For Continental Tires India, the passenger vehicle market in India is entering a phase where scale and structure are finally aligning with its longstanding premium ambitions. Passenger vehicle sales reached a record 4.3 million units in 2024, expanding by 4–5 percent year on year, but it is the composition of that growth – rather than the headline volume – that is reshaping the company’s strategy. Utility vehicles now account for approximately 58 percent of total passenger vehicle sales, up sharply from about 51 percent the previous year, cementing SUVs and crossovers as the dominant force in the market.

This structural shift has direct consequences for tyre manufacturers operating at the upper end of the value spectrum. Larger vehicles bring higher kerb weights, bigger wheel diameters and greater expectations around refinement, safety and performance. For Continental, the change represents not merely an increase in addressable demand but a decisive move towards tyre categories where technology differentiation and pricing discipline can coexist.

Samir Gupta, Managing Director of Continental Tires India, calls this phase a turning point, not a temporary high. He says the surge in utility vehicles – driven by electrification and more premium cars – fundamentally changes the economics of the passenger tyre market in India.

“Let me clarify one thing first. The utility vehicle segment is no longer small. Last year, around 60 percent of passenger vehicles sold in India were utility vehicles, and including first-time buyers upgrading within this segment, the share goes beyond 65 percent,” Gupta says.

Industry data broadly supports this assessment. SUVs alone contributed close to three-fifths of all passenger vehicle sales in 2024, with compact utility vehicles accounting for a significant share of incremental volumes. The overall passenger vehicle market, at around 4.3 million units, has thus become structurally skewed towards larger formats – an inflection with long-term implications for tyre sizing, load ratings and product mix.

This shift shows in replacement demand. As vehicle footprints grow, rim diameters are increasing. “The market is clearly moving from smaller to bigger rim sizes. Demand for 17-inch and above tyres is rising sharply,” Gupta says. While these tyres are still a minority, their growth far outpaces the overall passenger tyre market.

Electrification is accelerating the shift. A substantial proportion of electric passenger vehicles sold in India today are SUVs, and Continental expects EVs to account for more than 50 percent of the passenger vehicle segment within five years. For tyre manufacturers, this creates new technical requirements – higher torque tolerance, lower rolling resistance and stringent noise control. “That creates a significant opportunity for us because our strengths lie in premium, high-performance tyres,” Gupta says.

Despite these favourable structural trends, premium tyres have historically struggled to gain traction in India. For much of the past decade, the market remained intensely price-sensitive, with tyres treated largely as commoditised replacement items. Continental’s response, Gupta explains, has been consistent rather than tactical pricing. “Right from the beginning, we have focused on fair pricing. The idea is simple – if we can clearly differentiate on performance and consistently deliver on those promises, price recovery will follow,” he explains.

The broader environment is now becoming more supportive. As vehicle prices rise and consumers migrate towards larger, more sophisticated vehicles, willingness to spend on tyres that enhance safety, comfort and driving confidence is increasing. This trend is also evident at the top end of the market. Premium and luxury passenger vehicle sales reached approximately 51,500 units in 2024, up around 6 percent year on year and crossing the 50,000-unit threshold for the first time – a symbolic marker of premium consumption in India.

Gupta sees premiumisation extending beyond luxury vehicles. “Earlier, India was extremely price-sensitive, but that is changing in higher segments. Consumers are upgrading vehicles and are more willing to invest in tyres that enhance safety, comfort and confidence,” he says.

The intensification of competition, with global premium tyre brands expanding or re-entering India, is viewed as a positive development. “Competition is always good,” Gupta says. “It gives you room to grow and improve.” More importantly, he believes it will help reframe the market. “More premium players will help move the market away from being purely cost-driven to being value-driven,” he adds.

Replacement market dynamics reinforce this view. Of the roughly 32–33 million passenger tyres replaced annually in India, tyres sized 17 inches and above account for about 12–13 percent. While the overall replacement market grows at 5–6 percent per year, this high-diameter segment is expanding at over 20 percent annually, closely tracking the shift in new vehicle sales.

This sharper focus on passenger tyres also explains Continental’s decision to exit the truck and bus radial segment in India. Gupta stresses that the decision was strategic rather than operational. Continental entered the TBR market in 2014, invested significantly and received strong feedback on product performance.

However, the economics proved limiting. Gupta says, “TBR in India is largely a B2B, fit-for-purpose market. Even if you have the best tyre, willingness to pay remains limited because fleet operators are under constant margin pressure.” Although commercial tyres offer higher absolute margins per unit, they consume substantially more raw material. “One commercial tyre uses six to eight times the raw material of a car tyre. Percentage margins are actually higher in passenger tyres,” Gupta explains.

After reviewing its portfolio, Continental chose focus over breadth. Exiting TBR allows the company to concentrate capital, technology and management attention on passenger and light truck tyres, where differentiation is more readily monetised. Gupta rejects the idea that a narrower portfolio weakens the company’s position. Commercial and passenger tyre customers, he argues, are fundamentally different – one driven by procurement economics, the other by consumer perception and emotion.

Indian consumers, Gupta believes, are becoming more tyre-aware. “Premiumisation is happening across the vehicle industry, not just in tyres. As consumers move to larger and more premium cars, their expectations also rise,” he says. Where tyres were once treated as an afterthought, buyers increasingly recognise their role in braking, grip, noise and overall driving confidence.

This change is evident at the retail level. Continental now operates more than 200 brand stores across India, and feedback from retail partners suggests customers are more informed and more demanding. Availability remains critical. “There is no point launching premium tyres if customers cannot find them,” Gupta says.

To support future demand, Continental is investing around INR 1 billion at its Modipuram plant, with the focus squarely on passenger and light truck tyres. The expansion will extend manufacturing capability from the current 20-inch limit to 22–23 inches, aligning local production with emerging vehicle trends.

Localisation, Gupta argues, is about adaptation rather than compromise. Indian road conditions, climate and driving habits require specific tuning without diluting global performance standards. Education and availability remain the principal challenges.

The recent launch of the CrossContact A/T² in India reflects this strategy. Introduced during Continental’s Track Day at Dot Goa 4x4, the product positions India among the early global markets for the tyre. “The first thing you notice is noise – or the lack of it,” Gupta says. “You hear the air-conditioning, not the tyre.” Ride comfort, grip and consistency across terrains define its appeal. As Gupta puts it, “Jahan tak soch jaati hai, wahan tak yeh tyre kaam karta hai.”

Looking ahead, Continental remains largely insulated from shifts in original equipment strategies, such as the gradual removal of spare tyres. Improved carcass design and stronger sidewalls are reducing puncture risk, but the company’s primary focus remains the replacement market.

For Gupta, the question is no longer whether India is ready for premium tyres, but how effectively manufacturers execute. “The market is finally ready for premium tyres,” he concludes. With passenger vehicle sales at record levels, SUVs firmly dominant and premium consumption expanding, Continental believes it is well positioned to grow alongside India’s evolving mobility landscape.

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MAXAM Tire North America has promoted Ed Petros to Forestry & Port Segment Manager, a move that bolsters the company’s leadership in two critical speciality tyre divisions. The promotion underscores MAXAM’s focus on deepening its expertise in these sectors.

With over four decades in the commercial tyre industry, Petros brings a background rooted in a family tyre business and a degree from the University of Pittsburgh. His career includes senior roles at a major OTR tyre dealer, a leading retreading organisation and Bridgestone/GCR, covering Earthmoving, Mining, Forestry and Port applications. Over seven years at MAXAM, he has helped drive customer support, growth and market strength.

Jimmy McDonnell, Senior Vice President, MAXAM Tire North America, said, “Ed’s promotion is a reflection of the tremendous impact he has made throughout his time at MAXAM. His decades of industry knowledge, unwavering commitment to our customers and dedication to continuous improvement have helped shape our success. Ed is well-positioned to lead the continued growth and development of our Forestry and Port segments.”

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HF Group has promoted Dr M N Aji to the position of General Manager – Process Technology, elevating him from his previous role as Senior Manager – Process Technology. The appointment reflects his extensive contribution to process technology and mixing solutions across Asian markets and global operations.

Dr Aji has been associated with HF Group since 2013, leading process technology initiatives and supporting tyre manufacturers worldwide with advanced mixing solutions and technical troubleshooting. Over the course of nearly three decades in the rubber and tyre industry, he has built expertise spanning tangential, intermeshing, tandem, kneader and open mill mixing technologies.

Before joining HF Group, Dr Aji held roles at Satya Sai Polymers, Mold Teck Plastics and MRF Tyres, where he gained experience across scooter, motorcycle, passenger vehicle, truck radial, off-the-road and aircraft tyre segments.

A recognised speaker and academic contributor in the field of rubber processing and mixing technology, Dr Aji holds a PhD in Polymer and Rubber Processing and Characterisation Techniques from the UK, along with MTech, BTech and Diploma qualifications in Polymer Technology. He has conducted workshops and delivered lectures for universities, research institutions and tyre manufacturers in India and overseas.

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Epsilon Carbon Pvt. Ltd. has announced the appointment of Munish Kumar Rathi as its new President and Business Head for Carbon Black.

With more than 25 years of extensive global leadership experience, Rathi brings a strong background in profit and loss management, multi-site manufacturing leadership, strategic planning and business transformation. His career is marked by a demonstrated ability to drive operational excellence and foster sustainable growth across various international markets.

The company is anticipating that his leadership will play a key role as Epsilon Carbon continues to expand its global footprint and accelerate innovation within the carbon black business segment. The organisation has formally welcomed Rathi to the team, expressing confidence in his capacity to guide future strategic initiatives. This move underscores Epsilon Carbon’s commitment to strengthening its leadership team in pursuit of long-term global competitiveness.

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TVS Srichakra has approved capital investment of up to INR 2.2 billion to expand production capacity at its manufacturing facilities in Vellaripatti, Madurai.

The expansion will cover the company’s two-wheeler tyre and off-highway tyre plants, with investment of up to INR 1.1 billion allocated to each facility.

TVS Srichakra said the two-wheeler tyre plant currently has capacity of about 21 million to 23.5  million tyres a year and operates at utilisation levels of around 80 to 85 percent. The company plans to add about 5 percent capacity, with completion targeted in the first half of FY2028-29.

The off-highway tyre plant has existing capacity of about 75 to 85 metric tonnes a year and operates at utilisation levels of 75 to 80 percent. TVS Srichakra plans to increase capacity at the plant by about 25 percent, with the addition scheduled for the first half of FY2027-28.

The company said the investment would be financed through a combination of internal accruals and debt.

TVS Srichakra said the expansion is intended to meet growing demand for its two- and three-wheeler tyres and off-highway tyre products.

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