India’s tyre industry is bracing for a tough fiscal year, weighed down by sluggish demand, volatile raw material prices and muted export growth. Revenue is forecast to expand just 7-8 percent – supported by modest price hikes and a marginal rise in volumes – marking a second straight year of single-digit growth. However, operating margins are set to contract sharply as natural rubber prices remain elevated despite recent moderation. In a wide-ranging discussion, Anuj Sethi, Senior Director at CRISIL Ratings, unpacks the factors shaping the sector, from price pressures and replacement demand to global headwinds and evolving trade dynamics.

How would you characterise the current fiscal year for the Indian tyre industry, considering its challenges and opportunities?

With volume expected to grow just by about 3-4 percent due to sluggish demand, overall revenue growth will remain in single digit for the second straight year, this fiscal. On the other hand, high raw material prices, especially of natural rubber, rose sharply over the past 12 months and have only recently begun to moderate. To a moderate extent, tyre manufacturers are increasing tyre prices in the replacement market to offset the impact of higher input prices, albeit operating profitability will still be impacted this fiscal.

The report mentions 7-8 percent revenue growth this fiscal year, supported by a 3-4 percent increase in realisations and volume. What specific factors could push growth beyond this forecast, and what risks might undercut it?

While realisation growth due to price hikes being undertaken by tyre manufacturers is a certain given sharp increase in natural rubber prices, higher than projected volume growth could take the growth higher than expected. With about 2/3rd of the domestic demand

coming from replacement segment, and it being the primary volume driver, any significant decline in that demand can impact the growth forecast other way.

Given that replacement demand is the primary volume driver, how do you assess the longevity of this demand surge in the context of evolving consumer preferences and vehicle usage patterns?

The replacement demand is expected to sustain over the medium term driven by the strong automotive sales achieved in previous fiscals.

With operating profitability projected to drop 300 basis points, what contingency measures are tyre makers considering beyond gradual price increases to mitigate this impact?

The price of natural rubber, which constitutes about half of the raw materials, continued to surge sharply in the first half of fiscal 2025. However, ability to pass on this increase is limited due to modest volume growth. Small price hikes and continued focus at improving operating efficiencies on an ongoing basis is another way to offset the impact to some extent.

Natural rubber prices have been highly volatile, reaching record highs and then falling to around INR 170 per kg. What is your outlook for natural rubber prices in the near to medium term, and what factors will likely influence their movement?

The sharp rise in natural rubber prices is due to a global shortage caused by inclement weather in major producing countries such as Thailand and Vietnam, which account for about half of the global production. Going forward, increase in supply with improving hectarage and slowdown in global economies is likely to drive correction in international rubber prices. In the last couple of months, some moderation in natural rubber prices has happened.

China has a surplus in crude oil-derived raw materials, including carbon black and other chemicals. Do you anticipate this surplus impacting global prices for these commodities, and how might Indian tyre makers benefit or face challenges as a result?

Share of natural rubber in tyre manufacturing is 47 percent, while carbon black accounts for ~20-22 percent. Should carbon black prices remain under control, it will benefit domestic tyre manufacturers.

Export growth is expected to remain muted at 2-3 percent. How does the current geopolitical climate, including sanctions or trade restrictions, further complicate Indian tyre makers’ access to markets in North America and Europe?

Export growth is expected to remain sluggish due to challenging business conditions in US and Europe. However, certain segments like off-the-road tyres are beginning to see better prospects as stocks with dealers are moderating. This could help players with presence in the off-the road- tyre segment.

Exports to key markets such as North America and Europe are under pressure due to economic challenges and unviable operating costs, leading to plant shutdowns in regions like US, Europe and Israel. Is the Indian tyre industry at risk of facing similar challenges, or does it have structural advantages that mitigate these risks?

Indian players are better placed compared to some of the western peers due to comparatively lower cost of operations, though operating profitability has come under pressure this fiscal because of higher imported rubber prices. Also, Indian players have flexibility to supply in small batch sizes unlike Chinese peers, and hence this also works to their advantage, more prominently in higher margin segments such as off-the road tyres.

Have tyre makers explored new international markets or alternative trade routes to counter supply chain disruptions and higher freight costs?

Not really; to circumvent the difficult environment around the Suez Canal, vessels are going around the Cape of Good Hope, adding 2-3 weeks and additional freight cost on exports. Some of the costs are being shared with the customers.

The report references Extended Producer Responsibility (EPR) regulations. How significant is the financial and operational burden of compliance for tyre makers, and what progress has been made in addressing this?

Adoption of EPR regulations is not expected to have a very sizeable impact on profitability, though it will lead to investments in strengthening processes and in technology.

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MAXAM Tire has named Chris Rhoades as its new Zone Sales Director for the Northern region, a move that underscores the company’s dedication to expanding its footprint and enhancing customer service within the speciality tyre aftermarket. The appointment reflects a broader strategy to strengthen leadership and competitive positioning in the sector.

Rhoades brings over 25 years of international industry experience and a well-established reputation as a leading voice in the tyre business. His leadership credentials include being elected to two separate terms on the Tire Industry Association Board of Directors. Most recently at BKT Tires, he managed strategic growth in complex and highly technical off the road markets, where he aligned regional execution with global strategy, led cross functional teams and consistently delivered measurable revenue increases.

In his new capacity, Rhoades will direct all sales operations across the Northern region, collaborating closely with customers and partners to ensure performance, service and support remain synonymous with the MAXAM Tire brand. His appointment signals a focused effort to drive results through experienced leadership and deep market knowledge.

Jimmy McDonnell, Vice President – Sales and Marketing, MAXAM Tire, said, “We are excited to welcome Chris to the MAXAM team. Chris brings deep industry knowledge, proven leadership and a strong customer-first mindset that will create immediate value for our partners. His experience and vision will play an important role as we continue to grow our presence, strengthen relationships and expend the MAXAM brand across the market.”

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Bekaert’s Board of Directors has announced the appointment of Olivier Biebuyck as the company’s next Chief Executive Officer, effective 1 June 2026. He brings extensive expertise in leading, expanding and transforming global industrial enterprises through both organic growth and acquisitions, positioning him to drive Bekaert’s future strategic goals.

On that same date, the board will co-opt Biebuyck as a director. Meanwhile, current CEO and board member Yves Kerstens will conclude his mandate on 31 May 2026, having led the company in recent years. He will also step down from his directorship as of that day.

The leadership transition marks a carefully planned succession, with Biebuyck’s track record seen as critical to advancing Bekaert’s long-term ambitions. The changes take effect at the end of May and start of June 2026.

Jürgen Tinggren, Chairman of the Board of Directors, said, “I am proud to announce the appointment of Olivier Biebuyck as CEO of Bekaert. The Board is convinced that he is the right person to lead the transformation of the company in its next chapter. On behalf of the Board and the entire Bekaert team, I would like to express our sincere appreciation to Yves for his leadership, commitment and contribution to the company over the past years, and wish him the very best.”

Biebuyck said, “Bekaert has an impressive history of innovation, business expansion and evolution. I am honoured to take up the role of CEO at Bekaert. I look forward to working closely with the Board, the leadership team and all colleagues around the world to further transform and grow the company and create long term value for all our stakeholders.”

Kerstens said, “It has been a privilege to serve as CEO of Bekaert and to work alongside our colleagues around the world during the past years. I am proud of what we have achieved together and wish Olivier all the best to lead the company in building a strong future.”

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Sri Lanka-based GRI Tires has extended its limited warranty coverage for pneumatic tyres to up to 10 years, effective from 2026, as the specialty tyre manufacturer seeks to strengthen customer assurance across its agricultural, construction and material handling businesses.

The revised warranty policy applies to all GRI-branded pneumatic tyres manufactured on or after January 1, 2025, and covers customers in more than 80 countries. The company previously offered warranty coverage of up to seven years.

Under the updated policy, agricultural radial tyres will be covered for up to 10 years, while agricultural bias tyres will receive coverage of up to eight years. Construction, earthmover, industrial, material handling, port and mining tyres will be covered for up to five years, subject to terms and conditions.

GRI said warranty protection would cover qualifying defects, with credit issued on a pro-rated basis.

For qualifying failures occurring within the first three years, and where radial tyre wear does not exceed 20 per cent, customers will receive a full replacement credit.

The warranty applies exclusively to the original end-use purchaser.

“This enhanced 10-year warranty is more than a policy update — it is a statement of our conviction in the quality of every tire we manufacture,” said Barry Guildford, global commercial director at GRI.

“We build tires to perform in the most demanding conditions, and we stand behind them.”

Customers can submit warranty claims through authorised GRI dealers and distributors, or directly through the company’s customer support channels.

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Georg Nordmann Holding Aktiengesellschaft (GNH) has appointed Martin Rathke as Managing Director of its subsidiary Nordmann (Nordmann, Rassmann GmbH), effective 1 May 2026. The move marks a strategic step in the company’s ongoing leadership development.

Rathke joins with considerable leadership experience and deep knowledge of international sales and distribution within the chemical distribution sector. His career includes years of service in a family-owned enterprise, where he held senior management roles with global responsibility. He will now share leadership duties with Ulrich Cramer, who remains in his position, and together they aim to form a closely aligned team to advance Nordmann’s strategic direction.

The joint leadership will focus on accelerating global expansion through targeted strategic, organic and inorganic growth while optimising existing operations and continuously refining the company’s portfolio strategy. Backed by the commitment of its shareholders, Nordmann seeks to strengthen its international presence and evolve into a global player in the chemical distribution industry.

Irina Zschaler, CEO of Georg Nordmann Holding Aktiengesellschaft, said, “Martin brings exactly the combination of entrepreneurial mindset, international experience and leadership strength that we value in our relationships and for our path to grow. Our collaboration is based on responsibility, integrity and the aspiration to create added value together for all involved and the entire group. We are therefore very much looking forward to welcoming our full Nordmann team.”

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