After being selected as ATMA Chairman, Satish Sharma, President (APMEA) & Whole Time Director, Apollo Tyres, has big plans for the automotive and tyre industries, from enhancing exports to self-sufficiency in Indian rubber. He shares his views on collaborations in the tyre industry, the challenges of the sector and the problem of India being used as a dumping ground. Read on…

How have your priorities changed ever since being selected as the ATMA chairman?
I was the ATMA chairman even four years ago, and this is my second tenure. In terms of priorities, I want to pick up from where I left. At that point, we had started this whole journey of improving our exports. In fact, I was on record to say that the tyre industry could be the poster boy for the Indian government.

Looking back, I’m very happy to see that the exports have improved rather well. And this is just the beginning; we could do much more. Therefore, one priority is to see how we enhance our exports significantly from where we stand today.

The second priority is that a lot of regulations are on the anvil for the vehicles and the tyres as well. So my idea would be to engage with all the stakeholders and get them fast paced rather than going about it in a slow manner. Plus, I would like to get all views on board, optimise them for the industry, the government and different stakeholders and get them rolling, working towards a seamless transition for the regulations and betterment of all the stakeholders.

As for my third priority, it is the self-sufficiency point of the Indian rubber. The Indian rubber is a key priority of the commerce minister, Piyush Goyal, to narrow the gap between domestic demand-supply of natural rubber, which is around 35 to 40 percent. Hence, some of us have come together at his behest and have contributed in monetary terms to help the rubber board to do serious plantations in the potential of the North East. That corpus has been formed and one year of it has gone by. The acronym is NEMITRA. It is a collaboration between the tyre industry and the rubber board, under the aegis and direction of the commerce ministry. So we are very hopeful that the work we put in is going to yield results and India will be able to narrow this deficit between production and consumption.

Speaking of production and consumption, are you seeing a revival in demand?
The demand recovery for tyres is always an organically growing demand. If you look at the GDP of the country, it’s rather sectoral and a K-shaped recovery. Therefore, some sectors associated with infrastructure, e-commerce or the real estate sector, etc. are doing very well. However, at the same time, there is very steep inflation, and there is a possibility or worry that this inflation might destroy demand. The entire supply chain has to pass through this inflation and, finally, it has to be borne by the consumer. Whether the consumer reduces consumption or continues to consume at the rate at which he/she was before is a bit of a worry. But so far, the demand is holding on at a broader level.

OEMs are reviving as the chip shortage is getting under control. We are seeing CVs – a cyclical business – at the beginning of its upcycle, which is good news for them. In PVs, the supply chain issues are getting eased off. Plus, the tractor sector is also reviving; with a good monsoon forecast, the rural economy should come back – maybe not to the same level from two years ago, but still reasonably good.

With the current world situation, from the Covid pandemic to the Russia-Ukraine war to high inflation rates, do you think there is a need for more collaborations between tyre companies?
Collaborations have to be there, but they have to be very finely defined. Collaborations can always be on larger subjects like sustainability or raw materials, where research work can be done, resulting in collaboration. So these are areas where a deeper collaboration will help the industry. But it cannot be used to tackle inflation – that has to be left to market forces.

What are the present challenges you see in the tyre industry that need to be addressed?
The organic challenges include preparing ourselves for electrification and the changing regulatory framework. However, the key challenge for the Indian tyre industry right now is inflation. Our balance sheet sizes have halved over the last year. Moreover, the profitability has reduced significantly. There is a significant phase lag to the cost push. Therefore, these key challenges are what we really need to take care of in the short-term.

There has been a ban on Chinese tyres. How is this impacting the Indian tyre industry?
All global tyre companies that have come in India are now producing their tyres in the country. And therefore, it is self-sufficient as far as tyres are concerned. So technically, imports are not required to that extent, from that point of view.

The problem comes about when we are used as a dumping ground and the economic value of everything that has been put into place gets destroyed. And moreover, the promise we have for the Indian industry is getting short-changed. So that’s the argument.

I was telling my industry colleague, whose company is entering the US market, to not go the wrong way. But, in fact, to go, set up and position the Indian product and brand name the right way and to not spoil the market and get branded as the next cheap manufacturer after China. Because if one does it that way, then he/she is going to spoil it for everyone.

And, truth is, we can really do it the right way. We do have a cost arbitrage. Hence, we can give a more honest price internationally and give tier 1 quality at a tier 2 price. However, if one were to position oneself at the bottom of the barrel, then it will spoil everything.

What is happening to recycling and renewable sources to make tyres? How are things shaping up in India?
One regulation is on the anvil, which is the extended producer responsibility. It is in the draft stage and we are in discussion with the government. Fortunately, by the nature of our country, there is a self-recyclability of any and all products. Of course, this is in the unorganised segment, and we don’t talk or hear about it. But we have seen tyres being sold to make something as useful as slippers. So it finds its own value.

But there are no satellite pictures available in India showing dumps and dumps of used tyres lying anywhere; you will find that in the Middle East. But the government is organising this whole thing, and we have the extended producer responsibility coming – it will have a far higher recyclability and will focus more on renewable energy and getting green raw materials. Plus, it will prioritise the increase in the usage of recycled tyre parts.   

Comments (0)

ADD COMMENT

Link Copied!

Michelin Connected Fleet North America has named Willem Moore as its new Chief Executive Officer. Having been with the parent company since 2019, Moore brings considerable leadership expertise from the technology and mobility sectors. In his new role, he will steer the company's mission to provide advanced fleet management solutions that enhance customer efficiency, safety and sustainability.

“Willem brings an extensive leadership experience in the technology and mobility arenas and will guide our mission to deliver innovative fleet management solutions that drive efficiency, safety and sustainability for our customers. His leadership will help us accelerate innovation while continuing to put our people, customers and partners at the centre of everything we do,” expressed the company.

Moore said, “At Michelin Connected Fleet, we help fleet customers unlock the power of data to accelerate their transformation. Thanks to connected technologies, real-time insights and personalised support. Because we go beyond tools by partnering with our customers. Our end-to-end approach combines smart hardware, advanced analytics and the strength of Michelin’s 130+ years of innovation and trust. I’m honoured to lead such a talented and passionate team across North America and to continue building strong, trusted relationships with our customers and partners. Together, let’s keep moving mobility forward!”

Comments (0)

ADD COMMENT

Link Copied!

Indian tyre manufacturer Tolins Tyres Ltd launched heavy-duty tractor rear tyres, completing its agricultural tyre portfolio as the company seeks to capitalise on India’s farming sector ahead of the harvest season.

The Kerala-based firm, which already produces tractor-trailer tyres, front tyres and tiller tyres, said the new product would enable it to offer farmers a complete tyre solution for tractors whilst opening fresh revenue streams in the agricultural market.

India’s agriculture sector, which employs nearly half the country’s workforce, is preparing for the upcoming harvest season that typically begins in late September. Tractor sales have remained robust in recent months as farmers invest in mechanisation to boost productivity.

Tolins plans to distribute the new rear tyres through its network of more than 1,200 dealers across India, ensuring availability during the critical farming period.

"The launch of our tractor rear tyres is a significant milestone as it completes our tractor tyre range, enabling us to serve farmers with a comprehensive solution," said Dr KV Tolin, promoter, chairman and managing director of Tolins Tyres.

"Agriculture remains at the heart of India's economy, and we are committed to supporting farmers with durable, high-performance products that enhance efficiency and reliability in the field. Backed by our strong dealer network of over 1,200 partners, this new offering will not only support farmers during the upcoming harvest season but also strengthen Tolins' position in the agricultural segment whilst opening new avenues of growth for the company."

The company said the timing of the launch would allow farmers to prepare their machinery ahead of the 2025 harvest season.

Comments (0)

ADD COMMENT

Link Copied!

In the tyre industry, it is very difficult to change a supplier. Once you are a good vendor for the tyre companies, it is very difficult to dislodge the vendor unless they have something really bad. However, post the recent pandemic in 2020, there has been a sea change in the mindset of the tyre companies.   

For a new vendor to enter into the mindset of a tyre purchase head, you have to go head over heels to promote your product and have various tests conducted. However, it still is a long and painstaking process, which could take years just to know that you have not been approved. The importance of getting the right raw material is very important because if the compound is not right, then there is a good chance that the tyre could fail and could lead to a very big lawsuit, especially If a consumer has had a near death experience. So the tyre company has to be 100 percent sure that the new raw material is much better, safer, durable and sustainable.

In the pre-Covid era, you could see that well-established suppliers who have been in the market for decades would not consider participating in an industry event as they did not feel the need because they felt they were well established in the market.

However, after Covid, many companies, especially the vendors, struggled to supply the raw materials to tyre companies due to various issues such as plant shutdown due to labour shortage due to Covid regulations, logistics issues such as lack of truck drivers and less availability of containers, political issues with certain countries, ongoing wars and disputes between countries etc.

So the tyre company purchase heads were compelled to look at other alternative suppliers. If you see the current situation, various tyre companies across the world are under stress as the plants in certain countries are not being viable to run due to various reasons. So they got to be mindful of their purchase of raw materials.

Many tyre companies have also vowed to go the sustainable route by having more ecofriendly materials. So the raw materials companies, whether new entrants or well-established players, have to keep working on innovative products that are sustainable as well as price-competitive.

Tyre companies and their suppliers participating in various forums, such as the recently concluded Tyre Materials Conference in Delhi on 24 June, is encouraging as it provides a platform for the tyre/retread companies to interact with their vendors to understand the changing requirements of tyre companies coming out with new solutions to have a better, safer and sustainable tyre out in the market. n

Comments (0)

ADD COMMENT

Link Copied!

BKT Europe has strategically reinforced its leadership team with three senior appointments, a move designed to significantly accelerate its expansion as a supplier to original equipment manufacturers (OEMs). This restructuring is a pivotal element of the company’s broader ambition to become a leading global player in the off-highway tyre market.

The new appointments target BKT’s key business segments to deepen expertise and foster stronger partner relationships. Paolo Mantovani has been named Head OEM Industrial & OTR Europe, a role that leverages his fifteen years of extensive commercial and strategic experience across multiple tyre sectors. His profound understanding of OEM requirements is expected to be central to driving growth in the industrial and off-the-road tyre divisions across BKT's essential European markets.

Leading the agricultural sector will be Silvia Busnelli in her promoted role as Head OEM Agriculture Europe. Recognised as a driving force behind the development of the existing OE channel, Busnelli brings a powerful combination of deep product knowledge and trusted relationships with manufacturing partners. Her advancement underscores a strategic commitment to placing seasoned experts in charge of pivotal growth areas.

Further strengthening the technical front, Melodie Dubreuil joins the organisation as OEM Technical Manager EMEA. Her six years of industry experience, including a key tenure at CNH Europe, will be vital for enhancing technical collaboration with OEM partners. She will ensure that BKT’s product solutions continue to align with the evolving demands for performance and innovation.

This consolidated leadership structure positions BKT for substantial growth across its agricultural, industrial and OTR businesses. By placing a renewed focus on expert collaboration and market-specific strategies, the company is building a robust foundation for achieving the sustainable and profitable growth targets outlined in its strategic plan for 2030.

Ludovic Revel, President Global OEM at BKT, said, “This decision reflects our bold commitment to scaling our OE business worldwide, with Europe being a critical part of that journey. Paolo’s arrival enhances our ability to engage with OEMs at the highest level and deliver long-term value through performance, partnership and innovation. We are building a team capable of transforming our strong ambitions into reality at a global level.”

Comments (0)

ADD COMMENT

Link Copied!