Bengaluru-headquartered engineering and R&D (ER&D) company L&T Technology Services (LTTS) has been working behind the scenes with a wide-variety of industries globally as well as in India; among them the transportation vertical is a key contributor, which also includes the automotive and tyre industry.

The tyre industry, which for long has been seen working silos, is now increasingly embracing digitalisation and external support for accelerated growth.

In an interaction with Tyre Trends, Shailendra Shrivastava, Chief Segment Officer, Mobility at L&T Technology Services, shared, “The integration of research, development, innovation and technology is set to revolutionise the tyre industry, ushering in an era of digital transformation that extends beyond traditional manufacturing.”

He believes that by leveraging digital tools, tyre makers can gather and analyse data from major fleet owners, which enables them to take more informed manufacturing decisions and strategic production planning.

PARTNERSHIPS PLAY A CRUCIAL ROLE

It is no secret that the automotive industry right now is undergoing an evolution, what’s with alternative fuels, digitalisation, artificial intelligence (AI), machine learning (ML), consumer demand or fast-evolving regulatory framework.

LTTS shared that ER&D companies are increasingly playing a pivotal role in the digital transformation of tyre OEMs, both in India and on a global scale. These partnerships are driven by the relentless advancement in technology and competitive market.

It is not just about development of tyres but also overhauling the manufacturing and other processes.

“Engineering firms provide tyre manufacturers with cutting-edge solutions such as smart manufacturing processes, IoT integrations and predictive analytics. These collaborations help tyre OEMs to enhance their operational efficiency, reduce costs and innovate their product offerings. This alliance is not just about keeping pace with industry trends; it’s about setting the trajectory for future innovation and ensuring that tyre companies are well equipped to meet evolving consumer demands and regulatory requirements,” explained Shrivastava.

KEY TRENDS RESHAPING THE TYRE INDUSTRY

In both automotive and non-automotive industries, such as agriculture, construction and material handling, tyres play a crucial role in ensuring efficiency, safety and performance. According to Shrivastava, one of the biggest shifts in the industry is the integration of technology.

He outlined the key trends witnessed:

Smart tyres: Technology integration in tyres is on the rise. Smart tyres equipped with sensors, monitor tyre pressure, temperature and tread wear provide real-time data to enhance safety and performance. Tyre companies are progressively leveraging this data to enhance customer engagement through their proprietary applications.

Electrification: With the growing focus on electric vehicles (EVs) and their increased weight due to batteries, there is a greater emphasis on designing tyres that reduce rolling resistance, minimise road noise and improve driving distance. EV tyres also need to be more durable to withstand wear and tear.

Safety: As safety becomes a priority, there is a demand for tyres with advanced features, including improved wet-condition grip, better braking performance and superior durability.

Sustainability: The demand for sustainable materials and tyres designed to reduce rolling resistance is growing. This trend improves fuel efficiency and reduces carbon emissions.

Customisation: Consumers are showing interest in customisable tyres with unique tread patterns and sidewall designs that allow for personalisation.

Retreading & recycling: The practice of retreading tyres is gaining popularity as a cost-effective and environmentally friendly alternative to complete tyre replacement; this is also particularly significant for commercial fleet operators.

When it comes to demand trends, while there are differences between India customers and other countries, there are trends converging in the tyre industry.

“In India, consumers have traditionally prioritised cost-effectiveness and durability due to challenging road conditions and economic factors. Conversely, in other global markets, emphasis has often been placed on performance, technology integration and environmental sustainability. However, with the rapid globalisation and exposure to international standards, Indian consumers are beginning to demand more sophisticated features. This shift is fostering a convergence of consumer expectations, as companies are now striving to balance affordability with cutting-edge technology and eco-friendly options, creating a more universal demand across various regions,” alluded Shrivastava.

Despite some commonalities, there are some key differences in the markets:

Price sensitivity: Indian consumers tend to be more price-sensitive, leading to a higher demand for budget-friendly tyres.

Durability: Due to challenging road conditions, Indian consumers prioritise durable tyres that can withstand Indian roads and rough terrains.

Replacement market dominance: In India, the replacement tyre market dominates, comprising about 56 percent of total volume, unlike developed markets with balanced demand between OEM and replacement tyres.

Fuel-efficient tyres: While globally there is interest in eco-friendly tyres, this trend is more pronounced in developed markets due to stricter environmental regulations.

Brand loyalty: Brand loyalty is stronger in developed markets. In India, consumers prioritise value for money and are open to trying new brands.

While the differences in the trends remain, as the Indian tyre industry becomes more tech-advanced, we will see more convergence between the developed and emerging markets.

TESTING, DESIGNING & VALIDATION

ER&D companies like LTTS mostly work behind the scenes and most of their work revolve around co-creating Intellectual Property Rights (IPR) with their clients.

The company also provides polymer engineering innovation, wherein it enables enhancement of performance, safety and sustainability with lightweight, durable and recyclable materials.

LTTS supports tyre manufacturers worldwide by leveraging advanced composites, 3D printing and high-performance thermoplastics, which helps clients address environmental concerns and cost challenges, driving smarter, more efficient and sustainable transportation solutions.

“We provide AI/ML-based applications, reverse engineering services, embedded sensor solutions and support for advanced manufacturing. Our expertise spans areas like digital twin technology, 3D scanning and IoT integration.

“LTTS focuses on several critical areas, including AI/ML for efficiency, which optimises tyre development and reducing material wastage. Reverse engineering allows for analysing tread patterns and compositions for improvements. Embedded systems & IoT for enabling smart tyres with real-time monitoring capabilities. Manufacturing support to bring efficiency in tyre production plants. Augmented reality and mobile applications to drive digital transformation in the tyre industry.

“By integrating AI, ML and IoT with traditional engineering, we help raise industry standards while prioritising sustainability and efficiency,” said the executive.

SENSOR-BASED TYRE TECH & EMISSIONS

Smart tyres are no longer a work of fiction but a promising technology that is set to see significant uptick in various segments in the coming years. It’s no secret that tyre makers and even start-ups alike are investing heavily to bring smart tyres that not only indicate the tyre pressure but also various parameters to improve vehicle performance, fuel efficiency and safety.

A report by SNS Insider estimates that the automotive smart tyre market size was valued at USD 90.90 billion in 2023 and expected to grow with a CAGR of 8.60 percent from 2024 to 2032. Through the year 2032, it is likely to reach around USD 206.39 billion, promoted by the expanding applications in terms of several automotive segments.

This will also be due to the emergence of more sensors and connected vehicle technology.

Shrivastava said, “Advanced sensors are revolutionising the tyre industry by offering a higher degree of customisation, fundamentally changing how performance and safety are approached. At the forefront of this transformation is enhanced safety: sensors now monitor tyre pressure, temperature and tread wear in real-time, preventing accidents by alerting drivers to potential issues before they escalate. Furthermore, improved performance is achieved as real-time feedback from these sensors optimises the Anti-lock Braking System (ABS) and traction control, resulting in a smoother driving experience. Predictive maintenance is another benefit, with sensors anticipating maintenance needs, thereby reducing both downtime and costs, which is especially advantageous for commercial fleets. Additionally, from a sustainability perspective, smart technologies support the design of more efficient and longer-lasting tyres, reducing waste and enhancing fuel efficiency.”

Furthermore, electrification and alternative fuels at the forefront for the automotive industry also means tyre makers are expected to further cut down on emissions, especially tyre emissions (particulate matter). This means the industry is looking not only for newer chemistries and eco-friendly materials but also the way tyres are designed, friction and recyclability.

As an ER&D partner for the automotive and tyre industry, LTTS stated that addressing particulate matter emissions and enhancing sustainability requires a comprehensive approach using several key strategies.

Firstly, the use of sustainable materials, such as renewable and bio-based materials like natural rubber and recycled components, becomes essential. Incorporating these materials not only reduces environmental impact but also supports the circular economy. Secondly, designing tyres with reduced rolling resistance improves fuel efficiency and minimises emissions, contributing significantly to sustainability efforts.

“Additionally, advanced manufacturing processes that incorporate energy-efficient production methods and reduce the use of toxic substances are critical in lowering the carbon footprint associated with tyre production. Lastly, the efficient development of tyres through Artificial Intelligence (AI) and Machine Learning (ML) optimises overall development efficiency and resource utilisation, thereby enhancing sustainability on multiple fronts. These strategies collectively form a robust framework for advancing tyre sustainability and mitigating environmental impacts. By focusing on these areas, the tyre industry can make significant strides towards sustainability and reducing its environmental footprint,” concluded an optimistic Shrivastava.

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.