Hyderabad-based manufacturer targets 2 million monthly units within five years

In recent years, Hyderabad-based ARL Tyres has proven to be a versatile and innovative player with ambitious strategic goals. From providing specialised rubber items to the Indian military to creating innovative solutions for the emerging electric vehicle segment, ARL Tyres has shown remarkable resilience since its inception as a family enterprise in 1983.

With production levels now crossing 150,000 units per month and ambitious goals to reach two million units per month in five years, ARL is placing itself at the cusp of conventional industrial manufacturing and future mobility solutions. Its recent appearance at the Ride Asia EV Expo showcased the company’s wide range of products and its dedication to supporting India’s developing transportation infrastructure with niche products such as Smart Tyres and terrain-specific Mud Master range.

Hyderabad-based ARL Tyres, a division of Agarwal Rubber Limited, recently showcased its products, including tyres and tubes, at the Ride Asia EV Expo held at Bharat Mandapam this year. The company has established itself as a trusted partner for the Indian Army and Indian Air Force. It offers a comprehensive range of products, including tyres for two-wheelers, three-wheelers, and Light Commercial Vehicles (LCVs). It is also known for manufacturing Smart Tyres.

Growth Plans

The types of tyres being produced at this company include those for ultra-light trucks, two-wheelers, forklifts, tractors and light trucks. The company manufactures approximately 12,000 tyres daily at its production facility, selling across different areas of the country due to a 400-strong network of exclusive dealers.

According to Gautam Ghosh, Head-West Zone at ARL Tyres, “We are very optimistic about tyre sales in 2025 as there is tremendous potential in the EV sector. So far, in 2025, we have been averaging close to 150,000 units per month. Expect us to touch 0.2 to 0.25 million units a month by the end of this year.”

Continuing the expansion plan, the company intends to touch at least two million monthly units in five years. This growth is supported by its extensive network of exclusive dealers distributed across various regions of India.

Technical Expertise and Manufacturing Capabilities

In 2000, ARL Tyres gathered in-depth knowledge about all the major tyre technologies, manufacturing processes and industry standards. Apart from tyres, this ISO 9001:2015-certified company is also known for manufacturing high-quality flaps, envelopes, curing bags, bladders and butyl tubes.

Today, the company boasts an ultra-modern tube manufacturing unit that produces roughly 50,000 high-grade butyl rubber automotive tubes. While the range begins with two-wheeler sizes, it also extends to the aviation and OTR (Off-The-Road) sectors

Defence Sector Connection

Since 1996, ARL’s technical expertise in rubber has enabled it to supply tubes to the Indian defence sector. The durability and performance of its products have made ARL a preferred OEM supplier for the Indian Air Force, Indian Army, BEML (Bharat Earth Movers Limited), and HAL (Hindustan Aeronautics Limited).

Products for E3W Segment

For the electric three-wheeler market, which includes auto-rickshaws (passenger and commercial) and e-rickshaws, ARL offers both tube-type and tubeless tyres in sizes 4.00-12 and 4.50-12. The company markets two brands for this vehicle category: the Savera and the Xtreme.

According to the company, individuals should choose the Savera for its performance, safety, and durability on urban and semi-urban roads. Its non-skid Depth (NSD) ranges from 5.5 mm to 6.5 mm, which gives it good grip and safety. It would be useful as a passenger and cargo tyre.

On the other hand, ARL Xtreme is a tube-type tyre that optimises long-lasting performance, grip and safety on various roads. It differs from the Savera in terms of design and safety. Unlike the Savera, an NSD of 9mm is available here. Engineers at ARL have created a stylish design for the Xtreme that balances aesthetics and functionality with advanced technology.

Global Reach and Partnerships

Beyond the domestic market, ARL exports its products to more than 60 countries worldwide. Over the years, ARL Tyres has forged a few partnerships with top brands and continues to do so. For example, the company partnered with Chandu Champion, cheered India at the Paris Olympics through its ‘Jeet ki Aur’ campaign, and sponsored RCB during IPL 2025.

Innovative Offerings

Among its unique propositions, ARL offers OEM test drives with new tyres at specific locations, allowing auto manufacturers to fine-tune vehicle designs according to tyres and provide targeted inputs. It also sells Smart Tyres with scientific tread designs for efficient movement. The cross sipes on these tyres differ greatly from regular tyres and help grip wet and muddy surfaces. Instead of relying on vehicle technologies, these tyres are themselves available with real-time monitoring capabilities.

Company History and Client Base

ARL was founded as a family business in 1983 and became a tyre manufacturing company. Mobility companies such as Maa Luxmi India and Ferranza Electric Vehicle Private Limited, which were present at the Ride Asia Expo EV, are clients of ARL, as are the OEM manufacturers Omaha, Arel and Yakuza. While ARL’s trials for the Thukral Electric Bike have already commenced, the dispatches have not yet begun.

 

JK Tyre & Industries is aiming for double-digit revenue growth in FY2026, outpacing its forecast for single-digit expansion across the broader tyre industry. Managing Director Anshuman Singhania outlined the company’s ambitions during a post-earnings media call, underscoring confidence in demand recovery and strategic market positioning.

Q1 Performance Overview

For the first quarter of FY2026, JK Tyre reported revenue of INR 38.91 billion, with EBITDA at INR 4.24 billion, translating to a margin of 10 percent. Net profit stood at ₹1.55 billion — up 51 percent compared with the previous quarter, but down 21 percent YoY.

Singhania attributed the annual decline to muted original equipment (OE) demand, particularly in truck and bus radial (TBR) volumes, alongside higher raw material costs compared to the same period last year. He also highlighted an adverse impact from the company’s Tornel business in Mexico, which faced uncertainty due to tariffs on exports from Mexico to the United States, dampening volumes.

Resilience in Domestic and Export Markets

Dr Raghupati Singhania, Chairman and Managing Director, JK Tyre & Industries, said, “The growth momentum in domestic markets remained robust in Q1, with JK Tyre clocking a sales growth of 11 percent YoY, as contributed by a steady demand for our products in both replacement as well as OE segments, underscoring JK Tyre’s continued focus on core growth drivers and strengthening market presence.”

“Despite a challenging and uncertain macro-economic environment, exports of passenger car tyres witnessed a strong traction both on QoQ and YoY basis, signifying pull for our products and enhanced brand perception in the global markets,” said Dr Singhania.

Operational efficiencies and strategic pricing supported performance, even as natural rubber prices remained elevated. Subsidiaries Cavendish (India) and Tornel (Mexico) continued to contribute significantly to the group’s consolidated financials.

Operational efficiencies and strategic pricing supported performance, even as natural rubber prices remained elevated. Subsidiaries Cavendish (India) and Tornel (Mexico) continued to contribute significantly to the group’s consolidated financials.

Regarding trade tensions between India and the US, Anshuman Singhania noted that exports from India to the US account for only around 3 percent of JK Tyre’s revenue and could be redirected to markets such as Mexico, Latin America, Brazil and the UAE if required. With zero tariffs in Mexico, JK Tyre can utilise its production base there to meet demand for both passenger and truck radials. The EU and UK, where JK Tyre holds a strong position in the TBR segment, also remain tariff-free.

Capacity expansion

The company’s INR 14 billion capital expenditure plan is progressing on schedule, covering passenger car radial (PCR), TBR and all-steel truck radial projects. For the year, investment is expected to total INR 9-10 billion, aimed at boosting production capacity by 30-40 percent.

A key driver for future profitability is the shift towards premium products. The share of 16-inch and above passenger car tyres in JK Tyre’s portfolio has grown from 18 percent in FY2020 to 25 percent in FY2025, with a target of 40-45 percent over the next two to three years. This change is being fuelled by rising SUV sales, larger rim sizes in entry-level cars and strong export demand.

The company has also developed a complete range of tyres for electric vehicles, spanning commercial truck radials, bus tyres, passenger radials and two/three-wheeler tyres  Major OEMs such as Ashok Leyland’s Switch Mobility and Tata Motors are sourcing these products, including for last-mile connectivity vehicles and newly launched EV buses.

Market Outlook

The replacement market has been a bright spot, with passenger radial volumes up 32 percent year-on-year and truck radial volumes growing in the high single digits. JK Tyre expects demand to strengthen in the second half of FY2026, supported by infrastructure development, a favourable monsoon, potential interest rate cuts, and improved consumer liquidity.

Anshuman Singhania stressed that the worst of raw material price pressures appear to be over, paving the way for margin improvement as the product mix shifts and capacity utilisation rises. With the small car segment’s gradual decline offset by growth in premium categories, JK Tyre remains confident in sustaining momentum.

“Overall, India is poised for growth,” Singhania concluded. “We see positives across the board — from infrastructure push to evolving consumer preferences — and we are well-positioned to capitalise on these trends.”

Yokohama Rubber has begun supplying its ADVAN V61 tyres as original equipment for BYD’s new SEALION 6 DM-i SUV, marking the Japanese manufacturer’s first OE partnership with the Chinese carmaker.

The SEALION 6 DM-i, a plug-in hybrid SUV launched by BYD Company Ltd. this July, is being factory-fitted with 235/50R19 103V size ADVAN V61 tyres. The announcement comes as Yokohama seeks to grow its footprint in China’s fast-evolving electric and hybrid vehicle market.

The ADVAN V61 is part of Yokohama’s global flagship ADVAN range and is positioned as a premium SUV tyre. The company said the tyre “offers ADVAN’s hallmark premium-grade driving performance, along with a high-level balance of fuel and energy efficiency, handling stability, and quietness, achieving both comfortable city driving and long-distance touring for heavyweight SUVs.”

The SEALION 6 DM-i combines a 1.5-litre naturally aspirated petrol engine producing up to 74kW with an electric motor generating 160kW. Buyers can choose between 18.3 kWh and 26.6 kWh blade battery options, offering electric driving ranges of 93km and 130km, respectively. All models come equipped with advanced driver assistance systems as standard, and the exterior design draws inspiration from the concept of “ocean aesthetics.”

Sumitomo Rubber Industries Ltd said its subsidiary Dunlop Tyre Japan Ltd has completed a Japan Fair Trade Commission investigation into automotive all-season tyre sales after the regulator approved a commitment plan submitted by the unit.

The probe, which examined the subsidiary’s sales practices, concluded without the commission identifying any violation of Japan’s Antimonopoly Act, Sumitomo Rubber said in a statement.

Under Japan’s commitment procedures, companies can submit plans to address potential competition concerns without admitting wrongdoing, allowing them to resolve investigations while avoiding formal sanctions.

"We deeply apologise for the great trouble and anxiety that we have caused to all concerned, including our clients and business partners,” the tyre maker said.

Belgian steel wire maker Bekaert reported resilient first-half 2025 earnings as strong cash generation and cost control offset softer sales, but warned that tariffs and currency pressures are weighing on demand.

The company posted consolidated sales of €1.9 billion, down 5.2 percent year-on-year, with volumes declining 2.6 percent and price/mix effects stripping out a further 2.2 percent. Underlying EBIT slipped 16.2 percent to €171 million, delivering a margin of 8.8 percent compared with 9.9 percent a year earlier.

Free cash flow surged to €123 million from €43 million in the prior-year period, driven by a €135 million reduction in working capital and €21 million in cost savings as the company continued to streamline operations and rein in capex. Net debt fell to €327 million from €399 million despite a continuing €200 million share buyback programme, €74 million of which has been completed.

“We have continued to focus on what we can control best – cash flow and costs - and have significantly reduced overheads and working capital in H1 2025,” chief executive Yves Kerstens said. “Equally, I am very pleased with the hard work of our teams fighting for volumes in the current challenging markets.”

He added: “We are also taking further steps to make our business units more autonomous and agile. Therefore, I am very confident that we will come out of the current business environment stronger and more cost competitive than ever before.”

Bekaert said volumes were particularly strong in its Steel Wire Solutions and Rubber Reinforcement divisions in the United States and China, while European and Latin American demand lagged. Its Brazilian joint ventures delivered €24 million in net profit share, up from €20 million a year ago.

However, the group cautioned that growing trade tensions – including a rise in US steel tariffs from 25 percent to 50 percent – and the weakening of the US dollar and Chinese yuan against the euro were eroding pricing power and softening orders.

“Following a period of resilience in Q2, the tariff uncertainty and weakening economic outlook has started to have an impact on demand,” Bekaert said.

The company now expects slightly lower full-year 2025 sales on a like-for-like basis, with an underlying EBIT margin of between 8.0 percent and 8.5 percent, down from 8.8 percent in the first half.