In 2014, Zivojin Sekulic was presenting a concept about Serbia as a future hot spot for tyre production in Shandong, in China, one of the world’s biggest tyre production province. By then, nobody was bullish on Serbia and saw the country as the next tyre production hub, but Sekulic applied analysis and research methods to support his prediction.

Sekulic has been with the industry for over a decade, and has been responsible for developing, managing and supporting operations in  Europe, Asia, and the USA.

Several reasons could support Sekulic's claims. One of the reasons for that prediction was geopolitical relations between China, USA, EU and Euroasia. To de-risk trade tension, many tyre companies are exploring alternative production locations, and Serbia is emerging to be a viable place to target major markets. Also, Also, 'made in EU' effects are needed for OEM contracts which also help to brand building.

Having those reasons in mind, Sekulic forecast that Chinese tyre companies will come to the Eastern and South-Eastern Europe to setup tyre plants to avoid anti-dumping duties, apply made in EU effect to their brand and to get some OEM contracts as they need to be close enough to automotive plants due to specific logistic delivery contracts.

Five years later, Linglong Tire in 2019 started to build a tyre plant in Serbia with an investment of almost one billion USD. "Serbia is China's first strategic partner in central and eastern Europe and has a favourable environment for development and investment," said the Chinese tyre company. After the completion of the project, the annual output of various high-performance radial tyre will reach 13.62 million units, with yearly revenue of $ 600 million.

In the same year just a few months later, another Asian Tyre producer, Toyo Tire announced that it will setup a plant in Serbia.  The Japanese company will invest around 3.91 million euros in the plant, which will produce tyres for passenger vehicles with an annual capacity of five million tyres. Toyo Tire will start construction of the Serbian Plant in May 2020, and manufacturing operations are expected start in January January 2022, with a capacity of five million tyres annually (based on tyres for passenger vehicles) by the summer of 2023.

Cooper Tire Serbia, a subsidiary of Cooper Tire & Rubber is also increasing production capacity at its Kruševac tyre manufacturing plant. With a strategic manufacturing footprint investment of approximately $55 million in equipment upgrades and facility expansion, the project will increase the size of the Kruševac facility to more than 882,000 square feet.

Cooper Tire Serbia will produce new, larger diameter tyres being demanded in Europe and other global markets. Total annual production capacity at the Kruševac plant will increase by approximately one-third after this expansion, which is expected later this year and will establish a footprint which could further double capacity with additional equipment and people.

"We can say that 2019 was an amazing year for the tyre Industry of Serbia. With already four tyre manufacturing plants of Michelin, Copper Tire, Mitas and Trayal, the country will have two more manufacturing plants soon. That is a huge success for Serbia as we all know that even countries with a bigger population and bigger size have lesser number of tyre plants in Europe," says Zivojin Sekulic.

A chat with Zivojin Sekulic:

Why are tyre companies showing increasing interest in Serbia for setting up plants – and generally in eastern Europe?

The reason for setting up tyre plants in Serbia is because of its specific geopolitical status. Serbia is in Europe, but not in the EU. That means particular goods produced in Serbia can be exported with 0% duty to EU, Russia, USA and countries of CEFTA and EFTA agreements and that's the market of almost one billion people. Comparing to anti-dumping duties for tyres produced in China, sounds like a good benefit, right?

Also, another reason is the label of “Made in EU” for tyre brands. The “Made in EU” effects help tyre companies to become recognisable and increase the prices, comparing to prices of tyres produced in China, and that means more significant profit.

Take the example of Hankook and their plant in Hungary. Only a few years after setting up their plant in Hungary they were selling more than 30% of their total annual production in EU and today with OEM contracts, excellent marketing strategy and outstanding R&D teams, they are in the race to become premium brand. So, imagine one day, maybe in five to eight years from today, Linglong can be close to the premium tyre brand and with the right strategy and marketing activities, if they decide to go that way.

One more reason is OEM contracts. Before setting up the plant in Serbia, Linglong signed a deal with VW and Renault, and now tyres produced in the Chinese company's tyre plant in Serbia will be delivered to these two automotive giants.

What benefits/ incentives that Serbia offers?

There are several benefits that country like Serbia is ready to offer to foreign investors. But I would like to highlight the benefits in general, not to go deeper in an analysis of specific incentives as that depends from situation to situation.

For example, the government is offering land where investors can set up a plant free of charge. There are also some tax incentives for more significant investments which are happening in the tyre industry. For instance, Cooper Tire's expansion project is supported by around $8 million in incentives provided by the Serbian government. Some investors can even get incentives per each employee that they will hire (basically like cashback card ). So, a general conclusion is that country like Serbia is really generous to foreign investors, and they should have that in mind.

Which companies are in the process of setting up?

At this moment Linglong is building the tyre plant in the city of Zrenjanin and Toyo announced that they will start building a plant in the city of Indjija very soon.

On the other side, there are major tyre companies - Mitas, Michelin, Cooper Tire, Trayal, which are producing tyres the country.

What's the future of tyre industry in Serbia?

Even I was right six years ago with a prediction that Asian tyre producers will setup tyre plants in Serbia in the near future that doesn't mean I will be right this time. But I genuinely believe that in Serbia there is a place for one more tyre plant. Specifically, I am thinking about a TBR , Agri and OTR tyre plant that can be built in a place where now Trayal's old plant is located which is still working and producing tyres for agriculture.

Going forward, the future of the Serbian tyre industry will move in another direction. After setting up plants, we will see R&D centres and Testing grounds and facilities in the country. I am predicting this because, for R&D, you need to have an excellent workforce and Serbia really has top-notch engineers and amazing developers. Currently, Continental has an R&D centre in the city of Novi Sad where several hundreds of engineers are employed.

In my working experience of 14 years in the tyre industry and 10 years in the IT sector, and having experience from Silicon Valley, I can tell you that engineers, researchers and software developers in Serbia are outstanding and not expensive like in the western EU or Silicon Valley. So, I am pretty sure that future intelligent tyres that will be based on sensors and specific software and machine learning will be designed and produced in some of the R&D centres based in Serbia.

Regarding testing facilities. Well, why should someone go to Spain or to Nordics to test summer or winter tyres if they can do it in Serbia as our climate is changed, so we have very hot summer and extreme winter, the perfect climate for tyre testing.

Q) Please share some information on your Project SMARTY?

My project SMARTY is related to the tyre industry and related to the development of smart tyres and smart trucks.

Using my vast experience from the tyre industry and IT industry, with a team of developers, I am working on the development of specific sensors, hardware and software that will be used in vehicles to optimise the costs and to prevent the accidents with tyres. We want to predict failure before it happens.

Currently, we have some working models and, shortly, we will start with sales of those models. The final goal is to make SMARTY device to become necessary in every vehicle to become smart or autonomous. Sensors for truck and OTR tyres we will unveil soon.

(Zivojin Sekulic: z.sekulic@gaj.rs)

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Doublestar Tires recently participated in Automechanika Dubai, presenting a range of products tailored to the specific demands of the Middle Eastern automotive aftermarket.

The company highlighted steady growth in regional demand for high-performance, wear-resistant tyres, driven by high ambient temperatures, desert terrain, the popularity of sport utility vehicles, and the increasing adoption of new energy vehicles.

At the exhibition, Doublestar showcased several specialised products, including desert all-terrain tyres, tyres developed for new-energy vehicles, and its NdGold truck and bus radial range.

The W01, designed for desert all-terrain vehicles, features a distinctive shoulder pattern intended to improve driving stability and safety. According to the company, its bionic wolf-claw tread design increases grip by 15 per cent while reducing rolling resistance, supporting off-road performance in demanding conditions.

Doublestar also presented the EV97, a passenger-car radial tyre explicitly developed for new-energy vehicles. The tyre is designed to accommodate the high-torque start-up characteristics of electric cars and incorporates a high-density belt layer and a reinforced crown belt layer. Its non-porous tread design is intended to balance appearance with safety performance.

In the commercial vehicle segment, the company introduced its NdGold truck and bus radial tyres. These use an ultra-wear-resistant compound designed to extend service life in high-temperature environments and improve overall vehicle safety.

Doublestar said its focus on differentiated and cost-effective products reflects its emphasis on innovation and supports its ambitions for further growth in global tyre markets.

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Continental has been re-elected as co-chair of the Tire Industry Project until 2029, extending its leadership role in the global tyre industry’s main sustainability forum.

The company said it would continue to contribute resources and technical expertise, particularly in tyre and road wear particles, end-of-life tyres, sustainability assessment methods and supply chain transparency.

The Tire Industry Project (TIP) brings together leading tyre manufacturers to address environmental and sustainability challenges across the sector.

The German tyre company has been involved since TIP’s founding in 2005.

“We are honoured to have been re-elected as Co-Chair. TIP fosters collaboration within the tyre industry, and beyond, with academia and other partners,” said Christian Kötz, Head of Continental Tires and a member of the executive board of Continental AG.

“Founded 20 years ago, TIP brings together the largest tyre makers to tackle complex overarching sustainability challenges – such as advancing scientific understanding of tyre wear emissions.”

“Continental takes its sustainability responsibilities seriously. This includes our active involvement in industry-wide associations. TIP is ideally suited to reinforce Continental´s ambitious sustainability agenda,” Kötz added.

Dr Larisa Kryachkova, Executive Director of the Tire Industry Project, said Continental’s re-election reflected its long-standing engagement with the initiative.

“Continental has been committed to TIP since its foundation 20 years ago,” Kryachkova said. “Its re-election as Co-Chair is a testament to Continental’s strong expertise and spirit of cooperation.”

She said Continental would work alongside Bridgestone, Goodyear and Michelin, which together will help shape TIP’s strategic direction as co-chair companies.

Operating under the auspices of the World Business Council for Sustainable Development, the Tire Industry Project focuses on sustainability across the entire tyre lifecycle, from raw material sourcing and manufacturing to use and end-of-life management.

TIP brings together 10 leading tyre companies that collectively represent more than 60 percent of global tyre production capacity.

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The year 2025 marked a significant chapter for VMI Group as it celebrated 80 years of operation, highlighting a landmark achievement for the international manufacturing firm. The company, which began as a modest workshop in Gelderland, Netherlands, has evolved into a worldwide operation serving the tyre, rubber and related industries across multiple continents.

The anniversary year was structured around the theme ‘Around the World in 80 Years’, featuring a series of celebratory events at major global facilities. Activities commenced with a virtual gathering connecting the entire organisation on 1 April. This was followed by large-scale in-person events in key locations including Yantai, China; Stow, United States; Itatiaia, Brazil; Leszno, Poland; and Vadodara, India. A particular highlight was a Family Day in Epe, Netherlands, which drew participation from over 3,000 employees and their family members.

The extensive campaign served not only to highlight the company's global scale but also to honour the collective contributions of its workforce. The celebrations were framed as a tribute to the employees and their families whose efforts over eight decades have shaped the company's unique and inclusive culture.

Underpinning the anniversary recognition is the company's longstanding commitment to innovation. Throughout its history, VMI has emphasised research and development, driving its growth with a continuous pipeline of new products designed for its global customer base.

Adding to the year’s milestones, VMI also received a gold EcoVadis award in 2025. This recognition underscores its standing as a leader in sustainability and environmental responsibility within the manufacturing sector.

Harm Voortman, CEO, VMI, said, “VMI is a global business, but we are also truly local in every country where we operate. We pride ourselves on being professional, rigorous and always working to the highest standards but also welcoming, open and friendly to everyone.”

Mike Norman, Chief Commercial Officer, VMI, said, “This great milestone has been reached and VMI is already looking forward to new challenges, new achievements and more celebrations- with innovation as the key to success in the future, just as it has been for the past 80 years.”

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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.

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