Retread tyres in Malaysia are unfairly blamed for road accidents. While the tyres enjoy a pristine reputation in export markets, the notoriety within the local market stems from the lack of ability to differentiate them from low-cost and low-quality tyres that fail to comply with performance standards owing to overloading, maintenance and misapplication.

A total of 1.35 million lives are lost each year in road accidents, according to data from the Ministry of Transport Malaysia. Another data set from Statista highlighted that the South Asian country witnessed 545,000 road accidents in 2022, an increase from the previous year data of 370,000.

A large portion of these accidents involve commercial vehicles and the blame is also shared by retread tyres. A recent news report highlighted rising concerns within the Malaysian parliament to ban the use of retread tyres of commercial vehicles citing safety norms.

The situation seems ironic as the Malaysian retread industry enjoys a pristine reputation in export markets. Yet, the notoriety of retread tyres on home turf might be seen as ‘collateral damage’.

Speaking to Tyre Trends exclusively on why retread tyres remain a scapegoat for road accidents, Tyre Retreading Manufacturers Association of Malaysia (TRMAM) President Edmund Wong said, “Retread tyres are often unfairly blamed for road accidents because the public struggles to differentiate them from low-cost, low-quality tyres that fail due to poor maintenance, overloading and misapplication. Many people mistakenly associate tyre debris, especially when it reveals exposed steel cords, with retreads. However, this type of failure is more commonly linked to cheap, substandard tyres rather than retreads, which, when properly maintained and used correctly, can be as safe as new tyres. The focus on retreads allows the real issues such as inadequate tyres maintenance and overloading to remain overlooked.”

IMPROVING ROAD SAFETY

Malaysia has a higher road fatality rate compared to ASEAN peers like Singapore, largely due to motorcycle-related deaths, which make up over 65 percent of fatalities.

Malaysia’s road safety goals have reportedly fallen short despite setting out clear targets. In 2014, the government aspired to reduce road fatalities by 50 percent by 2020 as part of its alignment with United Nations’ Decade of Action for Road Safety 2011-2020. The initiative was a failure and the same target was reiterated in Malaysia Road Safety Plan 2022-2030.

Current figures also raise questions over the supposed success of the target. Commenting on ways that could make the reduction target a reality, Wong noted, “To reduce road fatalities by 50 percent by 2030, Malaysia should enforce traffic laws strictly, including penalties for speeding and disobeying traffic lights, while expanding automated systems like speed and red-light cameras. Enhancing road infrastructure with safety audits, smart technology and dedicated motorcycle lanes is essential.”

“Malaysia can adopt best practices, such as dedicated motorcycle lanes, public education campaigns and improved road infrastructure, while learning from Singapore’s success in enforcement, infrastructure and safety culture. Public awareness campaigns should target risky behaviours including running red lights and promote defensive driving. Protecting vulnerable road users, especially motorcyclists and pedestrians, through improved infrastructure and safety regulations is also crucial,” he added.

Alluding to why stringent safety campaigns or regulatory measures are not undertaken to reduce motorbike fatalities, he noted, “The lack of stringent safety campaigns or regulatory measures targeting motorbike users in Malaysia is due to several factors. Firstly, motorbikes are a vital mode of transport for many due to affordability and accessibility, especially in rural areas, making stricter regulations politically sensitive. Secondly, enforcement of existing laws such as helmet use and licensing is inconsistent, particularly in rural regions, allowing unsafe practices to persist. Thirdly, cultural factors like risk-taking behaviour, resistance to change and low awareness of safety risks hinder the adoption of safer practices. Lastly, limited resources, both financial and infrastructural, result in insufficient investment in targeted campaigns and dedicated motorcycle lanes, leaving riders vulnerable.”

CLOSING GAPS

Wong iterated that to improve road safety and support the retreading industry in Malaysia, several regulatory gaps and enforcement lapses need to be addressed. One significant issue is the inconsistent enforcement of tyre standards, especially for imported new tyres.

While Malaysia requires that imported tyres have certifications like the E-mark, DOT or MS, these standards can sometimes fail to verify the genuineness and reliability of the tyres, leading to concerns about the quality and safety of some imports. This lack of stringent checks on tyres authenticity puts road users at risk and undermines confidence in tyre safety.

Additionally, there is a gap in regulations requiring regular tyre maintenance checks, particularly for retread tyres. Without mandatory inspections for tread depth, pressure and overall tyre condition, vehicles, especially commercial fleets, are at higher risk of tyre-related accidents.

Another issue is the weak enforcement of penalties for overloading and the misapplication of tyres such as using retreads in unsuitable conditions. Overloading vehicles puts excessive stress on tyres, increasing the likelihood of tyre failure, and stricter penalties are needed to deter this dangerous practice.

There is limited education on the benefits of retreads and how to use them safely, which affects their acceptance and proper usage. Implementing campaigns that highlight the safety, environmental and economic benefits of retreads could help improve perceptions and encourage safer practices.

Moreover, government procurement policies should prioritise retread tyres for public transportation fleets, encouraging their use across sectors and providing a market boost to the retreading industry.

Lastly, there is a lack of clear regulations on tyre end-of-life management including guidelines for recycling and disposal. Establishing clear regulations for the responsible management of worn-out tyre, including retreads, would support the circular economy and further promote the sustainability of the retreading industry.

Addressing these regulatory gaps and enforcement lapses would not only improve road safety but also foster the growth of a reliable, safe and sustainable retreading industry in Malaysia.

REPUTATION REVIVAL

The shadow of malignance over the local retread industry is daunting, especially considering its stellar reputation abroad. A methodical plan is urgently needed to change the prevailing perception.

Commenting on how the industry can leverage its foreign reputation to promote retreads domestically, Wong explained, “Malaysia can leverage its reputation in the global retreading industry to promote retreads domestically by focusing on education, policy support and sustainability initiatives.”

“Firstly, educating the public about the benefits of retreads, such as safety, environmental advantages and cost-effectiveness, can shift perceptions. Secondly, incentivising businesses to adopt retread tyres would not only increase its usage but also align with sustainability practices. Retreads significantly reduce waste by reusing tyre casings, contributing to lower carbon footprints and less landfill waste. Offering tax breaks, rebates or financial incentives to businesses that adopt retreads can encourage the adoption of this eco-friendly practice, benefiting both companies and the environment,” he added.

He also noted that Malaysia has a well-established certification system with Malaysian Standard 224 (MS 224), which sets high-quality standards for retread tyres. This national standard ensures that domestically produced retreads meet rigorous safety and quality requirements, reinforcing consumer confidence and helping local manufacturers maintain global competitiveness. By promoting this certification and its benefits, Malaysia can further build trust in its retreading industry and drive domestic demand for high-quality retreads.

He also noted that partnerships with universities, research institutions and organisations such as the Malaysian Rubber Board (MRB) could play a pivotal role in establishing Malaysia as a hub for innovation in tyre retreading. These collaborations would enable research and development focused on improving the quality, safety and efficiency of retread tyre, which could enhance their appeal domestically and internationally.

“The Malaysian Rubber Board has extensive expertise in rubber technology and the development of new rubber compounds, which are crucial for retreading. By working with these organisations, Malaysia could explore advanced rubber materials and improve the durability and performance of retread tyres. MRB’s research could focus on optimising the rubber used in tyre retreading, enhancing its resilience and performance under various road conditions, thus improving the overall safety of retreads. Universities and research institutions bring additional expertise in materials science, engineering and sustainability and can help address any technical gaps in the retreading process. They could collaborate with retreading companies, fleet operators and tyre manufacturers to develop new retreading technologies, better tyre monitoring systems and more efficient processes,” explained Wong.

He added, “These partnerships could also produce credible, science-backed data on the reliability and safety of retread tyre, helping to build public trust and dispel misconceptions about retreads.”

FILLING DATA GAPS

The lack of local data to validate the reliability and safety of both retread and new tyres in Malaysia stems from several key factors, according to Wong.

“Primarily, there is a significant gap in research due to the lack of collaboration between tyre manufacturers, retreaders, fleet operators, research institutions and government agencies. Without cooperation among these stakeholders, there is little incentive or infrastructure to collect and analyse tyre failure data in the local context. This leads to a situation where tyre failure research is outdated or non-existent, leaving the industry to rely on studies from other countries such as US, which may be many years old and not reflective of current tyre technology or local conditions,” noted Wong.

He added, “This problem is not unique to Malaysia; many countries face similar challenges in gathering and sharing tyre-related data. For example, tyre debris reports and studies on tyre failures tend to be infrequent and may not accurately capture the complexities of modern tyre usage, road conditions or fleet operations. To address this gap, a collaborative effort among different stakeholders, both local and international, could be instrumental.”

Collaborations could fund and conduct comprehensive studies on tyres performance under local conditions. By sharing data and expertise, these stakeholders can develop a more accurate understanding of the causes of tyre failures, improve maintenance practices and promote better safety standards for both new and retread tyres.

Additionally, international partnerships could allow for access to global tyre failure databases and new research, enabling Malaysia to adopt best practices from countries like US, Japan or the EU, where more tyre safety research is available.

Establishing a framework for ongoing research and data sharing with regular updates and reports would help fill the data gap and improve tyre safety standards locally. This collaborative approach could ultimately lead to the development of localised tyre safety standards, improved regulations and more informed decision-making by all stakeholders involved.

NEW LEARNING

According to Wong, Malaysia can learn important lessons from countries like Japan and UK, where retread tyres are promoted effectively for their cost-efficiency and environmental benefits. Both Japan and the UK have robust local manufacturing industries for new, high-quality tyres, which ensure a consistent supply of durable tyre casings for retreading.

This industrial advantage helps protect the respective retreading industries by ensuring the availability of reliable casings that meet safety and performance requirements. Japan enforces stringent standards for both new and retread tyres through the Japanese Industrial Standards (JIS) such as JIS D 4202, which defines specifications for automobile tyres. These regulations ensure high-quality tyre production and maintenance, supporting a thriving retreading ecosystem.

Similarly, UK relies on the ‘E’ mark certification system, which aligns with European safety and performance regulations. The ‘E’ mark, prominently displayed on compliant tyres, indicates that a tyre has undergone rigorous testing and meets safety standards. This harmonised approach in UK ensures that only certified-quality tyres are used, reducing risks and building trust in retread tyres.

In Malaysia, the absence of a local new tyre manufacturing industry for trucks presents a challenge. The reliance on imported new tyres, coupled with the fact that Malaysia’s new tyre standard (MS 1394) is not compulsory, allows low-cost and lower-quality imports to flood the market.

These tyres often produce casings unsuitable for retreading, which undermines the retreading industry. To address these issues, Malaysia could make MS 1394 mandatory for new tyres, ensuring better-quality casings and fostering trust in retreads.

Additionally, promoting awareness of retreads’ economic and environmental benefits, strengthening enforcement of Malaysian Standard 224 (MS 224) for retread quality and offering incentives for their adoption could help the industry grow.

Technology, such as tyre monitoring systems, can play a significant role in addressing concerns about retread tyres and improving road safety. These systems provide real-time data on tyre pressure, temperature, tread depth and overall tyre health, helping to ensure that all tyres, including retreads, are properly maintained.

By monitoring tyre performance, these systems can detect early signs of wear, overloading or misapplication, reducing the risk of tyre failure. This not only enhances the safety of retread tyre but also helps prevent accidents caused by poor tyre maintenance or low-quality tyres, leading to a change in perception.

Tire Rack is celebrating the induction of its co-founder and longtime CEO, Mike Joines, into the Tire Industry Hall of Fame. The company credits Joines' automotive passion as the foundational spark for its mission to transform the tyre industry. Under his leadership, Tire Rack pioneered one of the first e-commerce platforms for tyre retailing, fundamentally changing how consumers research and purchase tyres.

The company’s philosophy, established by Joines, centred on empowering customers through comprehensive information rather than just completing a sale. This customer-first approach was built upon providing detailed product reviews, performance testing data, side-by-side comparisons and expert guidance.

Tire Rack also acknowledges that Joines understood the critical role of its team, noting that the ingenuity and integrity of its employees have been the true driving force behind decades of innovation and sustained customer trust. The company honours Joines as an enthusiast, innovator and leader whose devotion remains a source of inspiration.

Goodyear Tire & Rubber reported a net loss of USD 2.2 billion for the third quarter of 2025, weighed down by significant non-cash charges, even as its “Goodyear Forward” transformation programme continued to deliver strong operational benefits and major divestitures were completed.

The tyre maker said segment operating income rose to USD 287 million in the quarter, reflecting USD 185 million in cost-saving benefits from Goodyear Forward, which helped offset inflationary pressures, lower volumes and the absence of prior-year insurance recoveries.

“We delivered a meaningful increase in segment operating income relative to the second quarter in an industry environment that continued to be marked by global trade disruption,” said Mark Stewart, Chief Executive Officer and President. “This growth underscores our strong product portfolio and the consistency of our execution under the Goodyear Forward plan, both of which we expect to support further acceleration in our earnings during the fourth quarter.”

Goodyear’s quarterly net sales were USD 4.6 billion, with tyre unit volumes at 40 million. The company recorded a USD 1.4 billion non-cash deferred tax asset valuation allowance and a USD 674 million goodwill impairment charge during the quarter. Adjusted net income was USD 82 million, compared with USD 102 million a year earlier.

The company stated that all planned asset sales under its Goodyear Forward plan had now been completed, generating total gross proceeds of approximately USD 2.2 billion, which will be used to reduce debt and reinvest in growth.

On 31 October, Goodyear finalised the sale of the majority of its Goodyear Chemical business to an affiliate of Gemspring Capital Management, LLC, for USD 650 million, subject to adjustments. At closing, Goodyear received approximately USD 580 million in cash, which reflected working capital adjustments, including those for intercompany receivables.

“With the sale of our Chemical business, we have completed all of the planned asset sales included in our Goodyear Forward transformation program,” said Stewart. “Additionally, we surpassed initial expectations, with total gross proceeds from the divestitures of approximately USD 2.2 billion. As a result, we have a more focused, streamlined portfolio that will allow us to grow our core products and services and achieve our vision of being #1 in Tires and Service.”

The sale included Goodyear Chemical facilities in Houston and Beaumont, Texas, as well as a research office in Akron, Ohio. The company retains its chemical plants in Niagara Falls, New York, and Bayport, Texas, as well as the rights to the products produced there.

By region, the Americas segment reported third-quarter sales of USD 2.7 billion, a 4.2 percent year-over-year decline, as replacement tyre volumes decreased due to high inventories of imported products in the US market. Segment operating income fell to USD 206 million from USD 251 million.

In Europe, the Middle East and Africa (EMEA), sales rose 4.4 percent to USD 1.4 billion, supported by favourable currency movements and stronger price/mix. Operating income increased to USD 30 million from USD 23 million a year earlier.

Asia Pacific sales fell 18.9 percent to USD 501 million, reflecting the sale of the Off-the-Road (OTR) tyre business and softer demand in Japan, Australia and China. Segment operating income dropped to USD 51 million from USD 72 million.

Goodyear said it expects to achieve about USD 1.5 billion in annualised run-rate benefits from the Goodyear Forward programme by the end of 2025.

Tomoshige “Tomo” Mizutani, advisor and former Chairman and Chief Executive of Nitto Tire USA Inc., has been inducted into the Tire Industry Hall of Fame, one of the sector’s most prestigious honours.

The induction, hosted by the Tire Industry Association (TIA), will take place in Las Vegas alongside the 2025 SEMA Show, running from November 4 to 7.

With more than four decades in the tyre industry, Mizutani is widely credited with transforming Nitto Tire USA from a struggling operation in the early 1990s into a billion-dollar brand recognised for its innovation, performance, and strong connection with car enthusiasts.

“Our 2025 inductees embody the spirit of innovation and service that defines the tyre industry,” said Dick Gust, CEO of the Tire Industry Association. “Their contributions have improved safety, expanded opportunity, and shaped the way we do business worldwide.”

Mizutani’s approach combined deep market insight with bold risk-taking. By engaging with emerging communities of young car enthusiasts and later expanding into the off-road segment, he helped reposition Nitto as a brand built around passion and creativity.

Known for embracing innovation, Mizutani was among the first to champion enthusiast-driven product development and leverage digital and social media marketing to build brand loyalty. Under his leadership, Nitto cultivated a social media community exceeding 13 million followers, making it one of the most engaged automotive brands online.

“When new game-changing innovations would arise,” Mizutani said, “we viewed them as huge opportunities instead of risks.”

A frequent speaker at leading universities and industry events, Mizutani has shared his philosophy of creativity, resilience and perseverance with aspiring business leaders, often reminding audiences to “never ever give up.”

“This honour is beyond my dreams,” Mizutani said. “I’ve been privileged to meet and learn from industry legends who inspired me since my first day in America. I am deeply grateful for the incredible people who have guided, challenged, and supported me throughout my journey.”

Finnish tyremaker’s third-quarter operating profit surges 427 percent to 21.8 million euros. Romanian factory ramp-up progressing as planned, now operating 24/7. Heavy investment phase nearing its end as the company targets a cash flow turnaround.

Finnish tiremaker Nokian Tyres reported a more than fivefold increase in third-quarter operating profit, as aggressive pricing increases in passenger car tyres and improved manufacturing efficiency offset challenging market conditions and years of operational upheaval.

The company, known for its winter tyres, said operating profit jumped 427 per cent to 21.8 million euros ($23.7 million) in the July-September period from 4.1 million euros a year earlier, when results were dragged down by 13.3 million euros in inventory write-downs related to contract-manufactured products.

Net sales grew 10.8 percent to 344.1 million euros at constant exchange rates, with the company achieving growth across all regions despite what it characterised as stable replacement tyre markets in Europe and declining conditions in North America.

“I have to say that I’m very pleased to tell you that we are really moving in the right direction,” President and Chief Executive Paolo Pompei told analysts on a conference call. “Our operating profit increased significantly. Obviously, this is very encouraging for the future journey that we have ahead.”

Pricing Strategy Delivers Results

The improvement was driven primarily by price increases implemented from late in the first quarter onward to offset rising raw material costs and to reposition products in Central Europe and North America, Pompei said.

In the passenger car tyre segment, which accounts for the bulk of Nokian’s business, net sales rose 13.2 percent to 234 million euros, whilst segment operating profit climbed to 38.9 million euros from 34.4 million euros. The segment’s operating margin rose to 16.6 percent, up from 16.4 percent a year earlier.

Interim Chief Financial Officer Jari Huuhtanen said price and mix effects contributed a positive 35 million euros to operating profit in the passenger car tyre segment in the quarter. However, this was partially offset by 25 million euros in supply chain costs, related mainly to non-recurring items from the previous year.

“Our average sales price with comparable currencies improved, and the sales of higher than 18-inch tyres increased significantly,” Huuhtanen said. “Segment operating profit improved due to price increases and a favourable product mix.”

Pompei acknowledged that volume declined 3.3 percent in the quarter but said this was “well justified by the comparability with the previous year, due to the action we made in order to release the slow-moving stock that we have accumulated due to the crisis in the Red Sea channel.”

Asked about the sustainability of price increases, given that larger competitors have recently lowered their price-mix assumptions, Pompei said: “We cannot keep increasing pricing. It was extremely important for us, again, to compensate for the increase in rising raw material costs and, at the same time, to gradually reposition in Central Europe and in North America.”

He added that the company was “not expecting the price increase to affect volume at this stage” beyond the comparison effects from last year’s inventory clearance.

Romanian Factory Hits Milestone

The company’s new factory in Oradea, Romania - described as the world’s first full-scale zero-CO2-emissions tyre factory - is progressing according to plan and is now operating four shifts to enable round-the-clock production.

Nokian said it would deliver approximately one million tyres from the Romanian plant this year, up from zero in 2024. The factory began customer deliveries in the second quarter.

“One million is the production, but the capacity already by the end of the year will be up to three million pieces and up to the end of next year, up to six million pieces,” Pompei explained. “We need to distinguish between production and capacity.”

He said the remaining capacity expansion would focus on mixing and semi-finished product lines rather than curing and building machinery, meaning capital expenditure requirements would be “really limited” for the next three years.

The Romanian facility has launched two new product lines for Central and Southern European markets, most recently the Powerproof 2, a premium ultra-high-performance summer tyre unveiled at an event in Spain attended by 160 guests from across the region.

Pompei said that in future, “more than 80 percent of what we sell in the European market will be supported by our Romanian factories for Central Europe as well as South Europe.”

North America Shines, Heavy Tyres Struggle

North America emerged as a standout performer, with sales surging 27 percent despite a declining market, driven by favourable tariff developments.

“We are finally doing extremely well in North America, and we are very pleased with the journey that we have done so far,” Pompei said.

Canada removed 25 percent counter-tariffs on U.S.-produced tyres on 1 August, whilst the United States reduced tariffs on EU tyre imports from 25 percent to 15 percent on 1 September. Nokian produces approximately 85 per cent of its U.S. volume at its Dayton, Tennessee, facility.

“Obviously, today we are in the ideal situation to deliver tyres from the US to Canada without duties,” Pompei said.

The company also disclosed a new partnership with American Tire Distributors (ATD), the largest national distributor in the United States. However, Pompei noted exposure was “relatively low” as the relationship was beginning.

However, the heavy tyres division struggled, with net sales falling 4.4 per cent to 55.4 million euros at constant exchange rates, as weakness in truck and agricultural tyre markets persisted. Segment operating profit dropped to 5 million euros from 7.5 million euros, impacted by lower volumes and inventory revaluation effects.

Asked when the agricultural market might recover, Pompei said: “I believe the agri business in particular is subject to cycles, and cycles can be long or short, but in general, obviously, we are now landing at the end of the second, I would say almost the second year of a downturn.”

He added: “I’m expecting the agri business at the level in particular to recover pretty soon in the next six to 12 months.”

Winter Season Outlook, Efficiency Drive

Looking ahead to the crucial winter tyre selling season, Pompei said the weather in September had been “a little bit too warm” but conditions were improving.

“Now it is getting colder, both in the Nordics as well as in North America,” he said. “We are expecting the winter tyre season to basically start, as I speak in this moment in November.”

The company’s flagship winter products continued to receive strong reviews, with the Hakkapeliitta 10 studded tyre and Hakkapeliitta R5 non-studded tyre taking top positions in multiple European tyre tests.

Nokian also announced it had begun personnel negotiations in Finland regarding efficiency improvements, which have resulted in eight permanent white-collar job cuts.

“This is part of our journey when we want to improve efficiency and productivity,” Pompei said. “This is necessary to support the company in this journey.”

The company’s Vianor retail chain reported improved performance, with net sales rising 7 per cent at constant exchange rates to 74.9 million euros, whilst the segment’s operating loss narrowed to 6.4 million euros from 6.6 million euros.

Nokian maintained its 2025 guidance unchanged, expecting net sales to grow and segment operating profit as a percentage of net sales to improve compared with the previous year.

The company said tyre demand in its markets is expected to remain at 2024 levels. However, it cautioned that “development of the global economy as well as geopolitical, trade and tariff uncertainties may cause volatility to the company’s business environment.”

For the first nine months, net sales grew 9.4 percent to 957.3 million euros, whilst segment operating profit rose to 40.2 million euros from 35.4 million euros. Segment EBITDA margin improved to 14.1 percent from 13.5 percent.

Asked about margin volatility in the passenger car segment, which has swung sharply on a quarterly basis over the past two years, Pompei said stability should improve.

“Of course, you will see more stability in the development of the margins moving forward, because now, finally, we can leverage our increased capacity, we can leverage an efficient manufacturing footprint,” he said.