- free
- motoring
CUTTING EDGE: DR JÖRN SEEVERS OF KE FISCHER DISCUSSES THE FUTURE OF TYRE PRODUCTION
- by Sharad Matade
- April 23, 2024

In an interview with Dr Jörn Seevers, CEO of KE FISCHER, the world leader in cord cutting technology, we delve into the company’s strategic growth and its vision for the future. The discussion explores the significance of the recent acquisition of KONŠTRUKTA-TireTech (K-TT) and its impact on KE FISCHER’s position in the market. We also gain insights into the crucial role of cord cutting lines in tyre production, the challenges they address and the opportunities it presents. Seevers sheds light on how KE FISCHER navigates the evolving regulatory environment and outlines the company’s vision for the future of cord cutting lines, emphasising innovation, quality, and environmental sustainability.
How has the business developed after the acquisition of KONŠTRUKTA-TireTech?
The acquisition of KONŠTRUKTA-TireTech, s.r.o. (K-TT) in Slovakia by KE FISCHER marks a significant step towards strategic growth and expansion in the tyre manufacturing industry. KE FISCHER has outlined ambitious plans for leveraging the acquisition to explore organic and inorganic growth opportunities. The collaboration aims to enhance the engineering and production capabilities. Additionally, KE FISCHER is focusing on expanding its service business model, which includes remote maintenance services for global customers.
The acquisition is expected to result in an even broader product range and customer base, combining KE FISCHER’s existing expertise in cutting and splicing technology with K-TT’s high-performance extrusion machinery. We expect this strategic move will foster accelerated growth, enhance customer relations and consolidate its presence in both segments of the tyre manufacturing industry.
In a strategic move to bolster its position within the tyre manufacturing sector, KE FISCHER is expanding its machinery portfolio and developing innovative equipment through a collaborative partnership with K-TT. This synergy will unlock new opportunities for both companies, fostering technological advancements, service offerings and overall industry growth.
Can you elaborate on the importance of cord cutting lines in producing various types of tyres?
Cord cutting lines play a critical role in producing various types of tyres, impacting quality and performance characteristics. The lines are so-called bottle-neck machinery and are essential for keeping the production of the whole tyre plant running.
Cord cutting lines are designed to cut the fabric or steel cord materials that reinforce tyres with high precision. This precision is essential for the tyre’s structural integrity and quality. Accurate cuts lead to efficient material usage, reducing waste and improving the overall cost-effectiveness of the production process.
How rubberised cord material is cut and laid out in the tyre can significantly affect its performance characteristics, including strength, flexibility and wear resistance. For example, the angle at which the rubberised cord material is cut and positioned can influence the tyre’s handling, stability and traction. Precise cord cutting technology optimises these angles, enhancing the tyre’s performance for its intended use, whether for passenger vehicles, trucks, bicycles, agricultural vehicles or performance racing vehicles.
Modern cord cutting lines are often integrated with quality control technologies, such as cameras and sensors, to detect material flaws or errors in the cutting process. This integration helps ensure that only materials that meet strict quality standards are used in tyre production, leading to tyres of superior quality.
Different types of tyres, such as radial versus bias tyres, require different cord arrangements and materials. Radial tyres, for instance, have cords that run perpendicular to the direction of travel, offering improved handling and wear characteristics. Bias tyres have cords that run at an angle to the direction of travel, providing a comfortable ride at lower speeds. Cord cutting lines must be versatile enough to handle different materials such as fabric, steel and others, and cutting specifications to produce a wide range of tyre types.
Automated cord cutting lines in tyre manufacturing enhance production efficiency and consistency and increase machine availability. Automation allows for the rapid processing of materials with minimal human intervention, reducing the likelihood of errors and increasing production speed. This efficiency is critical in meeting the high demand for tyres across various sectors, including automotive, aviation and industrial machinery.
Efficient cord cutting lines also contribute to sustainability efforts in tyre manufacturing. Manufacturers can minimise their environmental footprint by optimising material usage and reducing waste. Additionally, precise cutting reduces the need for excess raw materials, contributing to more sustainable production practices.
In summary, cord cutting lines are essential in tyre manufacturing, influencing everything from the efficient use of materials and production costs to the final product’s performance, quality and environmental impact. These lines’ precision, automation and versatility enable manufacturers to produce tyres that meet diverse requirements, ensuring safety, reliability and performance.
Thanks to operating in a niche, KE FISCHER is in constant contact with tyre manufacturers, and thus, it can be aware quickly of any possible challenge.
Each type of tyre requires a specific material, e.g. fragile material for bicycle tyres, or extremely thick material for OTR tyres.
What specific challenges in the tyre production industry led KE FISCHER to specialise in cord cutting lines?
The first cutting line for the tyre industry was built in the 1970s when a German-based tyre manufacturer asked KE FISCHER to investigate this field because of KE FISCHER’s immense experience and excellent know-how in cutting sheet metal products.
After this first line was successfully put into production, the door was now open for this new field of activity. KE FISCHER gained more expertise in producing cord cutting lines for the tyre production industry, which is a response to several specific challenges and needs within the sector. Integrating cord cutting seamlessly into the tyre manufacturing process improves efficiency and reduces production times. Specialised lines can be designed to fit into existing production lines, enhancing workflow and productivity.
The tyre industry constantly evolves with new materials, designs and specifications. Specialising in cord cutting lines allows KE FISCHER to stay at the forefront of technological advancements, offering solutions that meet the latest industry standards and requirements. Tyre manufacturers require customised solutions to meet specific production needs. A company specialising in cord cutting lines can offer more flexible and tailored solutions than a generalist machinery supplier, addressing unique challenges tyre producers face. The industry faces strict safety and environmental regulations. Specialised cord cutting lines can help manufacturers comply with these regulations by ensuring precise cuts that reduce waste and incorporating features that minimise ecological impact.
KE FISCHER’s focus on developing specialised cord cutting lines reflects a strategic response to these challenges, positioning the company as a critical partner for tyre manufacturers seeking to improve their production processes, enhance product quality and achieve greater operational efficiency.
Where does the company find more opportunities among the applications – from bicycles and cars to off-the-road and aeroplanes?
KE FISCHER specialises in providing cutting lines for the tyre industry, focusing on various applications from two-wheel vehicles, light vehicles and trucks to OTR tyre manufacturers. The company is a world leader in developing and manufacturing steel and textile cord cutting lines used for all kinds of tyres. This indicates that KE FISCHER is actively involved in supplying equipment essential for the production of tyres across a broad spectrum of vehicle types, including bicycles and cars.
The opportunities for KE FISCHER, among its various applications, depend on the demand for tyres in each sector. Given the company’s focus on providing cutting lines for tyre manufacturers, sectors with high growth in tyre demand would present more opportunities. The automotive and OTR sectors are traditionally large consumers of tyres, driven by both consumer demand and industrial applications. The bicycle sector has also grown, especially with the rise in eco-friendly transportation and urban cycling.
How does KE FISCHER navigate and adapt to changes in the tyre production industry’s regulatory environment?
KE FISCHER adapts to changes in the regulatory environment through several key strategies. KE FISCHER focuses on continuous research and development to ensure its machinery meets the latest environmental and safety standards, following EU safety regulations for all lines delivered. This includes investing in new technologies that reduce emissions, increase energy efficiency and incorporate safer, more sustainable materials.
By working closely with tyre manufacturers, KE FISCHER can understand the specific challenges and requirements these companies face due to regulatory changes. This collaboration helps in designing and modifying equipment that aids manufacturers in meeting new standards. The company’s global footprint allows it to gain insights into trends. This international perspective is of great importance for anticipating future shifts and adapting its offerings accordingly.
These strategies enable KE FISCHER not only to navigate but also to thrive amidst the evolving regulatory landscape of the tyre production industry.
What is KE FISCHER’s vision for the future of cord cutting lines, and how does it plan to stay ahead in the market?
KE FISCHER envisions its future in the cord cutting lines market with a strong focus on customer needs, innovation, quality and environmental sustainability. The company aims to maintain its position as a global leader by continuing to develop cutting-edge machinery that meets the evolving needs of the tyre industry. With a rich history of success and a commitment to research and development, KE FISCHER emphasises the importance of adapting to the continuous improvements in tyre material mixes, which requires staying up-to-date on material behaviour and adjusting cutting lines accordingly. This adaptability ensures the highest quality and efficiency of its products.
KE FISCHER’s strategic plan includes a commitment to development and design, aiming to remain the market leader by continuously developing improved and future-oriented solutions for cord cutting lines. The company leverages its extensive experience and track record of over 900 lines installed globally to enhance its technological leadership and quality standards.
KE FISCHER’s cutting lines and K-TT extrusion lines are equipped with the latest innovative technologies from suppliers and include in-house developed Industry 4.0 solutions.
In summary, KE FISCHER’s vision for the future of cord cutting lines revolves around innovation, quality, sustainability and customer-centric solutions. By continuously improving its technology and services, KE FISCHER’s explicit goal is to stay ahead in the market and meet the dynamic needs of the tyre manufacturing industry.

A proposed bill in Brazil’s Chamber of Deputies has ignited fierce opposition from the country’s tyre retreading sector, which sees the legislation as an ill-conceived and uninformed attack on an industry that plays a crucial role in the economy and sustainability efforts. The bill seeks to ban the use of retread tyres on buses and trucks operating on state and federal highways, a move that the industry argues is both impractical and detrimental.
Brazil is the world’s second-largest retread market, following only the United States. This achievement has been attributed to the reliability and quality of work carried out by retreaders, which has earned the market’s trust.
In September 2024, a draft bill was introduced in Brazil’s Chamber of Deputies to exercise a ban on the use of retread tyres in buses and trucks operating on state and federal highways. The Brazilian Association of Tyre Retreading (ABR) lashed out at the proposed draft, labelling it as ‘misguided and uninformed’.
Subsequently, ABR President and Federal Senator of Mato Grosso, Margareth Buzetti, told Tyre Trends, “The proposed bill focuses on retread tyres rather than broader factors such as overloading, poor road conditions or inadequate maintenance practices due to sheer misinformation on the part of the person who proposed the project. It is a simplistic and populist proposal that promises to increase road safety by fighting the wrong enemy. Tyres retreaded in Brazil undergo extremely rigorous inspections to ensure that they reach the transport companies safely and reliably.”
“We, as retreaders, meet Inmetro standards that define the technical requirements for tyre retreading, following the standards of excellence practiced in other countries. We are talking about large companies that have strict quality standards. We are in no way inferior to new tyres in terms of safety,” she added.
According to Buzetti, no reputable company would compromise on tyre safety as doing so could lead to financial losses from accidents and endanger lives. She also pointed out that the sector’s ability to generate approximately 300,000 direct and indirect jobs is a testament to the high quality of retreaded products.
Commenting on how the proposed bill might influence public perception about the sustainable practice, she noted, “The way it was proposed is terrible because it gives people the impression that retread tyres in Brazil are of poor quality and are responsible for road accidents. This is absurd misinformation. However, I do not see this issue as something that concerns the general population. Transport companies, which are the largest users of retread tyres, are aware of the reality.”
“Entities linked to both the reform and transportation sectors sent dozens of letters to the Chamber of Deputies against the proposed bill. We will continue this pressure in 2025,” she added.
The association plans to seek out the rapporteur and the author of the bill so that they understand the seriousness of the work carried out by the sector. “The right thing to do would be for the congressman to withdraw the bill he presented and file another one that focuses on combating illegally-made reforms or the poor-quality tyres that are imported from Asia without any control whatsoever. Then they will have our support. Otherwise, we will seek out partner congressmen to wage a real battle within the Chamber against the advancement of this absurd proposal,” contended Buzetti.
IMPLICATIONS OF THE BILL
Buzetti noted that if the proposed bill was implemented, then the implications would be ‘catastrophic’. “If the bill were to become law, the long-term impact on Brazil’s tyre industry would be devastating. Companies are already struggling with the rising cost of raw materials due to increase in the Dollar-Brazilian Real exchange rates. Banning tyre retreading would further cripple the sector, leading to significant financial and operational challenges,” she said.
Currently, tyre retreading saves Brazil BRL 7 billion in transportation costs. If the proposed bill becomes law, which the ABR believes is unlikely and will actively oppose, it would effectively force transportation companies to buy only new tyres overnight, causing a massive rise in costs.
Alluding to the potential impact of this legislation on Brazil’s carbon neutrality and sustainability goals, Buzetti emphasised, “The sector was recently recognised by the Ministry of the Environment as an important asset in the circular economy. This was a milestone that we achieved at great cost, and the government is finally beginning to see our importance for environmental sustainability. I believe that 2025 will be the year in which we will be able to make even more progress on this issue. We cannot ignore the importance for the environment of a sector that retreads 14 million tyres per year.”
While the association can furnish data demonstrating the safety and reliability of Inmerto-certified retread tyres to battle the proposed bill, Buzetti, attacking the project makers, said, “Can the deputy who created the project present data that guarantees that the lack of safety on the roads is caused by retread tyres?”
Commenting on the bill’s impact on small and micro enterprises if implemented, Buzetti said, “Tyre retreading supports 300,000 jobs in Brazil today. It is a well-established market. Banning retreading would be like taking food off the table for thousands of Brazilians who rely on this sector.”
ALTERNATIVE ROUTE
According to Buzetti, the legislative year ended with this bill being presented to the Chamber of Deputies’ Transport and Roads Committee and it did not receive any amendments within the statutory deadline. Now, in February, discussions on the proposal can begin and she highly doubts that it will move forward. As a senator, she will not participate in the votes in the Chamber but will personally go to the committee to talk to all the deputies to demonstrate the quality of tyre retreading in Brazil.
Speaking on the steps that the government should take to address any lingering safety concerns and prevent future proposals like this, in case the bill was withdrawn, Buzetti said, “Inspection of poor-quality tyres entering the country and incentives for tyre retreaders to continue operating within the law is a necessary step. I presented a bill that is currently pending in the Chamber of Deputies that provides tax exemption for tyre retreading companies, as a way of attracting them to formality.”
She also noted, “Instead of banning retread tyres, we could have greater oversight of imported tyres that enter Brazil illegally. We are talking about tyres that are so bad that they don’t even need to be refurbished. These should be a priority for parliamentarians. And, of course, improving road conditions and oversight of the rules that must be followed by transport companies (such as not exceeding the maximum load) are also important steps to increase road safety.”
- CEAT
- SportDrive
- CALM Technology
- RPG Group
- Run-Flat Tyres
- Lakshmi Narayanan B
- Renji Issac
- Vishal Pawar
CEAT Gets Ready To Tap Into Premium Passenger Vehicle Market
- by Nilesh Wadhwa
- April 24, 2025

With a fresh onslaught of tyres for the luxury and premium performance vehicles, CEAT furthers its positioning in the PCR segment.
CEAT, the flagship company of the RPG Group, is targeting to be amongst the top 10 tyre makers globally and is outlining an ambitious growth strategy that looks to expand its product offerings across segments and the globe.
On 19 March 2025, CEAT expanded its SportDrive tyre series with the launch of new products targeted specifically for luxury and high-performance passenger vehicles. The idea, however, goes beyond just chasing volumes. The company launched Run-Flat tyres, which withstand punctures and can be safely driven at considerable speeds for up to 80 km before needing repair. This also made CEAT the first Indian tyre maker to roll out such a product in the country.
Furthermore, it has also introduced 21-inch ZR-rated tyres that are designed to handle speeds of up to 300 kmph while also being quieter due to the CALM technology, which utilises special foam inside the tyre.
The question is, what is CEAT looking to gain, given that the Indian premium luxury car market is just a fraction of total passenger vehicle sales?
For context, last year the luxury car segment crossed the 50,000-unit sales milestone for the first time in India. In total, the premium car market saw sales of around 51,200 units in CY2024, which was about six percent higher compared to 48,500 units sold last year. This translates to just about one percent of the total passenger vehicles sales in the country. In comparison, some of the Southeast Asian markets see luxury cars compromise about 5-6 percent of the total car sales, and for markets such as Taiwan, it has reached as high as 20 percent.
CEAT, however, believes that being present in the segment is important. Lakshmi Narayanan B, Chief Marketing Officer, CEAT, told Tyre Trends, “There are two main segments. One is the world of sport SUVs, which includes the 21-inch and larger tyres. Currently, this segment is dominated by imported vehicles, making it relatively small. However, our focus is on establishing our presence for brand stature. The second segment is the luxury ecosystem, where our SportDrive tyres cater specifically to high-end vehicles. This is also where the opportunity for run-flat tyres lies. While we are launching two specific sizes, we see significant potential for expansion.”
FOCUS ON R&D
CEAT has been investing significantly towards creating new patents. For instance, in FY2024, the company cumulatively filed 171 patents and spent around INR 1.73 billion in R&D expenditure.
Coming to the recently launched products, the tyre maker has been working on them for over three years. The company’s R&D Centre in Germany and India have worked in tandem to develop world-class products that can meet the needs of the Indian as well as global markets.
“We leverage European strengths while also utilising India’s manufacturing capabilities, which creates a great combination and a significant opportunity for us. Our priority is delivering value to the customer. As we continue expanding within this particular technology, we have introduced three specific deliverables. First, we have the 21-inch ZR-rated tyre, designed for both the Indian and European markets. The German market, especially the Autobahns, requires high-speed-rated tyres, and this offering allows us to cover the entire speed rating ecosystem essential for success there. Second, we have introduced Calm Technology. This technology expands our range into the existing SportDrive and SportDrive SUV segments, which we will continue to develop over time. Third, and most importantly for India, is our run-flat tyre. Our goal is to engage with consumers and provide more relevant value. As we monitor consumer adoption, we will explore opportunities for further expansion,” stated Narayanan B.
It is important to understand, as seen in global trends, that the Indian passenger vehicle segment’s shift towards SUVs is also driving demand for bigger tyre sizes. For instance, 16-inch tyres are becoming a common sight, while demand for 17-inch and 18-inch tyres are being demanded in the aftermarket segment.
But what about the recently introduced 21-inch tyres, where the demand in India remains miniscule?
“The 21-inch tyre has significant potential in Europe, particularly on Autobahns. However, cost advantages vary by region. In a competitive market with over 100 brands per country, success depends on positioning and perceived value rather than cost alone. In Italy, for example, our brand is well regarded due to historical trust in our products,” shared Narayanan B.
ENERGY-EFFICIENT & CALM TECHNOLOGY TYRES
Pollution, energy security and sustainability are pushing industries to embrace cleaner and efficient materials, processes, production and end-products.
In the automotive industry, this translates to automakers and suppliers adopting newer technologies, chemistries and improving efficiency. Electrification of vehicles is amongst one of the newer trends being seen as a significant way to cut down on carbon emissions.
CEAT on its part had introduced EnergyDrive tyre series, which was specially designed for electric vehicles. They not only provided better energy efficiency but also lower noise.
Renji Issac, Senior VP and Head of R&D and Technology, CEAT, explained, “We started with a dedicated product range for EVs called EnergyDrive. However, we realised that, over time, tyres for EVs and internal combustion engine (ICE) vehicles would converge. We have incorporated all our learnings from EV-specific tyre development into our standard product line, ensuring that our future tyres will be suitable for both EVs and ICE vehicles. This approach reduces manufacturing complexity while providing benefits such as extended tyre life, lower noise levels and improved durability for customers.”
Narayan B added that the company sees this trend not only in passenger cars but also scooter segment, especially in India, where electric two-wheelers is seeing significant uptick. “Our EnergyRide caters to two-wheelers, passenger cars and Winenergy supports commercial trucks and buses. We are the first company to offer a complete EV-centric platform across all vehicle categories,” he said.
Vishal Pawar, Senior Vice President – Global Sales & Supply Chain Head, CEAT, revealed that the company currently has around 25 percent market share in the electric two-wheeler segment.
“In the EV ecosystem, we are a leading player, both in OE (original equipment) fitments and the replacement market. However, many consumers do not distinguish between EV and ICE tyres when replacing them. Our marketing efforts include educating mechanics about the differences and best practices for EV tyres. For instance, the Tata Nexon EV was a significant starting point for EV adoption, and now we also supply tyres for the Tata Punch EV, incorporating Calm Technology and foam-based noise reduction. This is an evolving market, and we are positioning ourselves accordingly,” said Pawar.
Right from the start, CEAT worked upon identifying potential failure modes in early development and specifically tested the Calm Technology for such conditions. Issac explained that the adhesive and foam materials have been rigorously validated to withstand extreme conditions, including high-speed driving and water exposure.
“If a tyre requires repair, only a small portion of the foam needs to be removed, and this does not impact the performance. The Calm Technology tyre offers reduction of approximately six decibels in noise, which is a significant improvement. The noise perception is not linear in a vehicle, meaning each decibel reduction translates to a notable difference in actual experience,” said Issac.
Narayanan B added that the idea was to make “these tyres as close to conventional ones as possible, ensuring ease of use for consumers. We have rigorously tested them, and they are designed to deliver tangible value without requiring special treatment from users.”
CREATING AWARENESS
In India, most of the tyre purchase decisions in the aftermarket is heavily influenced by the tyre dealer partner. CEAT too believes that there is a lack of understanding amongst customers in India when it comes to selecting the right kind of tyre for their vehicles, especially in the passenger vehicle space.
For instance, if one asks an average consumer about the speed rating of the tyre, the ideal assumption is that a tyre which fits perfectly. The tyre speed rating is denoted as T, H, V, W, Y or Z – they basically indicate that they are designed to sustain a particular speed.
The company has introduced the ZR-rated tyres that cater to the increasing demand for high-performance vehicles in India, particularly performance-oriented SUVs and sedans that require tyres capable of handling speeds above 220–240 kmph.
The SportDrive SUV tyres feature a dual-layer high-denier nylon overlay to minimise tyre growth at high speeds, enhancing stability and grip, along with a high-denier polyester fabric for durability and the ability to withstand high torque. Available in larger sizes such as 315/40ZR21, 275/45ZR21 and 285/45ZR21, these tyres cater to the super-premium segment.
They have been tested on Germany’s Autobahns and are engineered to meet global standards while being optimised for Indian driving conditions.
CEAT sees export potential in markets such as Europe and Middle East where the demand for high-performance tyres, especially in the 21-inch segment, is quite high.
GROWTH OUTLOOK
CEAT has outlined its ambition of being the second largest tyre manufacturer in the Indian passenger car radial (PCR) segment.
For this, Narayanan B shared that the company is pursuing focus on both premium as well as mass-market segments.
“Our CrossDrive, Secura SUV and Mileage X5 tyres have been well received. Success will come from balancing premium offerings like SportDrive with high-volume products that cater to the broader market,” he shared.
But what about impact of the natural rubber shortage?
Issac shared that at present India witnesses almost 500,000 metric tonnes of natural rubber shortfall and relies on import. The country has a requirement of almost 1.3 million metric tonnes of natural rubber and growing but only around 800,000 metric tonnes is currently produced domestically.
“While initiatives like the INROADS programme aim to boost domestic production, substantial benefits will only be seen post-2030. Until then, securing supply remains a priority,” added Issac.
On the other hand, Narayanan B remains upbeat on the Indian automotive industry’s growth.
“While volume growth remains uncertain, value growth is evident. People are driving more, increasing tyre demand. Despite market fluctuations, we remain focused on moving towards a leadership position in the industry,” signed off an optimistic Narayanan B.
- Apollo Tyres
- commercial vehicles
- Bharat Mobility Global Expo 2025
- Rajesh Dahiya
- Retreading
Apollo Tyres Eyes Fleet Solutions And Sustainability To Drive CV Growth
- by Sharad Matade & Gaurav Nandi
- April 24, 2025
The commercial vehicle tyre industry is at a crossroads, shaped by rising costs, shifting fleet demands and sustainability pressures. Apollo Tyres is betting on digital fleet solutions, energy-efficient tyres and retreading to stay ahead. Yet, challenges persist as India’s price-sensitive market slows the adoption of smart tyres, regulatory changes loom and global economic uncertainty adds pressure.
As the commercial vehicle (CV) segment evolves, tyre manufacturers are adapting to changing customer expectations, fleet optimisation needs and sustainability imperatives. Apollo Tyres is sharpening its focus on energy-efficient tyres, fleet solutions and the increasing demand for retreading.
At the recent Bharat Mobility Global Expo 2025, Apollo Tyres showcased its latest advancements in energy-efficient and fuel-efficient tyres. “Customers today are becoming more mature, and as tyre prices rise, fleets are looking for specialised solutions,” said Rajesh Dahiya, Vice President – Commercial.
Fleet management is seeing a shift towards outsourced solutions, where tyre manufacturers take on the responsibility of maintaining and managing tyres, allowing fleet operators to concentrate on the core business. “We are seeing a growing interest in digital solutions that allow fleets to track tyre usage remotely. Some prefer a more hands-on approach, requiring physical support and maintenance. Others are even considering pay-per-use models, where we fully manage the tyre lifecycle,” Dahiya explained.
While fleet solutions remain a nascent trend in India, the concept is well established in Europe and US. “As fleet sizes grow beyond 100-200 vehicles, operators start seeing the financial and operational benefits of working with a specialist. Even OEMs are acknowledging this shift with customers now approaching them for fleet solutions,” he added.
NEW MOBILITY TRENDS
With the rise of alternative fuel vehicles, including CNG-powered commercial vehicles, tyre manufacturers must adapt to evolving mobility trends. “Powertrains and fuel types will continue to evolve due to environmental concerns, but tyres will always be essential. What will change is their configuration and specific features,” said Dahiya. He highlighted that electric vehicles (EVs) require specialised tyres due to their higher torque and unique weight distribution.
Furthermore, the increasing cost of new tyres is pushing fleet operators towards retreading, a practice that extends the lifespan of tyres and reduces costs. “Tyres are designed to be retreaded, and when done properly, fleets can use tyres for multiple life cycles. Today, better road conditions, modern chassis and improved vehicle maintenance are making retreading a more viable option,” Dahiya stated.
Apollo Tyres is also active in the retreading sector. “We already have around 45 Apollo Retreading Zones equipped with our machinery and materials. Retreading is not just an add-on, but it is an integral part of our solutions,” he emphasised.
MARKET GROWTH
The commercial vehicle tyre market is witnessing strong growth in certain segments. “The mining and construction sectors are growing rapidly, outpacing traditional truck sales. Trailers, in particular, are seeing increased adoption,” said Dahiya. He noted that Apollo holds a market share of approximately 27-28 percent in this segment.
Smart tyres, equipped with sensors to monitor pressure, temperature and wear, are gaining traction globally. However, its adoption in India remains limited due to cost concerns. “While smart tyres represent the next step in tyre technology, widespread adoption will take time. The price sensitivity of the Indian market means that costs need to come down before mass adoption takes off. We expect significant growth in the next 5-7 years,” Dahiya predicted.
Sustainability is also becoming a key focus for the tyre industry. “We have tyres that contain 75 percent sustainable materials, but market demand for sustainable tyres is still developing. While tyre manufacturers are ready with the technology, widespread adoption will depend on customer preferences and regulatory support,” he noted.
The regulatory landscape in India is also evolving with sustainability and environmental regulations gaining momentum. “The entire industry must gear up to meet these new challenges. We are prepared for this shift and continue investing in sustainable solutions,” Dahiya stated.
CHALLENGES
Despite the growth potential, the industry faces challenges. “A slowdown in GDP growth is a concern and the adoption of EV-specific tyres is still hindered by infrastructure limitations and high costs. However, as the economy recovers and sustainability regulations take effect, the industry will adapt,” Dahiya asserted.
In response to rising raw material costs, Apollo Tyres is planning to increase tyre prices. “Cost pressures are real and price adjustments are necessary to maintain quality and innovation. However, we are still mulling over the price adjustments.” he said.
As the commercial vehicle segment continues to evolve, Apollo Tyres remains focused on providing innovative solutions that cater to fleet operators’ changing needs while staying ahead in sustainability and smart tyre technology.
- Servis Tyres
- Long March
- Pakistan
- Michelin
- Bridgestone
- Muhammad Ali Mirza
Servis Tyres: Pakistan’s Manufacturing Success Story
- by Sharad Matade
- April 23, 2025
Servis Tyres, Pakistan’s top tyre manufacturer, is expanding globally with a focus on motorcycle, bicycle and agricultural tyres. With a presence in 50+ countries, it drives growth through strategic joint ventures, advanced technology and sustainability. While facing industry challenges, Servis leverages cost advantages and international certifications to stay competitive.
MARKET POSITION AND PRODUCTION CAPACITY
Servis Tyres has established itself as Pakistan’s leading tyre manufacturer and exporter, currently serving more than 50 countries globally. The company strategically specialises in motorcycle, bicycle and agricultural tyres, positioning itself in niche markets rather than competing directly with global giants like Michelin and Bridgestone in the passenger car segment.
“We are producing approximately 1.5 million motorcycle tyres annually, with 75 percent supplying the domestic market and 25 percent for export,” states Muhammad Ali Mirza, Head of International Business at
PAKISTAN’S MANUFACTURING SUCCESS STORY
Servis Tyres, Pakistan’s top tyre manufacturer, is expanding globally with a focus on motorcycle, bicycle and agricultural tyres. With a presence in 50+ countries, it drives growth through strategic joint ventures, advanced technology and sustainability. While facing industry challenges, Servis leverages cost advantages and international certifications to stay competitive.
Servis Tyres. Key export destinations include Brazil, South American markets and North African countries including Egypt, Nigeria, Tunisia and Morocco.
The agricultural tyre segment follows a similar strategy, with exports directed to markets including Brazil, Egypt, Syria, Iraq and Afghanistan, though domestic consumption remains the primary focus for this product line.
STRATEGIC EXPANSION AND JOINT VENTURES
A significant milestone occurred in 2023 when Servis formed a joint venture with China’s Long March to establish Pakistan’s first truck bus radial (TBR) tyre manufacturing facility. This partnership marked a crucial development for Pakistan’s industrial base, bringing advanced technology and increased production capacity.
The ownership structure highlights Servis Group’s ambition and negotiating power. “We are the majority stakeholder at 51 percent, while Long March holds around 45 percent” explains Mirza. “They provide the technology, and we handle production.”
This rapid scaling demonstrates the company’s execution capability. “We started our TBR plant with 800,000 tyres per year in 2023. After one year, we expanded to 1.5 million tyres annually, and by the end of 2025, we will reach 2.4 million tyres per year,” Mirza states. The company has already captured most of Pakistan’s TBR replacement market while establishing export channels to Brazil and South America.
QUALITY STANDARDS AND INTL CERTIFICATION
For a tyre manufacturer with global ambitions, meeting stringent international quality and safety standards is essential. Servis has invested heavily in this area, obtaining certifications including DOT (US Department of Transportation), INMETRO (Brazil), E-marks (Europe) and various ISO certifications (9001, 14001, 17025).
“We have the only laboratory in Pakistan accredited to European standards,” Mirza notes. “We produce our lab reports internally, and they are valid throughout Europe.” This testing infrastructure provides a crucial competitive advantage, allowing the company to validate products for international markets without relying on external verification.
MARKET OPPORTUNITIES AND FUTURE GROWTH
The company has identified Pakistan’s passenger car radial (PCR) tyre segment as its next potential growth area. Currently, no domestic manufacturer fully serves this market, with General Tyre producing only for original equipment manufacturers and replacement needs met primarily through Chinese imports.
“Now we believe the market is large enough to initiate a PCR production facility,” Mirza reveals. “The shifting global trade environment may accelerate this development. Because of increasing tariffs in the US, it’s become very attractive for Chinese manufacturers to broaden their scope for international markets, creating potential partnership opportunities.”
Pakistan’s automobile market is evolving beyond its traditional dominance by Japanese brands (Toyota, Honda and Suzuki). Recent government policy changes have created openings for new entrants including Hyundai, Kia, MG, Haval Motors and Cherry Group, all establishing assembly plants in Pakistan. This diversification creates new opportunities for domestic tyre suppliers.
SUSTAINABILITY INITIATIVES
Servis has implemented several environmental sustainability measures in line with global industry practices. “Approximately 40 percent of our electricity consumption now comes from solar energy,” Mirza states. The company also maintains stringent facility management protocols, with international customers frequently commenting on the cleanliness of their manufacturing facilities compared to industry norms.
INDUSTRY CHALLENGES AND COMPETITIVE LANDSCAPE
Despite its success, Servis faces significant challenges. “The major challenge is that the industry is still considered a commodity business,” Mirza explains, necessitating continuous cost reduction and efficiency improvements. Competition from China and other countries remains intense, with both countries’ manufacturers increasing product quality while maintaining aggressive pricing.
Raw material sourcing presents another challenge, as most natural rubber must be imported. This dependency creates both cost and supply chain vulnerabilities, requiring sophisticated procurement strategies.
The company leverages Pakistan’s competitive advantages to maintain profitability. “The labour cost in Pakistan is the cheapest in the whole region,” Mirza points out. “We benefit from that alongside economies of scale, maximising our internal efficiencies.”
Government support also helps offset some disadvantages through export incentives, subsidised electricity, preferential financing schemes and duty drawbacks on imported raw materials. The government’s attention to the sector reflects its growth potential. “Right now, the tyre business is growing at around a 40 percent aggregate rate for exports,” Mirza notes.
CORPORATE STRUCTURE AND SOCIAL RESPONSIBILITY
Servis Tyres operates within the larger Servis Group, one of Pakistan’s top 15 business conglomerates, with origins in footwear manufacturing. “Tyres contribute approximately 60 percent of the business, with footwear representing 35 percent,” Mirza states. “The group’s financial strength provides crucial advantages. The financing we generate comes primarily from internal sources, with minimal bank investment.”
Beyond business operations, Servis Group maintains strong corporate social responsibility programmes. “We operate hospitals, schools and medical colleges that provide 90 percent free education to deserving students, and hospitalisation also is free for them,” Mirza explains.
Comments (0)
ADD COMMENT