Changing Tyre Dynamics In A Changing Car Market
- By Sharad Matade
- February 27, 2026
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.
Pirelli Extends Winning Streak Into 2026 With New Cinturato
- By TT News
- March 16, 2026
Pirelli has commenced 2026 by building upon its record-breaking previous year, which was distinguished by numerous victories and podium placements across its entire product portfolio and its innovative Cyber Tyre technology. This exceptional momentum is underscored by the remarkable performance of the recently launched summer Cinturato, a tyre engineered for premium sedans and CUVs that has rapidly established itself as a benchmark for safety, longevity and dynamic equilibrium. Having already secured two wins in 2025, the next-generation Cinturato has added two outright victories and three podium finishes in the opening months of 2026, excelling in six comparative tests conducted by leading European automotive publications and independent organisations.
The Cinturato's success story includes a premier position in a test by Tyre Reviews, where it was lauded as the best summer tyre of the year for its impeccable dry braking and precise steering feedback. It also achieved a triumph in evaluations by the Automobilclub von Deutschland, earning an ‘excellent’ rating and top marks in safety-critical areas like dry braking and aquaplaning resistance. Further reinforcing its technological sophistication, the tyre secured second place with a ‘Highly Recommended’ rating from the ADAC, which recognised its robust durability and diminished environmental footprint alongside its balanced handling.
Additional podium finishes came from Auto Zeitung, which praised the Cinturato as a tyre devoid of weaknesses for its safe handling and impressive mileage, and from Sweden's Vi Bilägare, which highlighted its agile nature and short stopping distances. The tyre's comprehensive capabilities were also affirmed by Auto Bild, where it progressed from a strong qualifying performance to the final round, impressing testers with its grip and balanced behaviour, especially on wet surfaces.
This outstanding beginning to the year for the Cinturato is part of a broader renewal of Pirelli's summer offerings, which recently welcomed the fifth-generation P Zero, the quintessential tyre for sports cars, and the third-generation Scorpion, the latest evolution designed to deliver safety and enduring performance for SUVs.
- Prinx Chengshan
- Heilongjiang Agricultural Machinery Exhibition
- Agricultural Tyres
- Tractor Tyres
- Combine Harvesters
- OTR Tyres
Prinx Chengshan Displays Next-Gen Agricultural Tyres At Heilongjiang Expo
- By TT News
- March 16, 2026
Prinx Chengshan, together with its brand Chengshan, participated in the 25th Heilongjiang Agricultural Machinery Exhibition in Harbin on 14 March 2026. The event served as a platform to advance the modernisation of China’s agricultural machinery sector and foster industry exchanges. In this context, the company displayed a comprehensive range of agricultural tyres tailored for tractors and combine harvesters.
For tractors, the company presented its agricultural radial tyre series. The TX600 model is engineered with robust tread blocks and a cut-resistant compound, ensuring stable handling during high-speed operations while offering strong defence against punctures. The TX700 features a reinforced carcass and belt structure, providing significant load capacity and superior traction to perform effectively in wet and uneven fields. Meanwhile, the TX800 incorporates a deep R-1W tread pattern and a specialised wear-resistant compound, supported by strengthened beads and shoulders. This design enhances resistance to damage from straw and stones, thereby extending tyre longevity. Addressing the needs of combine harvesters, the TX2000 model delivers a 20 percent increase in load capacity and excellent flexibility. Its low-pressure, wide-footprint design minimizes soil compaction, aligning agricultural efficiency with environmental sustainability.


Additionally, the company’s bias tyre offerings, the CSY90 and CSY93, were also showcased. These tyres feature a traditional herringbone tread pattern that ensures effective self-cleaning and robust traction. They maintain reliable performance in challenging terrains such as soft sand and muddy fields, while their durable construction supports continuous operation during peak farming periods.

With the global push towards agricultural modernisation and mechanisation, Prinx Chengshan has strategically expanded its off-the-road (OTR) tyre operations. A key milestone in this effort is the newly operational green smart factory for OTR tyres. With an investment exceeding RMB 1.1 billion (approximately USD 159.50 million) and spanning over 100,000 square metres, the facility is designed to produce 84,000 engineering tyres and 10,000 giant tyres annually. Serving diverse sectors including mining, construction and agriculture, this initiative enhances the company’s high-end product portfolio and promotes the sustainable advancement of China’s OTR tyre industry.
Looking ahead, Prinx Chengshan intends to uphold its integrated product and service approach. By advancing agricultural tyre technology, the company aims to support the evolution of agricultural machinery through intelligent and sustainable solutions, contributing to the sector’s continued progress.
Tructyre Appoints Mark Holland As New Operations Director
- By TT News
- March 15, 2026
Tructyre has announced the appointment of Mark Holland as its new Operations Director, effective from April 2026. In this role, he will leverage his extensive background in managing large-scale mobile service operations to enhance support for fleet customers across all sizes.
Holland transitions to Tructyre from ATS Euromaster, where he spent nearly six years as Operations Director. His tenure there also included leadership positions such as Head of Mobile Operations, Head of Network Development and Area Operations Manager. Prior to joining ATS Euromaster in 2011, he served as Network Manager at Auto Windscreens, where he was responsible for overseeing the company’s mobile teams.
In his new capacity, Holland will oversee a 350-strong fleet of service vehicles, along with tooling, equipment, supply chain and distribution. He will also manage Tructyre’s 24/7 Customer Experience Centre in Gateshead, which handles over 11,000 calls each month. Tructyre specialises exclusively in mobile servicing for trucks, trailers, buses and coaches. Its operations are supported by a network of 40 depots across England, Wales and Scotland, supplemented by additional stocking points, ensuring technicians have round-the-clock access to the necessary fitments for both planned service work and roadside emergencies.
Holland said, “Tructyre is partway through a major investment in new systems, so it’s an exciting moment to be stepping into this role. These upgrades will streamline processes for both our technicians and colleagues within our Customer Experience Centre, enabling us to deliver an even faster, more efficient service for fleets. Few industries carry the responsibility that ours does, and the opportunity to help de‑risk Britain’s commercial vehicle fleets is one I take seriously. I’m looking forward to driving operational excellence in everything we do and ensuring our customers have complete confidence in their tyres.”
MRF’s Arun Mammen Secures Second Term As ATMA Chairman
- By TT News
- March 14, 2026
Arun Mammen, Vice Chairman and Managing Director of MRF Ltd, has been appointed to another term as Chairman of the Automotive Tyre Manufacturers' Association (ATMA). This industry body represents India's automotive tyre sector at the national level. Meanwhile, Rajarshi Moitra, Managing Director of Bridgestone India Private Limited, has assumed the role of Vice Chairman. In a separate leadership transition, Sanjay Chatterjee, formerly Assistant Director General, has been promoted to Director General of ATMA. He takes over from Rajiv Budhraja, who is set to retire on 31 March 2026.
Mammen’s educational background includes graduation from Madras Christian College and an MBA from Ashland University in United States. His professional development was significantly enhanced by extensive training with B F Goodrich Tire & Co. and Uniroyal Goodrich Tire & Co. during his time in US, an experience that proved highly beneficial in his subsequent career. He was appointed Managing Director of MRF Ltd in 2004 and later became Vice Chairman and Managing Director in 2017.
His initial tenure as ATMA Chairman began at a pivotal moment last year, coinciding with the organisation's Golden Jubilee celebrations. Established in 1975, ATMA stands as one of the country's most prominent national industry associations, representing an automotive tyre industry valued at over INR 1 trillion. The association's membership encompasses major Indian and international tyre manufacturers, who collectively account for more than 80 percent of India's total tyre production.

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