Apollo Tyres recently opened its first two-wheeler tyre manufacturing unit in India to cater to growing demand for the premium two-wheeler bikes. In an interview, Neeraj Kanwar, Vice Chairman & MD, Apollo Tyres, spoke on the new plant and growth in the premium bike segment and the company’s readiness for the premium two-wheeler tyre market..

With the opening of its two-wheeler manufacturing facility, Apollo Tyres aims at having a “strong foothold” in the premium segment of two-wheeler tyres, which is the comparatively high-value and highly profitable segment, India.

With having a vision of to be a premier tyre company with a diversified and multinational presence, Apollo Tyres manufactures and supplies a wide range of tyres for trucks and buses, light trucks, passenger vehicles, off-highway vehicles and two-wheelers.

“We are known for offering technologically advanced products to our consumers in all the categories. Getting into the premium biking segment was a natural progression for us,” said Neeraj Kanwar, Vice Chairman & MD, Apollo Tyres. 

With the new facility, Apollo Tyres now plans to have a strong foothold in premium motorcycle tyre market in India. Despite being a late entrant, Apollo Tyre has already grabbed a 7% market share in the replacement market in the two-wheeler tyre space due to a best-in-class and high-technology product portfolio.

The new two-wheeler tyre manufacturing unit is located within Apollo Tyres’ Limda plant in Vadodara, Gujarat, which has an initial capacity to produce 30,000 motorcycle radials and 60,000 cross-ply motorcycle tyres per month.  With a modular layout of the facility, the capacity can be replicated easily, as the demand increases.

“We now have a global portfolio of high-end bias and steel radial tyres for two-wheelers, which will be produced at our highly advanced and futuristic facility in Vadodara, Gujarat,” added Kanwar.

Apollo Tyres, in 2016, entered the two-wheeler tyre business by launching India’s first zero-degree steel radial tyres, a global gold standard for motorcycle tyres, and now commands a double-digit market share in this segment. “Being a late entrant into the two-wheeler tyre space, we wanted to create an impact in the market. In under four years, we have built an entire range for Indian and European market, grown at a CAGR of 35%, catered to market with a new last-mile distributor model and built a grounds-up connect with the biking community through our multiple brand initiatives,” said Kanwar.

Apollo Tyres is looking at selling our two-wheeler tyres from the Vadodara facility to all market segments, including exports. “In fact, we already have shipped the first consignment from this facility for the European market,” added Kanwar.

Premium bike segment

The premium bike segment, which constitutes nearly 20% of the motorcycle market in India, is the fastest growing one. According to a TechSci research report, the Indian premium motorcycles market is projected to reach $ 161 million by 2023, on account of rising Y Generation population and per capita income, and availability of a wide array of premium motorcycle models and easy financing options. The report also added that increasing number of CKD and SKD units, the launch of newer and advanced premium motorcycle brands and models, rising popularity of superbike clubs and communities, and increasing biking culture are among the key factors expected to drive the country’s premium motorcycles market in the coming years.

“India also is the largest market for two-wheelers, and it still has headroom for further growth. In the current pandemic era as well, there is the demand coming in as people are moving away from shared and public transport and gradually moving to own a personal vehicle, including a two-wheeler, further driving the demand for tyres in this category,” said Kanwar.

Though many tyre companies are betting high on the premium tyre segment, commuting bikes will continue to dominate the market. According to Kanwar, the economy segment bikes still drive volumes for Apollo Tyres’ two-wheeler tyre business. Instead of looking at this segment as a commodity business, the company caters to the segment with multiple product offerings according to various markets in India. “We have seen emerging trends in this segment like the rapid rise of delivery and courier services and have built specialised offerings for this space as well,” said Kanwar.

Along with having a leading position in India, Apollo Tyres is also expanding its business in the challenging and advanced automotive markets in Europe and the Americas. Apart from having five manufacturing plants- Chennai, Perambra, Limda, Kalamassery and most recently, Chittoor- in India, the company has established two manufacturing plants outside of India – The Netherlands and Hungary.

Having global R&D centres in India and Europe give distinctive advantages to Apollo Tyres to caters to all segments. Both R&D teams use their collaborative experience to come up with technologically advanced products for the premium bikes. “Entering the two-wheeler segment in 2016, we used the global knowhow, to come out with zero-degree steel-belted radials in 2018, a global gold standard for motorcycle tyres,” said Kanwar.

 Apollo Tyres has used the concept of ‘design to delivery’ while setting up this two-wheeler tyre facility in Vadodara, Gujarat. Most of the equipment used are special purpose machines, which have been conceptualised in-house and converted to reality.

However, the competition in the two-wheeler tyre segment in India is very high, and few companies have dominated the segment. The segment is expected to be more crowded with new entrants. Apollo Tyres has set its focus on the premium segment of two-wheelers, which is 20% of the entire two-wheelers while supplying to the mass market segment. “We are looking at servicing this segment with our zero-degree steel belted radials and high-end bias tyres. Our strategy is to build the brand and create a pull for our products across categories. We have been actively engaging with several biking communities and enthusiastic and passionate riders,” explained Kanwar.

In FY 2020, in the two-wheeler segment, the company launched 17 new SKUs for the higher premium bikes and scooters and extended its steel radial portfolio with the launch of two new SKUs – Alpha S1 140/60 R17 and 130/70 R17. For its two-wheeler business, the company executed the Alpha sustenance campaign earlier in 2020 to make it one of the most viewed brands by the end of the campaign.

Talking on the recent imposition in Chinese tyres, Kanwar said, “We are definitely better placed than before.”

GRI, a leading manufacturer of speciality tyres, has appointed Dr Tharindu Atapattu as the next Chief Executive Officer (CEO) of the company.

Dr Atapattu brings with him more than two decades of outstanding expertise in value-driven growth, company turnarounds and financial strategy in Fortune 500 companies, major local businesses and global firms. He is in a unique position to guide GRI into its next stage of expansion because of his great financial sense and ability to put solid operational frameworks in place. In addition to his First-Class Honours Degree in Engineering, MBA in Finance and PhD in Marketing, he is a Certified Global Business Analyst (CGBA) and Certified Management Accountant (CMA). In addition, he holds certifications as an NLP Business Practitioner, Certified Director and Certified Leadership Coach. In the past, he has held positions as Director and CEO of Lanka Swisstek Pvt Ltd – India and Swisstek Aluminium Ltd. He received the esteemed Top 50 Global CEO Leadership Excellence Award in Colombo in 2024.

In his new role at GRI, Dr Atapattu will concentrate on enhancing financial resilience, attaining manufacturing excellence, streamlining the global supply chain, developing people and capabilities and using digital transformation to open up new possibilities. In order to optimise profits, optimise procedures and strengthen GRI's competitive advantage in international markets, his leadership will place a strong focus on data-driven insights.

Michelin India is doubling down on the country’s fast-growing premium tyre segment, a niche yet rapidly expanding market. The company, which has been manufacturing radial commercial tyres at its Chennai plant, is now investing over INR 5.64 billion in a brownfield expansion to produce passenger car radial tyres at the same facility.

Today, Michelin India is not just a manufacturing hub but also a critical part of the global Michelin ecosystem, housing the company’s world AI headquarters and a state-of-the-art R&D centre, growing from a modest operation with fewer than 100 employees to a total workforce of nearly 3,000.

In an exclusive interview with Tyre Trends, Shantanu Deshpande, Managing Director, Michelin India, touches upon the company’s strategic priorities, the evolving tyre industry and its ambitious plans for the premium and electric vehicle (EV) segments.

He also sheds light on Michelin’s sustainability initiatives and how the company is leveraging India’s growing infrastructure and consumer preferences to solidify its position as a market leader in the premium segment.  The premium proposition:

Catering to discerning consumers

When Michelin first entered the Indian market, it was a niche player with a limited presence. The company’s initial focus was on introducing radial tyres to a market dominated by bias tyres. Over the years, Michelin has not only expanded its manufacturing footprint but also cemented its position as a leader in the premium tyre commercial tyre segment. 

“We started with TBR tyres (Truck and Bus Radial) over a decade ago,” Deshpande recalls. “Back then, the industry was dominated by bias tyres. Today, radial tyres account for almost 70 to 80 percent of the market, and we’re now seeing a shift from tube-type to tubeless tyres. This transformation has been driven by infrastructure improvements and the rise of e-commerce, which demands faster, more efficient logistics.” 

Currently, tubeless tyres have a 5-10 percent market share, while tube tyres own the rest.

Deshpande highlights the dramatic changes in India’s road infrastructure as a key driver of this evolution. “When I was a sales executive, the Delhi-Mumbai corridor took eight days to traverse. By the end of this year, it will take just 24 hours. Truck speeds have increased from 25-30 km/h to 40-50 km/h, and soon, they’ll reach 60 km/h, comparable to Europe. These changes have created a demand for high-performance tyres that can handle heavy loads and long distances,” he explains.

The rise of e-commerce has further accelerated this demand. “Some fleets are running 25,000 kilometres per month,” Deshpande notes. “This is a significant distance for trucks, and it underscores the need for tyres that offer durability, fuel efficiency and safety.” 

Michelin’s focus on premium tyres has been a cornerstone of its strategy in India. Deshpande emphasises that the company’s value proposition lies in offering a lower total cost of ownership (TCO) for fleet operators, particularly in the TBR segment. 

“Fuel accounts for 60 percent of a truck operator’s costs,” he explains. “Michelin intends to work with like-minded fleet operators who understand the value proposition of TCO. We are changing their tube radial tyres to tubeless radial tyres. For instance, our X Multi Energy Z+ tyre, with the lowest rolling resistance in the country, can save up to 15 percent on fuel compared to traditional tubeless radial tyres. This is a game-changer for fleet operators who understand the importance of TCO.”

Cost per kilometre Vs total cost of ownership

Deshpande elaborates on Michelin’s approach to cost per kilometre (CPK) and total cost of ownership (TCO), which are critical metrics for fleet operators.

“Cost per kilometre is one way to simplify invoicing, but it’s not the complete picture,” he explains. “While CPK focuses on the life of the tyre, we believe in a broader approach – total cost of ownership. A Michelin tyre not only lasts longer but also saves fuel, which is a significant cost for fleet operators. It’s important to look at the overall savings, not just the tyre’s lifespan.”

Michelin offers innovative service models to fleet operators, including on-site maintenance and diagnostics. “We have models where technicians are stationed at fleet yards,” Deshpande says. “We provide free diagnostics to identify issues like under-inflated or misaligned tyres, which can significantly impact costs. We then offer maintenance services to ensure optimal performance, and this is a paid service – it’s not free. We work with fleets to show them the cost savings we can bring per-truck, per-month basis.”

The company also invests in equipment like tyre fitting and alignment machines at fleet yards. “We bear these costs into our service offerings,” Deshpande adds.

Premium passenger radial tyres: New target

In the passenger vehicle segment, Michelin is targeting the growing demand for premium and luxury cars. In September 2024, Michelin India entered the passenger car radial tyre market with the launch of an INR 5.64-billion brownfield project in Thervoy kandigai, near Chennai. “This investment is over and above the existing investment of INR 28.40 billion for the company in our factory,” adds Deshpande.

“We believe there is significant potential in the passenger segment for several reasons. Over the last three years, the vehicle landscape in India has significantly changed,” Deshpande says. “Today, most new SUVs and cars are being launched with bigger tyre sizes, such as 16-inch or 17-inch. This shift aligns perfectly with our focus on premium tyres.”

According to Deshpande, the shift towards premium products extends beyond automobiles. “There is a growing demand for premium products across all walks of life, not just automobiles. This includes two-wheelers, luxury bags and other high-end items. Consumers are willing to pay for quality,” adds Deshpande.

Deshpande points to the changing profile of Indian consumers as a key factor driving this trend. “The Indian consumer is evolving,” he says. “Ten years ago, a Mercedes owner was typically an industrialist or a Bollywood star. Today, young professionals in their 30s are driving BMWs and Mercedes. Last year, close to 50,000 cars priced above INR 50 lakh were sold in India, and we expect this number to double soon.” 

Improved road infrastructure has revolutionised leisure travel habits. “10 to 15 years ago, travelling from Mumbai to Delhi by car was uncommon. It’s possible to drive from Mumbai to Nagpur in eight hours today,” Deshpande said. “People now prefer driving long distances rather than flying, which has significantly changed how consumers view their cars.”

Michelin’s Chennai plant is strategically focused on producing tyres for this premium segment. “We’re manufacturing sizes 16 inches and above at our Chennai plant,” Deshpande says. “We’re not interested in smaller sizes. Our goal is to cater to the top 25-30 percent of consumers who value quality and are willing to pay for it.” 

The company’s retail distribution strategy is equally focused on maintaining a premium experience. “A Michelin customer, such as a BMW owner, expects nothing less than a premium experience,” Deshpande explains. “We’re not aiming for a vast network of dealers. Instead, we’re focusing on well-branded shops that offer a superior consumer experience.” 

The company plans to open its premium retail shops for passenger car tyres in the top 15 to 20 cities to cater to the replacement market.

The EV opportunity: Balancing performance and sustainability

As the automotive industry shifts towards electrification, Michelin is positioning itself as a leader in EV tyres, and Deshpande also acknowledges the unique challenges and opportunities this transition presents. 

“EV tyres require specific designs, such as low rolling resistance and larger diameters,” he explains. “But it’s not just about range. Load-carrying capacity, noise reduction and durability are equally important. Michelin has mastered the art of balancing these performance criteria.” 

Deshpande dispels the misconception that EV tyres are fundamentally different from those used in internal combustion engine (ICE) vehicles. “Some of our tyres are excellent for ICE vehicles but even better for EVs,” he says. “We don’t design tyres purely for range. Instead, we ensure they deliver the right balance of performance, safety and comfort.” 

Michelin’s approach to EV tyres is already yielding results. “The tyres we’ve designed for ICE vehicles are being adopted by EV manufacturers globally,” Deshpande reveals. “In India, as the EV market grows, we’ll leverage our global expertise to cater to this segment.” 

Sustainability at the core

Sustainability is a key pillar of Michelin’s strategy, both globally and in India. The company’s Chennai plant is a zero-discharge facility that recycles all its water through rainwater harvesting. By the end of this year, the plant will be powered entirely by renewable energy. 

Deshpande asserts,” Our Chennai plant is one of the most high-tech and green facilities in the Michelin world. It’s a benchmark for safety, modernity and environmental responsibility.” 

The tyres manufactured in Chennai are exported to North America, Europe, Africa and the Middle East.

Michelin’s commitment to sustainability extends beyond its manufacturing processes. The company also focuses on developing tyres that increase fuel efficiency and reduce emissions. “Our X Multi Energy tyre, for instance, has a rolling resistance of just 4.5 kg per tonne, compared to the industry average of 6.5-7 kg per tonne,” Deshpande says. “This translates to significant fuel savings and a lower carbon footprint.” 

Premium two-wheeler segment: Another growing opportunity

Michelin India continues its presence in the two-wheeler tyre segment through a manufacturing arrangement with STL (Spinmax tyres Pvt Ltd), via an offtake arrangement.

Despite current import restrictions, the company eyes opportunities in India’s evolving motorcycle market.

“The two-wheeler segment is undergoing significant transformation,” says the Managing Director of Michelin India. “With the increasing launch of high-powered bikes like Royal Enfield and other global brands, along with Indian manufacturers producing world-class bikes for export, this segment presents a great opportunity.”

The company sees a natural overlap between its target markets. “The profile of consumers buying high-powered bikes often overlaps with those buying premium cars,” Deshpande thinks. Michelin plans to focus on motorcycles and scooters of 250 cc and above, where the company believes its brand visibility and value proposition are strongest.

The strategy mirrors Michelin’s approach in the passenger vehicle segment. The company maintains local outsourced manufacturing of two-wheeler tyres while exploring future expansion opportunities.

The French tyre maker continues to evaluate opportunities in India’s growing premium two-wheeler market as domestic manufacturers increasingly target global markets with higher-end models.

Michelin India: A place for global R&D & AI Centre

In addition to Michelin India’s manufacturing capabilities, it has also established a Global Hub in Pune focusing on next-generation technologies such as AI, data engineering, digital services and R&D centre, which supports research efforts for the Michelin Group worldwide. 

Deshpande is also optimistic about the role of Indian R&D in Michelin’s global operations. “Our Pune centre is not just supporting India; it’s contributing to global markets,” he says. “The talent here is recognised for its innovation and expertise, not just cost arbitrage. At our Global Competency Center in the city, the company isn’t just optimising tyres but redefining how they’re designed, manufactured and used. This is a proud moment for us.” 

As Deshpande puts it, “Michelin is not just selling tyres; we’re selling safety, comfort and peace of mind. In a market as dynamic as India, that’s a value proposition that resonates.”

The global tyre industry is undergoing a significant transformation, driven by the need for materials that reduce environmental impact without compromising performance. In a world where sustainability is essential, close collaboration with suppliers is critical to addressing these challenges.

For Synthos, Europe’s largest producer of synthetic rubber, the path is clear: develop advanced solutions that support sustainable mobility, promote circularity and work closely with tyre customers and partners to advance environmentally responsible tyre production and accelerate the transition to a net-zero future.

Synthetic rubber innovation

Synthos operates three state-of-the-art manufacturing facilities in Germany, Poland and the Czech Republic, with a combined annual production capacity of 760,000 metric tonnes, producing a diverse portfolio of elastomers, including SSBR (SPRINTAN ), BR (SYNTECA) and ESBR (KER and BUNA), which are essential to the tyre industry and a wide range of other technical applications. Supported by commercial offices across the Americas and Asia, Synthos supplies advanced solutions to global markets.

Tyres account for over 90 percent of their energy consumption during the use phase, primarily through vehicle fuel or electricity usage. Improving energy efficiency is therefore critical to reducing their environmental impact. At the same time, tyre wear particles are a key challenge, with longer-lasting tyres and enhanced abrasion resistance essential to addressing microplastic generation. For electric vehicles (EVs), these challenges are further amplified by increased weight and instant torque, which place greater demands on tyre performance.

As the world’s largest producer of functionalised solution styrene-butadiene rubber (SSBR), Synthos is tackling these challenges head-on. Its next generation of multi-functionalised SSBRs, developed under the SPRINTAN brand, features optimised low glass transition temperatures (Tg) to deliver lower rolling resistance for improved energy efficiency, alongside excellent abrasion resistance and wet grip. A standout example is SPRINTAN 918S, which entered full commercial production in 2024. Developed with proprietary technology, this highly functionalised SSBR combines exceptional wet and dry grip with enhanced energy efficiency and wear resistance, all while maintaining processability during compound production. Designed for summer, winter and all-season tyres, SPRINTAN 918S is particularly effective for EVs, where durability and efficiency are paramount.

With additional low-Tg SSBR grades in development, Synthos remains at the forefront of sustainable, high-performance materials for the future of mobility.

Investing in a green future

While leading in supply, Synthos’ commitment to sustainability sets it apart. Recognising the environmental impact of its manufacturing processes and products, Synthos is dedicated to minimising this impact throughout its operations, implementing measures to minimise waste and ensuring the efficient use of resources.

Synthos was the first in the industry to offer its entire synthetic rubber portfolio as bio/circular-attributed materials under ISCC PLUS certification, now supplied through its PLUS range. The company also prioritises transparency and traceability, providing detailed data from its production processes to help customers make sustainability-focused decisions. Each synthetic rubber grade is accompanied by a cradle-to-gate Product Carbon Footprint (PCF), enabling precise evaluation of its environmental impact.

Aligned with its Sustainable Development Strategy, Synthos has pledged to operate all facilities with carbon-free energy by 2028, investing in low- and zero-carbon energy sources. By reducing the environmental impact of its operations, Synthos is laying the foundation for a greener, more sustainable future.

Building strong partnerships

Collaboration is at the heart of Synthos’ approach to advancing sustainability and innovation. By working closely with partners across the tyre lifecycle, the company is driving circular innovation and addressing key challenges within the industry.

Through its partnership with Tyre Recycling Solutions (TRS), Synthos promotes the use of TyreXol™ rubber powder, derived from end-of-life tyres, in synthetic rubber formulations. This collaboration supports sustainable manufacturing by keeping valuable materials in circulation and reducing waste. A memorandum of understanding (MoU) with Sumitomo Rubber Industries further strengthens this initiative, with both companies focusing on the development, testing and application of TyreXol™ technology as part of their shared commitment to the circular economy.

Synthos has also signed an MoU with Kumho Tire, a leading South Korean tyre manufacturer, to jointly develop sustainable raw materials for tyre production. This collaboration includes research into neodymium-butadiene rubber using bio-based butadiene, aiming to expand the use of environmentally friendly synthetic rubber in tyre manufacturing.

Upstream, Synthos has partnered with OMV, an Austrian multinational integrated oil, gas and petrochemicals company, to secure a long-term supply of sustainable butadiene produced from circular feedstocks, such as used cooking oil and pyrolysis oil derived from end-of-life tyres.

Beyond these partnerships, Synthos is actively involved in leading industry initiatives, including the Alliance for the Future of Tires (AZuR) and the Circular Rubber Platform, further reinforcing its connections within the industry.

Focused on the mobility of tomorrow

The challenges of sustainability cannot be solved in isolation. As demand from leading tyre manufacturers for sustainable synthetic rubber continues to grow, Synthos is aligning with stakeholders across the value chain to deliver advanced, high-performance materials tailored to its customers’ needs, whether ISCC PLUS-certified materials, bio-based rubber or customised products developed in collaboration with its partners.

Through its dedication to innovation, renewable resources and strong partnerships, Synthos Synthetic Rubber is shaping a future where performance and sustainability work together, ensuring the tyre industry evolves responsibly.

Groeneweg is the global Global Marketing Director Synthos

Japanese tyre major the Yokohama Rubber Co in joint-research with Dr. Bo Nils Johan Persson have successfully developed in December 2024, the world’s first theoretical model to predict the rubber wear-rates on uneven road surfaces and the size distribution of wear particles.

Dr Persson is a leading a leading expert in the study of rubber friction and contact, contact, friction, wear and lubrication, including rubber friction. He is associated with Peter Grunberg Institute (Germany) and Lanzhou Institute of Chemical Physics (China).

He also runs a company called Multiscale Consulting (Germany) that supports companies in the rubber industry and beyond in addressing various challenges.

What’s more Dr. Persson’s unique approach to contact mechanics and rubber friction have been documented in numerous peer-reviewed academic journals and verified by other scientists, proving its effectiveness in solving a wide range of problems.

The new research was selected as the most noteworthy item and featured as the cover story in the 21 February 2025 edition of ‘The Journal of Chemical Physics’ published by the American Institute of Physics.
Yokohama Rubber known for its extensive track record in rubber research and advanced technological development capabilities, entered into a contract with Multiscale Consulting to collaborate with Dr. Persson in studying friction and wear on rubber and road surfaces.

The partners successfully developed what they claim is the world’s first theoretical model for multiscale (ranging from nanometre to centimetre levels) rubber wear behaviour on uneven road surfaces, for which theorisation had been difficult in the past. Experiments measuring rubber wear behaviour when sliding in both dry and wet conditions at different contact pressures and sliding speeds showed that the theoretical model’s predictions of wear-rates (mass loss per unit of sliding distance) and size distribution of wear particles aligned closely with the experimental results, confirming that the model could be used for such predictions.

Going forward, Yokohama Rubber plans to continue conducting research with Dr. Persson and Multiscale Consulting in order to pursue the development of tyres with high-level wear resistance.

In addition, Yokohama will continue to focus on reducing tyre wear, which is a leading demand for EVs to have reduction in environmental issues.