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.

With a series of new product launches aimed at meeting diverse needs, CEAT aims to target new set of customers who are looking beyond just cost.

Mumbai-based RPG Group’s flagship company CEAT, one of India’s most recognisable tyre brands, is at the cusp of a transformation. From being known for durability and value-for-money tyres, the company is repositioning itself as a technology and sustainability leader – offering products that don’t just meet performance benchmarks but also embody environmental responsibility.

The company recently launched SecuraDrive CIRCL, a limited-edition road-ready tyre with up to 90 percent sustainable materials. This feat makes the company one of the few global players to have introduced sustainable tyre that is just not a concept but a ground reality.

For CEAT, the immediate priority is to educate consumers about sustainable tyres. With the launch of the SecuraDrive CIRCL, available in limited numbers (264 tyres), it is taking a deliberate step to spark conversations around eco-conscious choices.

Lakshmi Narayanan B, Chief Marketing Officer, CEAT Tyres, told Tyre Trends, “The first piece is customers becoming aware. This isn’t just a conceptual product – it absolutely matches the performance of a conventional tyre. The idea is to give consumers a clear-cut option and an opportunity to buy into the philosophy of sustainability.”

The company has introduced two variants for the CIRCL range – Circle 50 (50 percent sustainable content) and Circle 90 (90 percent sustainable content). The limited-edition approach, according to CEAT, is intentional. “We want consumers to make a conscious choice to understand the value of sustainability in a product they use daily,” he added.

The focus, then, is not only on selling a product but on creating a new mindset. As Lakshmi Narayanan B put it: “This is as much a product story as it is a brand story. We want consumers buying into it for the right reasons.”

FROM CONCEPT TO MANUFACTURING REALITY

While many companies experiment with prototypes or pilot runs, CEAT insists that its CIRCL tyres are not small-scale experiments. Instead, they are proof of manufacturing readiness at scale.

“When you can make 264 tyres using 90 percent sustainable content, you have the capability to scale it up to any number,” said Lakshmi Narayanan B, pointing to the three years of dedicated work on CIRCL within CEAT’s broader five-year innovation journey. “This is not a pilot run – it’s literally scale manufacturing. What you see today is the outcome of years of work,” shared Lakshmi Narayanan B.

The company has also leveraged its past innovations – such as run-flat tyres and CALM technology – to strengthen manufacturing processes. “Each innovation adds capability. Whether it is sourcing sustainable materials or manufacturing in a new way, we’re now confident of handling such things at scale,” he explained.

For CEAT, scale is not just about numbers but about readiness. “We have proven that sustainability and performance can co-exist. And when consumer interest builds, we are absolutely ready to scale this into mainstream adoption,” Lakshmi Narayanan B added.

EMBEDDING SUSTAINABILITY ACROSS VALUE CHAIN

The tyre major recognises that sustainability cannot be restricted to a single product line – it must cut across the entire value chain. Renji Issac, Senior Vice President – R&D and Technology, CEAT Tyres, pointed out that CIRCL is only the beginning. “All the learnings from this programme will flow into circular product development, extended producer responsibility (EPR) and end-of-life tyre management. Sustainability doesn’t stop at manufacturing – it extends to what happens after the product’s lifecycle,” said Issac.

This approach also means working closely with suppliers, including MSMEs and startups, to adopt new processes and materials. “Initially there was resistance; why should they change (suppliers)? But over time, they have seen the opportunity. Today, our entire supplier ecosystem is committing to our sustainability goals. It’s a challenge but also a transformation,” averred Lakshmi Narayanan B.

Issac added that part of CEAT’s role has been to handhold startups developing new materials, helping them scale their innovations into market-ready solutions. “Some of these materials come from startups, and it’s not just about us developing the product. We are helping them bring their products to market,” he explained.

This ecosystem development is crucial because CEAT believes that innovation is only as strong as its supply chain. “It’s not only about what we make in-house but how the entire chain contributes to sustainability,” said Lakshmi Narayanan B.

A STRUCTURED FIVE-YEAR ROADMAP

Looking ahead, CEAT is guided by a five-year roadmap that balances near-term launches with long-term capability building.

Issac explained that CEAT has developed “a very firm two-year plan on products that will hit the market. Beyond that, the next three years are about developing enabling technologies. For every product roadmap, there’s also a technology roadmap and a capability roadmap. This ensures we’re not just reacting to the market but anticipating it.”

This structured approach allows CEAT to introduce innovations faster while preparing for regulatory and consumer shifts globally.

Lakshmi Narayanan B stressed that the company wants to stay ahead of the curve. “Our intent is to be proactive, not reactive. Whether it’s a current trend or a future wave, we want to be in the right place at the right time,” he said.

The roadmap is part of CEAT’s larger R&D strategy, which has already delivered multiple first-to-market products in recent times. “Run-flat tyres, 21-inch ZR rated tyres, CALM technology and now the sustainable tyre – all of these are stepping stones in our long-term direction,” Lakshmi Narayanan B explained.

GLOBAL RELEVANCE WITH INDIAN CONSUMER FOCUS

Although CEAT operates in global markets, the company deliberately chose India as the first market for CIRCL. The rationale is clear: while European demand is often regulation-led, CEAT sees India as a consumer-driven opportunity.

“In Europe, sustainability is often about regulation. In India, we want it to be a conscious consumer choice. That’s why we launched here first – we know Indian consumers are asking these questions, especially EV owners and younger buyers. It’s an early adopter segment, but it will grow,” shared Lakshmi Narayanan B.

The CIRCL tyres will initially be available in 8–10 metros, targeting discerning consumers with compact SUVs and EVs. The company acknowledges that the products come at a premium but insists the value proposition lies in sustainability with uncompromised performance. “The promise is clear: sustainability and performance equal to any conventional tyre,” Lakshmi Narayanan B emphasised.

Looking forward, the company believes the CIRCL project positions it strongly for future regulatory shifts worldwide. “With capabilities like this, we can leapfrog in global markets when the time comes,” Lakshmi Narayanan B noted.

From CIRCL’s limited-edition launch to a broader five-year innovation pipeline, CEAT’s future focus revolves around three pillars:

1. Consumer-first sustainability – creating awareness and demand among discerning buyers, particularly EV owners.

2. Ecosystem transformation – enabling suppliers, startups and partners to align with CEAT’s sustainability vision.

3. Structured innovation roadmap – delivering near-term product launches while building long-term capabilities.

As Issac summed it up: “A sustainable tyre is also a low rolling resistance tyre. There’s no conflict between sustainability and performance. In fact, they move in the same direction.”

“It’s a long game, but we’re happy to take the first step. Future is always bright,” concluded Lakshmi Narayanan B.

The US Tire Manufacturers Association (USTMA) expects total US tyre shipments to reach 337.4 million units in 2025, marginally above the previous record of 337.3 million units set in 2024 and up from 332.7 million units in 2019.

The association noted that the forecast was prepared without August and September trade data, which were delayed by the US government shutdown. It said this may result in higher-than-usual estimation errors for replacement tyre shipments.

Original-equipment shipments of passenger, light truck and truck tyres are projected to fall by 3.5 percent, 3.7 per cent and 18.1 percent respectively in 2025, a combined decrease of 2.8 million units compared with 2024.

Replacement shipments are expected to remain flat for passenger tyres, rise by 2.9 per cent for light truck tyres and increase by 7.9 percent for truck tyres. Total replacement shipments are forecast to grow by 3.0 million units.

Trelleborg Tires has been named “Best Agriculture Tire” at the 22nd Visão Agro Brazil Awards, held in Ribeirão Preto, São Paulo, on 4 December. The award recognises the company’s focus on technological development and its contribution to sustainable growth in Brazil’s agricultural sector.

The trophy was accepted by Fábio Metidieri, Agri Sales Director at Yokohama TWS Brasil. Metidieri said the accolade strengthened the company’s commitment to Brazilian farming and reinforced the value of its investment in product innovation, field validation and local expertise.

Trelleborg is expanding the use of its ProgressiveTraction technology across its TM range, from the TM600 for row-crop applications to the TM1000 for high-horsepower tractors. The design employs a dual-edge lug intended to improve traction, self-cleaning and vibration levels, supporting efficiency, tyre longevity and soil protection.

“Receiving this award at such a prestigious event once again reinforces our commitment to Brazilian agriculture,” Metidieri said. “Our goal is to keep advancing in technology and field performance, ensuring that every Trelleborg tire delivers real value — helping farmers operate more efficiently, sustainably, and profitably.”

The company maintains a local technical team, conducts extensive field testing and works with well-established OEM partners in major farming regions. This proximity, Metidieri said, helps ensure that tyre development reflects the practical demands of Brazilian agriculture. “This award reflects the trust placed in our team and our products by professionals throughout the sector. It strengthens our commitment to delivering technologies that address local challenges and help shape the future of Brazilian farming.”

The Visão Agro Brazil Awards recognise suppliers and innovators across the national agribusiness sector. A jury of executives, researchers and decision-makers assess companies on innovation, sustainability and performance.

JK Tyre & Industries has showcased a broad range of products across its truck and bus radial, passenger car radial and two- and three-wheeler segments at Automechanika Dubai 2025, as the Indian manufacturer seeks to deepen its presence in the Middle East and Africa.

The event, held from 9–11 December at the Dubai World Trade Centre, is the largest automotive aftermarket exhibition in the region and marks JK Tyre’s 11th consecutive participation. The company positioned the MEA region as a key driver of its international expansion, citing ongoing infrastructure activity and economic growth as supportive of future demand in the commercial tyre segment.

Dr Arun Kumar Bajoria, Director and President (International) at JK Tyre & Industries, said: “Automechanika provides an excellent platform to meet all our customers under one roof and gain insights into their needs and evolving market demands. We have displayed products from our flagship brands—JK Tyre and Vikrant—along with offerings from our associate company, Valiant. We remain fully committed to serving our customers across the MENA and GCC regions.”

Alongside its regional portfolio, the company unveiled a new range of passenger car and van tyres for Europe, covering summer, winter and all-season use. It also presented its Treel smart solutions, including PCR tyres with embedded sensors, as part of its focus on innovation and sustainability.