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)

The Tire Society will hold its 45th Annual Conference and Business Meeting on Tire Science and Technology on 22–23 September at the University of Akron, as the industry turns its attention to digitalisation and data-led development.

The not-for-profit organisation said the event, themed “Reinventing the Tire: Digital Transformation, Data-Driven Advances, and Predictive Methods”, will bring together engineers, researchers and executives from manufacturers, suppliers, laboratories and universities across North America, Europe and Asia.

The two-day programme will feature presentations from invited speakers and researchers on developments in analytical, experimental, digital and computational science of tyres.

Young Gon Shin, Vice-President of Hyundai Motor Company’s MSV Chassis Engineering Design Group and chair of its Tire System Expert Committee, will deliver the opening keynote. His address, “Reinventing Tire Development for the SDV Era: Closing the Loop through Connected Data and Digital Twin Transformation,” will examine the impact of electrification and software-defined vehicles on tyre development.

Across five technical sessions, nearly 20 presentations will cover topics including tyre models for vehicle simulation, physics-based modelling, durability and rolling resistance, lifecycle analysis, and emerging technologies such as tyre sensors and hydroplaning detection.

The programme will also include two plenary lectures. Thomas J.R. Hughes of the University of Texas at Austin will present “The Finite Element Method and Isogeometric Analysis: Past, Present, Future”, while Bruno Finco and Girish Radhakrishnan of MOVEdot will discuss “AI Agents in Tire R&D: Accelerating Design Cycles Across Lab, Track, and Simulation.”

The first day will conclude with an awards banquet featuring the Society’s annual awards presentation led by Jason Bokar of Michelin Americas R&D Corporation, and a speech from Chris Chapman of MongoDB titled “The Data Intelligence Layer: Building Agentic Systems with Memory.”

Day two will include the Society’s annual business meeting and state of the organisation address, alongside distinguished award presentations.

“This year's program captures a real inflection point in our industry — tire engineering is moving from a testing-centered process to one built around connected data, digital twins, and predictive models,” said Adam Stackpole, 2026 conference programme chair. “We're excited to bring the tire science community together in Akron to share this work and set the agenda for what comes next.”

Registration details and the full programme are available via the organisation’s website.

Apollo Tyres has appointed Omar Bali as Group Head – Talent, Learning and HR Business Leader for enabling functions.

Based in Gurugram, Bali will lead talent, learning and leadership for the organisation and partner as HR business leader for enabling functions.

He joins Apollo Tyres after more than 10 years at Signify, where he held multiple roles across geographies. Most recently, he served as Global Head – Talent and DE&I, leading talent strategy across more than 70 countries and working with senior leaders on workforce planning, skills-based organisation initiatives and digital learning transformation.

Earlier at Signify, he was Head HR for the Middle East, Turkey, Africa and Pakistan, supporting more than 25 markets and focusing on leadership pipeline, employee experience and organisational capability.

Prior to this, Bali held roles at Philips Lighting as Director HR, at Micromax Informatics as Head – Business HR, and at Whirlpool Corporation, where he worked across talent acquisition, performance management, learning and development, and HR business partnering.

Bali has more than 20 years of experience across consumer goods, manufacturing, pharmaceuticals and technology sectors.

Mexico’s automotive industry is entering a pivotal phase as global manufacturers rethink supply chains, tariffs reshape trade flows and the transition to electrification gathers pace. While uncertainty over evolving technologies and geo-politics continues to weigh on investment decisions, the country is leveraging its deep North American integration, competitive manufacturing base and expanding tyre sector to reinforce its position as a global auto parts powerhouse. Industry leaders now see fresh opportunities emerging not only from US and Canada but also from Latin America, Europe and India.

Mexico’s automotive parts industry is entering a new growth cycle powered by deep North American integration, expanding trade agreements, low-cost manufacturing and a rapidly evolving tyre sector that is adapting to electrification, hybrid vehicles and changing consumer preferences.

While global uncertainty over tariffs and the pace of electric vehicle (EV) adoption continues to cloud investment decisions, Executive President of Industria Nacional de Autopartes (INA) Francisco N. Gonzalez Díaz believes Mexico’s mature manufacturing ecosystem, skilled workforce and strategic location position it for another decade of expansion, one that could also strengthen ties with emerging automotive partners such as India.

“The country’s automotive supply chain has transformed dramatically since the North American Free Trade Agreement (NAFTA) came into force in 1994. Today, Mexico is the world’s fourth-largest producer of automotive parts and one of the most integrated manufacturing hubs in North America, exporting components and tyres primarily to United States and Canada while increasingly targeting Latin America and Europe,” said Diaz during an exclusive interaction with Tyre Trends.

He added, “The tyre sector is very important in Mexico. Over the past few years, we’ve seen major investments from companies such as Michelin and Pirelli and we also have Indian tyre manufacturers operating in Mexico. The industry is growing in both passenger and commercial vehicles while introducing technologies that reduce pollution and improve efficiency.”

Tyres produced in Mexico are exported not only across North America but also to Latin America and other international markets, making the sector an important contributor to the country’s automotive exports.

CHANGING LANDSCAPE

Although the Mexican tyre industry was once dominated by domestic manufacturers, the landscape has changed significantly. Companies such as Tornel were acquired by international firms as global players expanded their manufacturing footprint in the country.

Díaz noted that these acquisitions accelerated technology transfer and modernised production capabilities, effectively integrating local manufacturers into global supply chains.

Yet he believes the next generation of Mexican tyre companies may emerge through electrification.

According to him, two Mexican start-ups are currently developing tyres specifically for electric vehicles. Unlike conventional passenger-car tyres, EV tyres must withstand significantly greater vehicle weight while maintaining the dimensions and ride characteristics expected of passenger vehicles.

“These aren’t start-ups with four or five people,” he said. “They already employ close to 100 people and are developing tyres for one of the largest electric vehicle companies in United States.”

Unlike many markets where fully electric vehicles dominate industry discussions, Mexico’s transition is being led by hybrids.

With charging infrastructure still concentrated in homes, offices and selected commercial locations, plug-in hybrid vehicles are proving more practical than battery electric vehicles.

While EV sales are growing at roughly 30 percent annually, Díaz said they still represent a relatively small portion of the overall market.

Hybrid vehicles, however, are becoming the dominant technology, reshaping demand across the automotive supply chain including tyres.

CONSUMER PREFERENCES

Consumer preferences are also shifting in other ways. SUVs continue to gain market share across the Americas, while pickups remain popular throughout North America. Small passenger cars continue to sell primarily within Mexico but are growing more slowly than larger vehicles. At the same time, manufacturers are producing larger vehicles equipped with smaller engines as hybrid powertrains become more common.

Asian automakers are another defining trend. “Chinese, Japanese and Korean brands now account for the largest share of new vehicle sales in Mexico, reflecting changing consumer preferences and increasing regional competition,” said Diaz.

Climate is also influencing tyre demand. More intense rainy seasons are driving growing adoption of all-season tyres, which require more sophisticated compounds and engineering than conventional tyres.

“As weather patterns become more extreme, all-season tyres have become an increasingly important business for the tyre industry,” Díaz said.

EXPORTS LEAD

Mexico’s automotive success, however, remains closely tied to exports. Approximately 90 percent of the country’s automotive production is destined for United States and Canada, creating what Díaz describes as a single integrated North American manufacturing market rather than three independent national industries.

“Vehicle components frequently cross borders multiple times before final assembly. While tyres generally move only once or twice, other automotive components may cross the US-Mexico border as many as seven times during production,” he noted.

This integration is reinforced by United States-Mexico-Canada Agreement rules requiring 75 percent regional value content, encouraging manufacturers to source components within North America.

While Mexico’s dependence on exports often raises questions about vulnerability to geo-political tensions, Díaz argues the country’s manufacturing model resembles those of Germany and South Korea.

Instead of viewing exports as a weakness, he sees them as Mexico’s greatest competitive advantage.

MANUFACTURING APPEAL

The country’s manufacturing appeal extends well beyond geography. Mexico enjoys free trade agreements with markets throughout Latin America and is also a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), giving manufacturers tariff-free or preferential access to dozens of international markets.

The country also accounts for roughly 52 percent of Latin America’s advanced manufacturing capacity, making it the region’s undisputed industrial leader.

Equally important is the ecosystem surrounding automotive production. Mexico offers experienced engineers, skilled technicians, established suppliers, mature logistics networks and decades of manufacturing expertise.

“You don’t have to build an industry from scratch,” Díaz said. “The suppliers, knowledge, logistics and the customers are already here.”

The country’s position as the world’s largest exporter of trucks and a production hub for passenger vehicles including BMW models further strengthens domestic demand for both commercial and passenger vehicle tyres.

Unlike emerging manufacturing destinations that may offer inexpensive labour but lack industrial capabilities, Mexico already possesses the specialised workforce and supply chains necessary to support complex automotive production.

CERTAINTY IN UNCERTAINTY

Despite uncertainty surrounding global trade, investment enquiries continue. Some manufacturers have already secured land for expansion, while others remain cautious as they monitor evolving trade policies.

According to Díaz, around 10 to 12 Indian companies are currently exploring investments in Mexico to establish tier-II and tier-III automotive component operations serving North America.

The interest reflects Mexico’s continued attractiveness even after renewed tariff discussions under the Trump administration.

When United States introduced new tariffs shortly after President Donald Trump’s return to office, Mexico initially appeared vulnerable. However, automotive components that complied with USMCA rules quickly regained tariff-free access.

“The direct impact on Mexican auto parts has been minimal,” Díaz said.

Instead, tariff-related costs have largely been absorbed by vehicle manufacturers rather than component suppliers.

Indirect effects have emerged through higher prices for steel, aluminium and other raw materials, prompting manufacturers to reconsider sourcing strategies, particularly for North American-produced steel.

Even so, Díaz believes the overall trading framework continues to function effectively.

LOCAL ADVANTAGES

Mexico’s manufacturing competitiveness is reinforced by strong local sourcing. On average, around 85 percent of tyre materials and related inputs are sourced domestically, with only about 15 percent imported, although specialised products can require significantly higher import content.

Tyres themselves account for approximately 8–9 percent of Mexico’s automotive components industry by value. Efficient logistics further enhance competitiveness.

Rail remains the preferred mode of transport for most automotive exports because production schedules are planned months in advance. Trucks handle regional distribution, while shipping and air freight are used only when necessary.

Energy costs represent another important advantage. Abundant natural gas from neighbouring Texas has helped keep electricity prices among the lowest globally, while Mexico also possesses substantial solar and wind resources.

The remaining challenge lies in expanding transmission infrastructure so electricity generated in one region can be distributed more efficiently across the country.

Manufacturing costs, meanwhile, continue to rise, but so does productivity. Mexico is no longer the ultra-low-cost manufacturing destination it was in the 1970s. However, Díaz said wage growth is increasingly being matched by productivity gains.

Citing projections from the OECD and the Economic Commission for Latin America and the Caribbean (ECLAC), he expects productivity to continue improving over the next five years, allowing higher wages without significantly eroding industrial competitiveness.

HURDLES IN FRAY

The industry’s biggest challenge today is uncertainty rather than costs.

Rapid policy shifts surrounding electric vehicles, changes to the US Inflation Reduction Act, Europe’s evolving emissions regulations and emerging hydrogen technologies are forcing manufacturers to invest simultaneously in internal combustion engine and EV production.

Companies must finance parallel production lines despite demand remaining difficult to predict. “It’s a significant capital expenditure,” Díaz said. “But we know the future is coming, so we have to be ready.”

Mexico’s tyre recycling sector remains comparatively underdeveloped.

Less than 5 percent of end-of-life tyres are processed domestically with most used tyres exported to United States, where larger recycling infrastructure already exists. Domestic recycling operations remain small and largely artisanal.

On policy, Díaz said Mexico currently has no immediate plans comparable to India’s ethanol blending programme, although regulatory changes can be implemented quickly when necessary.

Trade policy, however, continues to encourage localisation. “Imported vehicles that fail to meet Mexican content requirements face tariffs, incentivising manufacturers including motorcycle producers from India to incorporate locally produced components,” said Diaz.

He noted that Mexican suppliers now provide roughly 90 percent of the components used in motorcycles assembled in the country, compared with only about 2 percent when localisation efforts first began.

OPTIMISTIC TURNS AHEAD

Looking ahead, INA expects Mexico to deepen its integration not only within North America but also across Latin America and Europe.

The association believes Mexico’s share of the Mercosur automotive components market could rise from roughly 2 percent today to as much as 10–15 percent over the next five years as manufacturers increasingly seek competitive production bases.

At the same time, European companies facing rising costs and geopolitical uncertainty are shifting portions of their manufacturing footprint to Mexico to serve markets on both sides of the Atlantic.

India will also play a growing role in that strategy.

Rather than simply importing or exporting products, Díaz envisions deeper industrial partnerships extending into third-country markets. “Our job is not to wait and see,” he said. “Our job is to strengthen the relationship.”

For INA, the long-term opportunity extends beyond bilateral trade.

As a member of the G7 association of the world’s seven largest automotive parts-producing countries, Mexico is positioning itself not merely as a manufacturing destination but as a strategic partner helping shape the future of the global automotive supply chain.

Balkrishna Industries Ltd. (BKT) has expanded its commercial vehicle tyre distribution network in central India with the opening of a warehouse in Indore, as it seeks to build its presence in the commercial vehicle radial (CVR) segment.

The facility, inaugurated recently, is intended to strengthen product availability and improve regional access in Madhya Pradesh, a state the company identifies as a key growth market.

Indore’s position as a freight and passenger transport hub, coupled with its proximity to the Pithampur industrial belt, underpins the company’s decision to locate the warehouse in the city. The facility will be operated by authorised distributor Shivam Track Impex Pvt. Ltd., supporting closer engagement with dealers, transporters and fleet operators.

The inauguration was attended by senior executives including Rajiv Poddar, Joint Managing Director, Satish Sharma, Senior President and Director of Business Development and Strategy, and Amitkumar Agarwal, National Sales Head for Commercial Vehicle Radial Tyres. Representatives from the regional transport sector were also present.

Agarwal said: “Madhya Pradesh represents an important opportunity for BKT as we build our presence in India’s Commercial Vehicle Radial segment. The expansion in the state reflects our confidence in the opportunity and our commitment to building the right ecosystem, in partnership with our authorised distributors to serve customers effectively. Indore provides a strategic base for us to strengthen our market access and engage more closely with fleet operators and channel partners.

“The new warehouse is an important part of this approach, as it will help us improve product availability and create greater responsiveness across the market. We want to build long-term relationships with transporters, fleet owners and our channel partners and as we expand our CVR business in Madhya Pradesh, our objective is to create sustainable value for the entire ecosystem and grow together with our partners.”

The move follows the launch of the company’s commercial vehicle tyre portfolio in the first quarter of the 2026–27 financial year, including the BKT m.Loadxpert (11.00R20) and BKT Milexpert RG (295/90R20). BKT said it is seeing early traction and is focusing on expanding its reach across key markets through its distribution network.