In Europe’s fragmented but fiercely profitable tyre market, success is hard-won and short-lived. The continent offers scale, premium pricing and OEM proximity, but it also throws up formidable barriers in the form of legal complexity, consumer conservatism and entrenched legacy players. While many Asian tyre makers continue to struggle for relevance, international Sailun Group has quietly rewritten that script. Combining academic roots, machinery expertise and agile ownership, it has grown into a global force. Now, with rising brand visibility, the company is challenging old assumptions.    

Every tyre manufacturer from any nook and cranny of the world wants a piece of the European tyre market. The obvious reasons include higher profitability, consumer spending capacity and the lot. However, it’s easier said than done for entering such a varied and high-profile tyre economy.  Tyre manufactures from many Asian countries continue the struggle to penetrate the European tyre scene. And some have been steadfast and persistent enough to have finally commenced operations running in the continent.

International tyre major Sailun Group is one such company that has its presence in the European market for the over a decade. Tyre Trends caught up with Sailun Tyre Europe’s Director of Marketing, Stephan Cimbal, at a recent expo.

He noted that the European market is one of the largest and arguably the most complex tyre markets in the world. It’s not a single market but rather 40 individual ones, each with its own language, regulations and consumer behaviour. 

“Despite its fragmentation, Europe remains one of the most profitable regions thanks to its high price levels and concentration of major original equipment manufacturers. If you can succeed in Europe, chances are you’ll find success in other global markets as well,” he added.

When Sailun Tyre Europe began its European journey just over a decade ago, few in the industry could have predicted how swiftly the brand would rise. According to the executive, it ranks among the 10 most valuable tyre brands in the world today.

Cimbal recalls the group’s roots with quiet pride. “It all began a little more than 20 years ago in Qingdao, China. We were founded out of the Qingdao University of Science and Technology, a think tank for rubber technology with 30,000 students and 4,000 faculty members doing nothing but research on rubber,” he explained.

That academic foundation proved crucial. Sailun Group’s founder Yuan Zhongxue still is also a university professor whose role has always been to turn scientific research into real-world industrial solutions. One of his earliest achievements was the establishment of a machinery company, now known as Mesnac, which went on to become a major force in tyre manufacturing equipment.

A few years later, Sailun was born, initially, to serve China’s domestic market. “Success came quickly. The tyres were well received and demand just kept growing,” noted Cimbal.

That early success at home soon gave rise to ambition abroad. After a successful foray into North America, a relatively straightforward market by comparison due to its unified legislation, Sailun Group turned its sights on Europe.

“It was maybe 12 or 13 years ago when we entered Europe. We started the usual way by partnering with local distributors, shipping containers, building the brand from the ground up. The approach worked. For nearly a decade, we quietly expanded our footprint, growing year on year. Then, almost suddenly, the brand recognition soared. We started to appear in the top 10 of European tyre magazines. That was unimaginable just a few years ago,” Cimbal recalled.

The executive noted that currently its European operations are expanding. While the traditional import-distribution model continues to thrive, the group is now actively exploring original equipment partnerships and deeper regional integration with its partners.

Alluding to how did a relatively young company muscle its way into a fiercely competitive, brand-driven industry, Cimbal noted, “It was a combination of entrepreneurial ownership, cutting-edge technology and a deep-rooted respect for branding. We are privately owned. That means we can move fast. We also benefit from Mesnac’s machinery expertise and the scientific horsepower of our university roots. We take the brand very seriously. For us, it’s more than a name, it’s a mindset, a promise.”

STAYING COMPETITIVE

As the European tyre market shifts towards premiumisation and larger tyres with higher margins, many established brands are closing plants that once made smaller-size products. The move reflects a strategy to reduce volume while increasing profitability with a focus on 18-inch and above sizes.

Yet, Sailun Tyre Europe sees the market differently. “We don’t believe small cars or small tyres will vanish in a year or two. People will still use them for years and we see that as an opportunity,” said Cimbal.

The company positions itself as a full-range manufacturer. “We do tyres for small cars, medium cars, big cars, trucks, excavators, tractors etc. If an established brand sells at a price index of 100 and we offer similar performance at 70 or 75, it gives the consumer a sense of making a smart choice. They feel like they got the same quality for less; it’s a psychological win,” noted Cimbal.

Sustainability is another pillar of the company’s strategy. With modern factories, including its latest plant in Cambodia, which is just 18 months old, Sailun Tyre Europe can not only claim sustainability but also prove it. “That’s especially important for original equipment customers. If your sustainability processes aren’t in place, they won’t even talk to you,” said Cimbal.

While the manufacturer offers tyres across all segments, the strongest volumes remain in passenger cars. However, the company highlights its strength in truck tyres, citing nearly a decade of proven quality and performance. Its off-the-road tyre brand has also seen strong uptake in agriculture and construction, where reliability and brand trust are critical.

“It’s not about being cheap. We aim to be more affordable than traditional brands but still offer a high-value, reliable product. That’s attractive to farmers, construction firms and mining operators alike,” the spokesperson added.

On the evolving trend of tyres-as-a-service, the company isn’t actively engaged yet.

MARKETS IN VIEW

While the group has seen success in both North America and Europe, the two markets are vastly different in structure, regulation and consumer behaviour.

“In North America, the market is dominated by maybe five to 10 major wholesalers. In Europe, you’re dealing with hundreds. The difference isn’t just about distribution; it goes to the heart of how tyres are sold, marketed and perceived,” explained Cimbal.

Vehicle diversity plays a role too. “In North America, you generally see a lot of big trucks and a strong budget segment. But in Europe, the car types vary hugely. The complexity doesn’t end there. With 15 to 17 separate national regulations governing things like winter and summer tyres, the European landscape is a maze of legal requirements. The complexity of Europe is pretty unique,” added Cimbal.

Branding adds yet another layer as European consumers are heavily influenced by brands. They’re premium-oriented, very technology-conscious and pay close attention to the look, feel and messaging of a brand.

This awareness has shaped how Sailun Tyre Europe presents itself as it tries to appear smart, clean and modern.

Becoming a global brand is no simple task particularly for a company rooted in China. Commenting on how the group achieved this feat, Cimbal said, “It’s a tough, long journey from being a local brand in China to becoming a global one. You need a global framework, but you must also adapt the brand to local markets. European consumers don’t care what your brand looks like in China or the US; they want something that speaks to them directly.”

BRANDING EDGE

Back in the 1970s, Chinese manufacturers were often just copying European designs and not always doing it well, noted Cimbal. But that changed quickly. They moved from simply imitating to matching quality levels and then very rapidly to improving on them, doing it better, faster and cheaper. That’s the real secret behind the success.

According to him, it’s China’s ability to learn quickly and apply those lessons at scale that underpins its industrial momentum. In the tyre sector, evolution has brought performance, reliability and competitive pricing to global markets. But as the industry matures, product quality alone is no longer enough.

“Tyres are a branding game. The quality is there but others also make good tyres. For most consumers, all tyres look the same. That is why brand strategy is becoming critical for Chinese firms. Unless you’re a race driver or a tyre expert, you can’t easily tell one tyre from another. So brand becomes the key differentiator. It’s a shift already playing out in the automotive world and tyre makers will need to follow suit. We think we have the right tools and experience to manage it,” he contended.

As Chinese tyre manufacturers move from replication to innovation, a quiet transformation is underway. Across the board, Chinese manufacturers are no longer aiming to match European standards but working to surpass them.

This shift, Cimbal believes, is already beginning to reshape how Chinese-made products are viewed, particularly by younger consumers. “The next generation is growing up with products that are simply ‘Made in China’. They don’t question the quality. That label doesn’t carry the same doubts it used to,” he noted.

And in this high-speed race, brand perception could be just as critical as performance.

GEO-POLITICS AND SUPPLY

With a growing global footprint and an increasingly agile supply chain, Sailun Group is navigating a complex mix of political, economic and industry-specific challenges.

The group currently operates ten manufacturing plants in China along with facilities in Cambodia, Vietnam, Indonesia and Mexico, and a European plant is on the horizon, though the timeline remains uncertain.

The move to diversify production isn’t just political but strategic. As the European Union considers new anti-dumping tariffs on Chinese tyre imports, many Asian companies, including Sailun Group, are shifting capacity abroad. “You have to decentralise anyway for economic reasons. Now, with the threat of protective tariffs, it just makes even more sense. But it’s not a new strategy. The solutions are already in place,” explained Cimbal.

Despite growing geo-political friction, the company retains a high level of logistical flexibility. It can shift sourcing and supply routes quickly as needed.

In terms of product strategy, Sailun Tyre Europe remains committed to a balanced focus on both passenger car radial and truck and bus radial segments.

Surprisingly, the current economic downturn with inflation and cost-of-living pressures in regions like North America may actually benefit the brand. “We offer near-premium performance at a lower price. For consumers tightening their budgets, that’s a compelling proposition,” noted Cimbal.

 However, the tyre business remains layered with challenges. The industry, still largely traditional, is digitally underdeveloped. While tyres can be purchased online, the need for physical installation adds complexity but also presents upselling opportunities at dealerships and tyre outlets.

“Competition is among the most pressing concerns. The market is overcrowded with dozens of brands. Many of them are weak and some may vanish but no one is waiting for a new entrant. Earning a foothold requires a fight,” said Cimbal.

In a saturated European market, where demand has plateaued, the company sees growth through aggressive expansion. While legacy European manufacturers defend ageing infrastructure and close plants, Sailun Tyre Europe is building, growing and taking market share.

Commenting on the future of collaboration between companies, Cimbal noted, “There are simply too many brands and manufacturers in the market today. That can’t continue indefinitely. We will see more collaborations and mergers.”

As for growth, the company reports a sharp upward trajectory. “It depends on the market, but overall, we’ve seen a decent year-on-year growth. In some mature markets, even one digit is a big win. Elsewhere, higher two digits growth is possible, though those markets tend to be smaller. So it’s complex to quantify in a single figure,” contended Cimbal.

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India’s growing importance in the global tyre and rubber industry received a strong endorsement with HF Group announcing a EUR 20 million investment in a new state-of-the-art manufacturing facility in Bengaluru.

The announcement was made during the inauguration of HF India’s new Assembly Hall Unit II, a milestone that reflects the company’s long-term commitment to India and its confidence in the country’s manufacturing future.

The proposed greenfield facility will be developed on a 10-acre site near Bengaluru Airport and is scheduled for completion by 2028. Spread across nearly 20,000 sq. metres, the new factory will be almost four times larger than the current assembly operations and will incorporate digital manufacturing, automation, smart production systems, and advanced engineering capabilities.

The upcoming facility will focus on productivity, precision engineering, sustainability, and smart manufacturing while supporting both the Indian market and HF’s global operations. The investment underlines the company’s confidence in India as a major manufacturing hub for the global tyre and rubber industry.

Ian Wilson, Managing Director & Co-CEO, HF Group, said, “This is not the end of our investment in India. It is perhaps the end of the beginning. India is entering a take-off decade and the economy runs on tyres. We see tremendous opportunities for growth and are committed to investing in the future of the Indian market.”

With more than 175 years of global experience, HF Group has steadily strengthened its presence in India. The journey began in 1995 with the establishment of Indus to serve the growing rubber processing industry. The partnership with HF Mixing Group in 2011 brought global mixing technology expertise to India, while the complete acquisition of the Indian subsidiary in 2024 marked another important milestone in the company’s India strategy.

Today, HF India manufactures and supports a broad portfolio of mixing and rubber processing equipment, including intermeshing and tangential mixers, banbury technology, mills, curing presses, and aftermarket services. The company also offers process support, training, upgrades, inspections, and spare parts under its customer-centric philosophy of ‘Holding the Customer’s Hand.’

Emphasising the importance of customer partnerships, Wilson said, “We are not here simply to sell machinery. We want to hold our customers’ hands throughout the entire lifecycle of their equipment and support them through process optimisation, performance improvements and future growth.”

As HF embarks on its next chapter in India, the new facility represents not only an investment in manufacturing capacity but also a long-term commitment to localisation, technology and customer partnerships.

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TBC Corporation (TBC), one of North America’s largest marketers of automotive replacement tyres through wholesale and franchise operations, has named Ron Harper as its new Chief Supply Chain Officer. He will report directly to President and CEO Don Byrd and assume responsibility for the company’s entire supply chain function.

Harper brings over 26 years of experience steering global supply chains for multi-billion-dollar enterprises. His most recent role was Executive Vice President of Supply Chain at PrimeSource Building Products, overseeing planning, inventory, repack operations, service metrics and analytics. He has also held senior logistics and strategy positions at Sonepar USA, Nordstrom, Samsung SEA, and JCPenney.

The new chief holds a master’s degree in supply chain management from the University of Denver and a bachelor’s in industrial management from Michigan Technological University. His appointment underscores TBC’s focus on strengthening operational efficiency and logistics performance.

Byrd said, “Ron’s depth of experience in building transformative supply chain solutions aligns with our deep commitment to providing customers with the high-level efficiency, product availability and agility they expect from TBC. As market needs change and demands fluctuate, TBC is continuing to respond by having a supply chain strategy that minimises disruptions and maximises efficiency to ensure the highest levels of customer support and satisfaction.”

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The Rubber Board of India has announced the appointment of N Hari as its new Chairman, effective for a tenure of three years. Hailing from Pallikkathode in Kottayam, Kerala, Hari brings considerable experience to the leadership role, having previously served as a Board member representing small rubber growers from the state.

His initial term on the Board commenced on 28 June 2022 and spanned three years. During this period, he also held the position of Executive Committee Member from 7 October 2023 to 6 October 2024. This progression from membership to the executive committee and now to the chairmanship reflects his sustained engagement with the organisation.

His appointment is expected to steer the Board's initiatives in supporting the rubber sector, focusing on grower welfare and industry development across India.

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The Indian automotive landscape is currently undergoing a seismic shift. Driven by the rapid rise of rural urbanisation, an aggressive government push for electrification and the development of world-class road infrastructure, the industry is witnessing a period of robust growth. With sales of both new and used vehicles touching record highs, the demand for high-quality tyres remains in a significant upswing.

At the helm of one of the market’s most prominent players is Rajarshi Moitra, Managing Director of Bridgestone India and Vice-Chairman, Automotive Tyre Manufacturers’ Association (ATMA).

In an interaction with Tyre Trends, Moitra discusses the company’s future-ready roadmap, from its substantial capacity expansions to a ‘sharp and deep’ strategic focus designed to maintain leadership in an increasingly premium and electrified market.

A BULLISH OUTLOOK ON THE SUBCONTINENT

While global economic indicators remain varied, Moitra is unequivocally optimistic about the local trajectory. “The Indian automotive industry is at an exceptionally positive juncture from a medium-to-long-term perspective,” he asserts.

This optimism is grounded in several structural tailwinds that suggest India is slated for very strong growth. Key among these factors is the sheer room for market expansion.

“Firstly, we are still significantly under-indexed in terms of car penetration, with only 50 cars per 1,000 people – well below even some smaller developing nations,” Moitra explains.

Furthermore, the geographical spread of wealth is changing. Bridgestone is observing massive growth in Tier 2, 3 and 4 towns, a phenomenon Moitra attributes to ‘rural urbanisation’.

Bridgestone India estimates a transformative half-decade ahead for the industry. “The number of affordable households – those capable of purchasing a car – will double in India over the next five year. When you couple this with the government’s massive capital outflow into road connectivity and the rise of e-commerce, it creates a very bullish environment for both passenger and commercial mobility,” Moitra says.

THE ‘SHARP AND DEEP’ STRATEGIC PILLAR

Despite India being the world’s largest two-wheeler market, Bridgestone is famously absent from that segment – and intends to stay that way for now. Moitra clarifies that the company’s philosophy is rooted in specialisation rather than horizontal expansion. “At Bridgestone, we believe in being ‘sharp and deep’ in our strategy,” he says.

Currently, Bridgestone India’s business split is heavily weighted towards the consumer segment, with 70 percent of sales coming from Passenger Car Radial (PCR), 25 percent from Truck and Bus Radial (TBR) and 5 percent from Off-the-Road (OTR) segment.

“We see enough headroom for growth within the passenger car segment across products, channels and customer experience, so we are focusing our resources on maintaining our leadership there,” Moitra notes, dismissing any near-term plans to enter the two-wheeler space.

Instead, the company is doubling down on ‘white spaces’ within the consumer car category, specifically targeting higher rim diameters and specialised compounds for Original Equipment Manufacturers (OEMs).

INVESTING IN CAPACITY AND LOCAL INTELLIGENCE

To support this growth, Bridgestone is moving aggressively on the manufacturing front. With current operations running at 90–95 percent capacity, the company is in the midst of a major investment cycle.

At present, the company’s Pune plant has a capacity to produce 4.01 million passenger car tyres and around 693,000 truck & bus radial tyres, while the Indore plant has a capacity to produce 7.11 million radial tyres for passenger cars and light trucks.

“Our last major investment was USD 85 million in October 2024, which is being ramped up in phases through 2029,” Moitra confirms. This capital is being used to scale volumes and enhance technical capabilities at the Indore factory.

The new investment is expected to further add 1.1 million tyre production capacity in Pune by CY2029, thus taking its total production capacity to around 11.1 million units in the country.

“Our strategy is two-fold: we want to be future-ready for market demand while simultaneously sweating our current assets to drive higher efficiency,” Moitra explains. Crucially, this expansion isn’t just about physical output; it’s about local autonomy. Moitra highlights that a ‘very large part’ of procurement is now local, decided by teams on the ground in India.

The launch of a Satellite Technology Centre in 2025 has further decentralised the company’s innovation engine. According to Moitra, this centre plays a pivotal role in increasing local leverage and technical presence, allowing the Indian arm to maintain a balance between local agility and global sourcing.

EVs AND PREMIUMISATION

As the Indian market matures, consumers are demanding larger wheel sizes – a trend Moitra says is led by OEMs. “We are seeing a clear market shift towards higher inches – for example, a car like the Maruti Suzuki Swift moving from 14-inch to 15-inch and others moving from 16-inch to 17-inch,” he observes.

Bridgestone’s ‘all-inch’ strategy covers the spectrum from 12 to 20 inches, but their brand strength is most potent in these premium, higher-diameter sizes.

This premiumisation dovetails with the transition to electric vehicles (EVs). Bridgestone has positioned itself with an ‘EV-ready’ portfolio, exemplified by the Turanza 6i. “It balances long-lasting durability and safety with low noise and comfort – essential for EVs,” says Moitra. To ensure they capture this nascent but fast-growing market, the company expanded the range from 36 sizes in 2024 to 72 sizes by 2025.

The OEM relationship remains the cornerstone of this technological foresight. “The OEM segment allows us to see ahead of the curve regarding future vehicle technologies,” Moitra explains.

At present, 35 percent of their consumer business is OE-based and Bridgestone is in active discussions with many of the newer automotive entrants arriving in India.

While Bridgestone is aggressively expanding its footprint in new tyre technology and premium consumer segments, it is taking a markedly more conservative approach towards the retreading sector in India. Despite the potential for material circularity, the company does not view retreading as a strategic priority for the immediate future.

Moitra clarifies that Bandag, Bridgestone’s global retreading arm, is not currently active in India, and there are no plans to introduce it in the near-term. This decision is driven largely by the unique and challenging dynamics of the local market, which is currently dominated by cold retreading.

He points out that a significant pricing challenge exists when ‘cold retreads versus biased tyres versus some of the cheaper tyres’ are compared, making the business case difficult to justify at this stage. Consequently, Bridgestone has opted to remain focused on its core segments for the next two to three years rather than entering the retreading space.

SUSTAINABILITY AND THE ‘INSTITUTION OF RESPECT’

Beyond the numbers, Bridgestone is attempting to build what Moitra calls an ‘institution of respect’. This involves a heavy commitment to environmental goals. The Pune plant already holds the distinction of being the first carbon-neutral facility in the Bridgestone group.

“Sustainability is a core agenda across our entire value chain,” Moitra explains, noting a public commitment to reduce the company’s carbon footprint by 50 percent by 2030, including Scope 3 emissions. This holistic approach ranges from manufacturing processes to material circularity in the tyres themselves.

Looking ahead, the goal is to protect a dominant market share – currently over 20 percent by volume and 23 percent by value in the passenger car aftermarket. To do this, Bridgestone plans to expand its physical reach by 30 percent over the next five years, building upon its current network of over 4,000 touchpoints.

As the company transitions its branding from the Olympics to Formula E, the focus remains clear: high performance and the next era of mobility. “It’s the perfect platform to showcase our technological edge,” Moitra concludes.

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