2050. Tyre industry has to follow this path and needs to do fundamental changes regarding all processes such as R&D, supply chain and others. We believe that tyre industry should implement multiple technological innovations for sustainable solutions by working with their suppliers. In order to keep the competition, tyre manufacturers should: have a Science Based Target (SBT) for sustainability, engage with suppliers for joint activities and improve R&D activities regarding new materials, new designs and higher the usage of recycled materials.
EV tyres
Global automotive sector is responsible for 15% of global GHG emission and Paris agreement targeted to have “zero” GHG emission by 2050 to limit global warming. This is a very challenging target ever seen that committed by all countries. Private sector is co-responsible for implementation and rapid fleet electrification is one of the on-going solution items. OEMs have set the pace for CO2 reduction and tyre manufacturers should have the EV tyre that meets “desired performance” as a sustainable green product.
The best example would be Germany , that aims to have 14M electric cars in 2030 by having almost 30% share of total car and electric passenger car new sales would reach to 75-80% of total cars sale in 2030. Those figures show how big opportunity is exist for EV tyre manufacturers for OE and replacement markets. In that respect, we should continue to improve New Product Development (NPD) process even harder by expanding R&D efforts.
Artificial Intelligence
One of the important breakthrough innovations is AI and now widely use in all industries. We have seen many new applications by using AI in tyre industry too. Some of the areas would be sensor adoptions, prediction of compound physical properties, data mining in production processes and performance predictions during service time such a wear life and others. As TIC, we see AI as a “white space” for tyre manufactures that needs special skills as well as knowledge to adapt AI to existing systems.
Dynamic Testing
This has been performed by many tyre manufacturers using different test methodologies such as component level, Hil (Hardware-in-the-Loop), ViL (Vehicle-in-the-Loop) test during the development and test & verification states of the product. In addition to those currently available test technologies, there are new developments in testing, such as dynamic driving simulators, in other words DiL (Driver-in-the-Loop). This technology enables tyre manufacturer to test and verify their next-generation tyre designs in virtual environment using the vehicle digital twin, which replicates the actual vehicle including vehicle driving dynamics, with real driver interaction. The DiL will improve the development process and create new opportunities for tyre manufacturers as preferred one. TIC believes in “Speed to market with right solutions and innovation,” and ready to support you. Design & development process duration is getting more and more crucial and all manufacturers are trying to reduce it by using modern simulation and testing technics. We recommend adopting Virtual technology in order to provide the best service to your customers.
As a conclusion, tyre industry is facing a lot of challenges and having very dynamic competition, in that respect the tyre technology and tyre knowledge will be extremely important to compete in the future, more than at any time in the past.
TIC Subject Matter Experts (SMEs) have vast hands-on experiences for above topics and ready to support your activities. We provide specialised technical solutions for challenges and TIC guarantees a high standard of professional-ethical principles that we have kept and developed for years. (TT)
MRF Posts 15% Rise In Third-Quarter Income; Profit More Than Doubles
- By TT News
- February 06, 2026
MRF Limited reported a 15 per cent rise in consolidated total income for the third quarter ended 31 December 2025, supported by stronger demand across original equipment and replacement segments.
Total income rose to INR 81.75bn, compared with INR 70.99bn in the corresponding quarter a year earlier. Consolidated profit before tax increased to INR 9.17bn, up from INR 4.24bn a year earlier, after providing for an exceptional item of INR 0.77bn related to the new Labour Code.
Provision for tax during the quarter stood at INR 2.25bn. Consolidated net profit more than doubled to INR 6.92bn, compared with INR 3.15bn in the corresponding quarter of the previous year.
The company said both original equipment and replacement sales were robust during the quarter, aided by higher demand following the reduction in goods and services tax rates. Rural demand also improved, supported by good and widespread monsoons.
MRF said demand momentum from lower GST rates was expected to continue into the fourth quarter. Original equipment manufacturers were also expected to raise production levels, driven by higher anticipated sales and lower channel inventories.
The company said increased government spending on infrastructure, announced in the Union Budget, was positive for commercial vehicles and, in turn, the tyre industry. It also noted that trade agreements under discussion with several countries, including the European Union and the United States, could create export opportunities in the future.
The board of directors declared a second interim dividend of INR 3 per share, representing 30 per cent on the face value of INR 10, for the financial year ending 31 March 2026.
TVS Srichakra To Invest INR 21bn For Capacity Expansion For Uttarakhand Plant
- By TT News
- February 06, 2026
TVS Srichakra Limited has approved a capital investment of up to INR 21 billion to expand manufacturing capacity at its Unit 2 facility in Rudrapur, Uttarakhand.
The decision was taken by the board of directors at a meeting held on recently, the company said.
The investment will be directed towards capacity addition at the existing plant, which currently has an annual production capacity of about 9.2 million to 9.5 million tyres. Capacity utilisation at the unit stands at roughly 80–85 per cent.
The proposed expansion is expected to raise capacity by about 40–45 per cent and is scheduled to be completed in the first half of the 2027–28 financial year.
The company said the investment would be funded through a combination of internal accruals and debt. The expansion is intended to meet growing demand for the company’s two-wheeler and three-wheeler tyres.
TVS Srichakra disclosed the development under Regulation 30 of the Securities and Exchange Board of India’s listing regulations.
Pirelli Board Rejects Fragmentation, Upholds Integrated Strategy For Cyber Tyre
- By TT News
- February 06, 2026
At a meeting of the Pirelli Board of Directors, the management presented an analysis of the evolving automotive competitive landscape. This environment is now defined by increasingly integrated and connected systems, such as software-defined vehicles and autonomous driving, which have transformed the tyre into a sophisticated, data-driven component. In this context, Pirelli’s pioneering Cyber Tyre technology – a hardware and software system that communicates in real time with both vehicles and road infrastructure – was underscored as a critical strategic asset. Its validity is confirmed by adoption from major prestige car manufacturers and relative agreements with the Apulia Region, Movyon and Anas for smart road services.
Following this assessment, CEO Andrea Casaluci presented a clear position, asserting that all Cyber Tyre activities must continue to be developed in a fully integrated manner with the rest of the Pirelli Group, both functionally and organisationally. He emphasised that management must align completely with the Group’s strategic and industrial approach, expressly rejecting any project that could lead to even partial compartmentalisation, separation or segregation of this business unit. The Board voted on this management consideration, resulting in nine votes in favour and five against. Directors Chen Aihua, Zhang Haitao, Chen Qian, Fan Xiaohua and Tang Grace cast the dissenting votes.
The management further detailed the substantial risks of fragmenting the Cyber Tyre operations, arguing such a move would be unworkable. It would critically undermine the integrated business model that relies on constant interplay between technology, innovation, production and marketing. Isolating the Cyber Tyre business would involve transferring related patents, thereby stripping Pirelli of free access to its own strategic know-how and contradicting core principles of the company Bylaws. This segregation would weaken technological development, erode Pirelli’s competitive edge and innovative leadership and reduce synergies while increasing costs through duplicated structures. Ultimately, it would trigger significant value destruction, impair financial solidity and still fail to address the limitations imposed by relevant US legislation.
Giti Tire Earns First ISCC PLUS Certification For Anhui And Fujian Plant
- By TT News
- February 06, 2026
Giti Tire has achieved International Sustainability and Carbon Certification PLUS (ISCC PLUS) accreditation for its Anhui and Fujian Province plant in China, a major production site for its passenger, light truck and heavy-duty tyres destined for the European market. This globally recognised standard verifies sustainable practices across raw material sourcing, production and supply chain management. It mandates certified sustainable feedstocks, verified reductions in greenhouse gas emissions, robust waste and circularity systems and strict traceability, all while meeting social sustainability criteria.
This certification strengthens Giti Tire's capacity to develop tyres carrying the ISCC PLUS label. The milestone aligns with the ambitious goals detailed in the company’s 2024 Sustainability Report, which includes targeting net-zero for its global Scope 1 and 2 emissions by 2050. To support these objectives, Giti is making significant investments in renewable energy and sustainable manufacturing processes. A key initiative is a new state-of-the-art carbon neutral production line at its Anhui plant, scheduled to commence operations in 2026, complementing broader efforts in innovative tire technologies aimed at improving fuel efficiency and lowering carbon output.
Dr Pang, Chief Sustainability Officer, Giti Tire, said, “ISCC PLUS accreditation is a landmark moment in our sustainability journey, verifying that key raw materials come from responsible and fully traceable supply chains as well as confirming our commitment to people and the planet. This recognition places us among the industry’s premium manufacturers, an achievement that reflects our rising leadership in the global tyre sector.”
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