In the global tyre market, Japanese company Kinto Tyres is gradually establishing its global presence through a strategic blend of Japanese engineering know-how and low-cost manufacturing facility in Thailand. Tyre Trends interviewed Melvin Ho Mun Hoong, International Sales Manager of Kinto Tyres, to learn about the company’s strategy and expansion plans.

JAPANESE HERITAGE, STRATEGIC MANUFACTURING

“Kinto represents the Japanese commitment to technology and innovation,” explained Melvin Ho Mun Hoong, International Sales Manager of Kinto Tyres, during his interview at the TyreXpo Singapore 2025, the company’s second appearance at this regional trade show. “Japanese tyre technology has long been recognised for superior quality. Our founders wanted to deliver this level of performance at more accessible price points.”

Kinto comes into the business of premium tyre manufacturing alongside other major Japanese tyre brands, although with a differentiated approach to manufacture and market. Although Japanese, the company based its main plant in Thailand, not Japan, in 2022.

“Even in our home market of Japan, competition from national brands is exceptionally strong due to established consumer loyalty,” Ho noted. “The competitive environment led us to establish manufacturing operations in Thailand while maintaining our R&D capabilities and headquarters in Japan.”

This strategic move has enabled Kinto to manage production expenses while maintaining engineering quality typical of Japanese tyre production. The factory in Thailand is the company’s manufacturing centre that facilitates export activities to over a dozen countries, with major markets in Southeast Asia being the Philippines, Cambodia, Myanmar and Malaysia. The company also has established market presence in Egypt, Hong Kong and China.

“Malaysia is now one of our most resilient markets,” Ho said. “Our products have picked up very well there, proving the success of our strategy to bring Japanese technology at more affordable price points.”

DIVERSIFIED PRODUCT RANGE

Kinto’s existing product portfolio includes passenger car radials (PCR), truck and bus radials (TBR), agricultural tyres and all-terrain products. Each segment meets Japanese engineering standards but is produced at the company’s Thailand plant.

When asked about potential expansion into motorcycle tyres, Ho indicated interest but suggested a more collaborative approach might be appropriate for that specialised segment. “For motorcycle tyres, particularly in markets like Vietnam where usage is extensive, we’re considering partnership opportunities with established producers. We would provide the technology while they handle the production aspects,” Ho explained.

This practical diversification strategy mirrors Kinto’s overall corporate plan of focused growth in markets in which they are able to maintain competitive edge via their Japanese engineering heritage.

MARKET DIFFERENTIATOR VIA QUALITY ASSURANCE

One of the pillars of Kinto’s market strategy is its warranty programme, which Ho labels as ‘100 days Unconditional Warranty’. This all-encompassing system of quality assurance has proven as a unique selling point for distributors and retailers.

“We provide this special warranty to ensure our distribution partners can sell with confidence,” Ho explained. “It offers a one-to-one exchange for road hazard damage beyond repair. Customers can claim without extensive questioning, provided the damage isn’t from deliberate abuse, vehicle mechanical failure, and improper car maintenance or normal tread wear.”

As explained by Ho, this warranty programme has helped build the company’s reputation for reliability, with the firm enjoying ‘very low claim rates’ in its markets. The policy demonstrates Kinto’s faith in the quality of its products, as well as in confronting prospective concerns over a fairly new brand in certain markets.

MARKET CHALLENGES AND COMPETITIVE DYNAMICS

When referring to recent market issues, Ho cited growing price competition from Chinese producers as a main influencing factor in the global tyre sector: “Chinese prices are becoming more aggressive because of domestic competition. They are giving extremely competitive prices to use their capacity.”

This pressure on prices has built a more difficult scenario for all tyre makers, pressuring Kinto to be highly efficient in production in order to stay competitive and meet the expected standard of quality demanded of a Japanese-designed product.

“We’re not positioning ourselves as the lowest-priced option,” Ho clarified. “We’re offering Japanese engineering standards at reasonable prices. Our development costs remain manageable because we’re operating in a mature technical environment, focusing on optimising formulations to meet specific market requirements.”

Unlike certain makers that diversify to contract manufacturing for purposes of facility maximisation utilisation, Kinto stays single-focused. “We are focusing only on our own brand development and distribution. We have no intentions of making for other companies,” Ho said emphatically.

STRATEGIC EXPANSION PLANS

Kinto’s global expansion plan focuses on a number of priority markets for short-term development. Ho named the United States, Latin America, the Middle East and Oceania as the top markets of interest, with the company actively pursuing distribution partners in these markets.

“For South Asia – India, Bangladesh and Pakistan in particular – we’re exploring potential distribution partners now,” he said. “We’ve set up in Sri Lanka, which is our first beachhead into that region.”

Even with its emphasis on overseas expansion, Kinto has not neglected its domestic market. “We still have plans to build a stronger presence in Japan, probably in the near future,” Ho disclosed. “We’ve had many enquiries from Japanese buyers looking for cheaper alternatives to high-end national brands, where prices are much higher.”

This prospective re-entry into Japan’s market would be a milestone in the development of the company, finally completing its value proposition of Japanese engineering for competitive prices in a full circle to where it originated.

MANUFACTURING EFFICIENCY AND PRODUCT DEVELOPMENT

Although Ho would not give precise production capacity details for the Thai plant, he stressed the focus of the company on manufacturing efficiency. “We’ve put in advanced production technology to provide consistent quality at the right cost,” he said.

Product development is still based in Japan, where the engineering staff of the company develops formulation improvements for various markets and uses. “Our technical development process takes into account specific regional conditions,” Ho said. “Road conditions, climatic conditions and usage patterns typical to the region all influence our product specifications.”

This balance between centralised development and regional adaptation allows Kinto to have core engineering standards while meeting the unique needs of various international markets.

DISTRIBUTION STRATEGY AND PARTNER CHOICE

While Kinto goes on expanding, Ho underlined the significance of choosing the right distribution partners for each market: “We’re looking for distributors who comprehend our value proposition and can effectively articulate it to retailers and consumers.”

The company gives extensive support, such as marketing material, technical training and warranty administration systems, to distribution partners. This holistic strategy is intended to provide uniform brand representation in varied markets.

“Our goal is to create long-term relationships with distributors who, like us, are dedicated to quality and customer satisfaction,” Ho said. “The correct partnerships are essential to our long-term success.”

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

Q1 Performance Overview

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

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

Resilience in Domestic and Export Markets

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

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

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

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

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

Capacity expansion

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

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

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

Market Outlook

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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