Turkey’s first producer of fully bio-based process oils is challenging industry conventions with a zero-waste approach and performance-driven sustainability. Müge Metinöz, R&D Director, Skyhem, explains how a young Turkish chemicals company is transforming an industry long dominated by petroleum derivatives.

When Müge Metinöz joined Skyhem Kimya at a very early stage of its journey, she brought eight years of experience developing more sustainable tyres, focusing on alternative and non-conventional materials and innovative approaches. Throughout that period, one recurring challenge had become very clear to her: the gap between sustainability ambitions and industrial reality.

“What made Skyhem particularly distinctive and exciting for me was its clear recognition of this gap and its decision to address it not by slightly improving existing systems but by rethinking bio-based process oils from the ground up. The objective was never to offer a ‘greener version’ of petroleum-based products but to develop an alternative that is non-food-chain-based, fully bio-based and capable of performing under real production conditions,” Metinöz says.

That approach was both technically bold and foundational for long-term transformation, she reflects. In the global tyre and rubber raw materials market, Skyhem identified strong demand for solutions that transcend sustainability claims – solutions that are scalable, performance-driven and fully compliant with regulatory requirements.

“Being part of the development journey of Ecosky process oils represents, for me, an opportunity to contribute to a transformation that delivers real and measurable impact. The strong interest and positive feedback we are receiving today from markets around the world clearly confirm the tangible nature of this need. With Ecosky-3103, my belief continues to grow that we are not simply introducing a new product but actively contributing to a lasting and meaningful shift in the tyre industry’s sustainability transition,” Metinöz explains.

GREEN CHEMISTRY AS FOUNDING PRINCIPLE

From the very beginning, Skyhem was a company with a clearly defined vision. The company was founded in 2023 with a strong emphasis on green chemistry, but for Skyhem, this has never been merely a marketing label.

“For us, green chemistry has never been a marketing label but rather the starting point of all decision-making processes. Already at the foundation stage, key questions – such as which raw materials to work with, which markets to address and which regulations to be prepared for – were shaped in line with this vision,” Metinöz says.

At the same time, having a clear vision does not mean remaining static, she notes. As Skyhem has grown, the company’s vision has evolved into something more tangible, more measurable and more industrially grounded. In the initial phase, the primary focus was to demonstrate that a fully bio-based, non-food-chain process oil was technically feasible.

“Today, that vision has progressed to delivering solutions that are tested on a global scale, compliant with regulatory frameworks and applicable at an industrial scale,” Metinöz says. One of the most important lessons Skyhem has learned throughout this journey is that sustainability only creates real value when it is addressed alongside performance, process compatibility and scalability.

“As a result, Skyhem’s vision has become even more focused with growth: not simply to develop sustainable products but to contribute to the transformation of the tyre and rubber industry through practical, reliable and performance-driven solutions,” Metinöz says.

TURNING GEOGRAPHY INTO ADVANTAGE

Turkey is not traditionally viewed as a centre for bio-based process oil innovation, yet Skyhem has successfully turned this into a strategic advantage rather than a limitation. Although Turkey has a strong chemical engineering infrastructure and technological capability, process oils used in the tyre industry have historically been fully imported.

Through its green journey, Skyhem has successfully changed this landscape, establishing itself as Turkey’s first domestic producer in this field. The company’s process oils are 100 percent bio-based, outside the scope of the EU Deforestation Regulation and strictly non-food-chain.

“Our process oils, which are 100 percent bio-based, outside the scope of EUDR and strictly non-food-chain, represent a milestone not only for Turkey but also at a global level. This achievement clearly demonstrates that Turkish engineering can compete internationally in the fields of sustainability and advanced materials technology,” Metinöz says.

Turkey’s strategic geographic position, connecting Europe, Asia and Middle East, provides Skyhem with a significant advantage in accessing global markets efficiently and reliably. Today, with its current production capacity, Skyhem has the potential to meet approximately 41 percent of Turkey’s total process oil demand.

“Taken together, these elements show how Skyhem has reshaped perceptions in this field by transforming Turkey’s geography and engineering strength into a strategic competitive advantage,” Metinöz says.

THE CONSCIOUS CHOICE OF BIO-BASED MATERIALS

Skyhem claims to be Turkey’s first producer of fully bio-based process oils. The decision to move away entirely from petroleum-derived oils was not a necessity for the company but rather a conscious identity choice.

“The decision to move away from petroleum-derived process oils was not a necessity for Skyhem but a conscious identity choice. From the very beginning, Skyhem positioned itself not simply as an alternative to existing systems but as a pioneer of more nature-friendly, greener and long-term sustainable solutions,” Metinöz explains.

This mindset allowed the company to place environmental impact and responsibility at the core of its product development process. From a technical perspective, the main challenge was to achieve critical performance parameters – such as process compatibility, viscosity control, ageing behaviour and compound stability – using bio-based raw materials in tyre and rubber manufacturing.

Ensuring that Ecosky-3103 could be used alongside petroleum-based reference oils without creating compatibility issues on existing production lines was one of Skyhem’s key priorities. In this context, the hybrid use flexibility of Ecosky-3103 has proven to be a significant advantage.

“When required, Ecosky-3103 can be integrated into formulations together with petroleum-based process oils, offering manufacturers a gradual and controlled transition path. This approach makes the sustainability transition more manageable and lower-risk while fully preserving production continuity,” Metinöz says.

From a business perspective, the main challenge was earning market trust in a sector that has historically viewed process oils as an immutable component. Thus, highlighting environmental advantages alone was insufficient.

“It was essential to demonstrate – under real production conditions – that Ecosky-3103 is a scalable, consistent and reliable long-term solution. Today, the fact that leading global tyre and rubber manufacturers have begun to adopt Ecosky-3103 in their production clearly validates this approach. The ability of our products to remain fully compatible with petroleum-based systems while delivering sustainability without compromising performance has positioned Skyhem as a trusted solution partner in the market,” Metinöz says.

RECOGNITION AND DIFFERENTIATION

Ecosky-3103 has been shortlisted for the 2026 TTI Awards for Materials Innovation. In Metinöz’s view, what makes this product stand out in an increasingly crowded sustainability-driven market is not only its bio-based nature.

“What differentiates Ecosky-3103 is not only that it is bio-based but also that it is a non-food-chain, EUDR-exempt process oil produced at an industrial scale under a zero-waste principle. It can be directly integrated into existing production lines or applied through partial substitution, and its consistency has been proven under real production conditions. Skyhem’s approach has been to position sustainability not as a statement but as an industrially applicable reality,” Metinöz explains.

PERFORMANCE AGAINST ESTABLISHED OILS

From a tyre manufacturer’s perspective, the critical question is how Ecosky performs compared with established low-PAH and TDAE oils across filler dispersion, rolling resistance, durability and ageing behaviour. In studies conducted by Skyhem, Ecosky-3103, compared with TDAE reference oils, demonstrates predictable, consistent behaviour in terms of filler dispersion and compound homogeneity.

“In both tread and non-tread applications, mechanical properties are fully maintained; parameters such as elongation at break and tensile strength show equivalent and, in some cases, improved values. From a dynamic performance perspective, tan δ and E* measurements indicate that Ecosky-3103 offers controllable effects on rolling resistance and low-temperature performance, depending on formulation design,” Metinöz says.

With regard to ageing behaviour and process stability, Skyhem’s evaluations show that the glass transition temperature (approximately -65°C) remains stable, viscosity levels are consistent across production batches and the flash point lies within a highly acceptable range for industrial use.

“Overall, Ecosky-3103 can be considered an alternative that preserves the performance framework manufacturers are accustomed to when compared with TDAE and low-PAH oils while offering additional functional potential in certain applications. This positions Ecosky-3103 as a technically reliable process oil capable of supporting sustainability objectives without compromising performance,” Metinöz explains.

ZERO-WASTE PRODUCTION IN PRACTICE

Zero-waste production is central to Skyhem’s positioning. At Skyhem, the zero-waste approach is embedded as a core design criterion of the production system. From the product development stage onwards, all input raw materials are selected and used to minimise by-product formation and to allow materials to be recovered and reutilised within the process.

“As our facility is designed according to a closed-loop principle, potential side streams are systematically reintegrated into the production process,” Metinöz says. On the supply side, Skyhem exclusively sources non-food-chain raw materials from ISCC-certified sustainable sources, ensuring environmental impact and traceability remain fully under control.

From an energy perspective, the on-site solar power plant at Skyhem’s chemical facility plays a key role in operations. This system enables the company to cover a significant portion of its energy demand for production from renewable sources. In parallel, all production processes are continuously optimised with a strong focus on energy and resource efficiency.

“Through this integrated approach, the zero-waste principle at Skyhem goes beyond an environmental commitment and becomes a measurable and operational system, directly linked to product consistency, process efficiency and industrial sustainability. Looking ahead, we aim to convert 100 percent of our production energy demand to green energy via solar systems by 2030,” Metinöz says.

THE IMPORTANCE OF THIRD-PARTY VALIDATION

Skyhem has achieved REACH registration and received an EcoVadis Bronze Medal. For global OEMs and Tier-1 suppliers, such third-party validations have become fundamental trust-building elements rather than mere requirements.

“For global OEMs and Tier-1 suppliers, sustainability is no longer based on declarations but on verifiable and auditable systems. For this reason, third-party validations such as REACH registration and EcoVadis assessments have become fundamental trust-building elements rather than mere requirements,” Metinöz says.

EUDR COMPLIANCE AND NON-FOOD-CHAIN MATERIALS

Compliance outside the EU Deforestation Regulation and the use of non-food-chain raw materials are factors that Skyhem often highlights. These factors are becoming decisive for customers today for specific reasons.

With the introduction of EUDR, it is no longer sufficient for raw materials to be sustainable; their origin must also be traceable, verifiable and free from regulatory risk. For this reason, solutions that fall outside the scope of EUDR offer a significant advantage, particularly for manufacturers operating on a global scale, by reducing both operational and commercial risks.

“Raw materials that do not interact with the food chain have likewise become an increasingly important ethical and structural criterion in sustainability discussions. Solutions that do not compete with food resources are preferred due to their higher social acceptance and long-term supply security,” Metinöz says.

When these two aspects are combined, customer sustainability is no longer only about environmental benefits but also about regulatory compliance, supply continuity and forward-looking risk management.

“Skyhem’s approach is built precisely on this understanding – treating sustainability not as a short-term advantage but as a long-term, secure and industrially viable solution,” Metinöz explains.

THE ELECTRIC VEHICLE TRANSFORMATION

Demand for sustainable materials is accelerating, particularly with the rise of electric vehicles. The shift towards EV tyres is reshaping requirements for process oils in fundamental ways.

Metinöz believes that the transition to electric vehicles has already begun to gradually and fundamentally reshape tyre performance expectations. EV tyres operate under much tighter tolerances due to higher torque, increased vehicle weight and stricter noise requirements. As a result, parameters such as rolling resistance, wear resistance and compound stability have become even more critical.

“This shift means that process oils can no longer function merely as softeners; they must act as components that precisely tune the dynamic behaviour of the compound. Consequently, these new requirements place greater emphasis on controlled rheological behaviour, the retention of properties after ageing and predictability across formulations,” Metinöz says.

At the same time, EV manufacturers’ sustainability targets require greater transparency and measurability of the environmental impact of all raw materials used. Within this context, process oils for EV tyres are now expected to meet not only technical performance criteria but also low environmental impact, regulatory compliance and long-term supply security.

“At Skyhem, our approach is built on addressing these multi-dimensional requirements simultaneously, developing solutions that are well aligned with the needs of next-generation tyre applications,” Metinöz says.

GLOBAL VISIBILITY AND COLLABORATION

Skyhem has been highly visible at global tyre industry events. Beyond branding, these platforms contribute significantly to collaboration and product development. At Skyhem, the primary focus is to represent the country in the best possible way within the industry.

“For us, global industry events are not merely platforms to increase brand visibility but environments where technical feedback, mutual learning and collaborative development actively take place. Through these events, we have the opportunity to directly understand the real expectations, technical challenges and regulatory priorities of manufacturers across different regions,” Metinöz explains.

At the same time, such platforms enable potential collaborations to take shape early. From Skyhem’s perspective, the real value lies not in promotion but in fostering a constructive dialogue where the right technical questions are asked and common solution areas are clearly identified.

“This approach supports our products in reaching the market more efficiently and in a more robust manner,” Metinöz says.

CO-DEVELOPMENT WITH MANUFACTURERS

Skyhem’s approach to innovation is highly collaborative. At Skyhem, innovation is not an R&D activity carried out independently of customers but a development process that progresses alongside manufacturers.

“Our work with tyre and rubber producers is based on evaluating products under real formulations and actual processing conditions. All technical feedback we receive is directly incorporated into product improvement. Through this approach, Skyhem’s R&D is positioned not merely as a raw material supplier but as a technical partner delivering practical, reliable solutions aligned with real production requirements,” Metinöz says.

BALANCING GROWTH WITH CULTURE

As a young company scaling internationally, Skyhem faces the challenge of balancing rapid growth with maintaining a strong sustainability-led culture internally. At Skyhem, growth has never been treated as a goal in itself; how the company grows has always been more important than how fast it grows.

“Our sustainability approach is not a policy added later on but a culture that has been embedded into our decision-making processes since the company’s foundation. To be candid, this mindset and philosophy have played a key role in keeping our direction clear throughout our growth journey,” Metinöz says.

As Skyhem grows, the primary focus is to avoid compromising technical discipline and sustainability standards. The company applies the same principles consistently across product development, sourcing and production and approaches new markets and partnerships within this framework.

Metinöz explains, “As a result, growth does not put pressure on our system; instead, it becomes a controlled process that strengthens our existing structure. For us at Skyhem, maintaining a strong sustainability culture depends on having teams that fully understand the processes and on clearly questioning the technical and environmental implications of every decision. This approach ensures that, as the company grows, the culture does not weaken but rather becomes more structured and institutionalised.”

FUTURE GROWTH OPPORTUNITIES

Looking ahead, where does Metinöz see the strongest growth opportunities for Skyhem – in terms of markets, applications or next-generation materials?

“I see the strongest growth opportunities for Skyhem in application areas where sustainability is no longer a choice but a mandatory technical requirement,” Metinöz says. “In the tyre and rubber industry in particular, markets where regulatory pressure and performance expectations are increasing simultaneously show a natural alignment with Skyhem’s solution approach.”

From an application perspective, high-performance tyres, electric vehicle applications and speciality rubber compounds are among the company’s key focus areas. In these segments, process oils are no longer merely auxiliary components; they have become elements that precisely control compound behaviour, further increasing demand for technically robust and sustainable solutions.

“With regard to next-generation materials, Skyhem’s growth strategy is based not on a single product but on a modular and evolvable technology platform. This approach allows us to develop solutions that can be adapted to different markets and applications,” Metinöz explains.

Geographically, Skyhem sees controlled, high-quality growth opportunities particularly in Europe, where regulations are clearly defined and sustainability targets are firmly established.

“In short, for Skyhem, growth is not about volume expansion but about progressing with the right technical value in the right applications,” Metinöz says.

DEFINING SUCCESS

Finally, how would Metinöz define success for Skyhem Kimya over the next five to 10 years, both as a business and as a contributor to the tyre industry’s transition towards more sustainable materials?

“For Skyhem, I define success not solely by growth figures but by the lasting impact we create within the industry. Today, Skyhem has reached a position as a company delivering technically reliable solutions with measurable sustainability and proven industrial applicability,” Metinöz says.

Within the next five years, Skyhem aims to establish strong R&D centres in four different regions. Through these centres, the company plans to provide more effective technical support to Ecosky-3103 users while also developing its own compounds at laboratory scale to evaluate product performance directly at the application level.

At present, Skyhem serves four industries and is actively advancing sustainable, bio-based product development across multiple sectors. Looking further ahead, over the next 10 years, the company aims to evolve into an integrated chemical manufacturing structure and reach a broader customer base through new product classes.

“As a business, we measure success through consistent growth, stable product quality and the ability to build long-term partnerships,” Metinöz says. “In this context, positioning Skyhem not merely as a raw material supplier but as a strategic technical partner for our customers is a critical benchmark for us.”

From an industry perspective, Skyhem sees true success in enabling sustainable materials to move beyond niche applications and become a natural part of mainstream production processes.

“At Skyhem, our objective is to demonstrate – on a lasting basis – that sustainability does not conflict with performance but rather, when addressed through the right engineering approach, becomes a driver that moves the industry forward,” Metinöz concludes.

India’s rapidly expanding fleet ecosystem faces a persistent paradox with rising logistics demand alongside shrinking profit margins.

As operators grapple with fuel costs, compliance burdens and operational inefficiencies, tyres, often the second-largest fleet expense, are emerging as a critical lever for efficiency. Integrated tyre management solutions backed by data analytics and vendor-led lifecycle management are increasingly being viewed as a potential turning point to improve uptime, extend tyre life and stabilise operating costs across fleets.

India’s fleet ecosystem broadly includes long-haul commercial truck, last-mile delivery, urban distribution, passenger transport fleets and emerging electric vehicle fleets.

Growth in e-commerce, logistics modernisation and digital technologies such as telematics and AI-based route optimisation are reshaping fleet operations. Last-mile delivery fleets, often using small commercial vehicles, two-wheelers and EVs, are expanding rapidly to support online retail and quick-commerce models.

Amidst these growth drivers, integrated tyre management solutions and educating fleet owners might just be the hail Mary as the sector consistently grapples with the challenge of increasing profit margins and reducing operational costs.

The Asia-Pacific tyre fleet management solutions market was valued at USD 2.2 billion in 2024, riding at a compound annual growth rate of 9.2 percent as per data by Strategic Revenue Insights.

Speaking exclusively to Tyre Trends on avenues that can increase cost and operational efficiency for fleets, Reema Kothari Jogani, Director, Reema Transport, noted, “The sector requires education on different aspects of operations and fleet tyre management solutions powered by new-age technology. The more we grow on education, the more we can streamline operations and reap the most of current market trends and demand.”

According to Jogani, tyres are the second most costly investment for fleets and companies require tyre management solutions that can increase its entire service life. “We currently operate on a cost-per-kilometre (CPK) model with a vendor. Under this arrangement, we provide them with the kilometre requirement per month and they manage the entire tyre lifecycle,” she said.

This approach has simplified operations for the company as the executive claimed that tyres can run for more distances but fleets often don’t achieve it because performance depends heavily on factors such as driving behaviour and road conditions.

She noted that engagement with tyre industry vendors has recently increased, improving access to data and making tyre management easier. Earlier, there was little structured support despite tyres being the second-largest fleet cost after fuel, so tyres were managed in-house. Later, the company partnered with specialised vendors for professional management.

“Today, detailed data helps analyse tyre wear, identify whether damage is caused by driver behaviour, road conditions or manufacturing issues and determine optimal replacement timing. Such insights also create learning opportunities for fleet operators,” said Jogani.

She believes that technology combined with skilled manpower to interpret data is the future, though priorities differ by company. “Some focus on AI for vehicle utilisation, while others prioritise tyre management. Overall, the evolution from basic GPS tracking to advanced tyre and fleet analytics has improved driver education, fuel efficiency, mileage and safety,” she said.

HURDLES REDUCING

Tyre management solutions have historically remained a largely manual and reactive process. Kothari suggested that the industry is now gradually moving towards digital tyre health management systems, but the transition is still uneven.   

“While technologies such as telematics, RFID tagging and Bluetooth-enabled sensors are becoming more common, their effectiveness ultimately depends on three factors viz-a-viz driver awareness, reliable data and integrated management platforms,” she noted.

One of the most widely acknowledged benefits of tyre management systems is improved fuel efficiency through lower rolling resistance. Poorly inflated or poorly maintained tyres increase resistance against the road surface, forcing vehicles to consume more fuel.

“Fleet operators recognise this link, but many say it remains difficult to translate tyre performance improvements into clear financial gains within their profit-and-loss statements,” noted Jogani.

In theory, telematics platforms can track parameters such as tyre pressure, temperature and kilometres travelled. However, tyre monitoring systems often operate separately from fuel management software.

This makes it challenging for fleet operators to directly correlate tyre condition with fuel consumption. As a result, the financial benefits of tyre management tend to appear indirectly through longer tyre life, reduced breakdowns and fewer vehicle stoppages rather than through clearly quantified fuel savings.

“Another key pillar of tyre management is driver participation. Despite the growing use of sensors and digital monitoring systems, fleet owners emphasise that drivers remain the first line of defence when it comes to tyre safety and performance,” informed Jogani.

She added that many companies have begun investing in structured driver education programmes, encouraging drivers to conduct daily visual inspections and basic checks before starting a trip.

Training typically focuses on recognising abnormal tyre wear, maintaining correct pressure and avoiding harsh driving behaviour that accelerates tyre degradation.

“However, implementing such training across large fleets can be difficult. Indian transport networks often involve drivers operating across multiple states, languages and levels of formal education. This makes consistent driver training programmes a challenge,” she noted.

Some fleets are experimenting with simplified training modules and incentive schemes that reward drivers for maintaining tyre health and reducing wear.

HELPING HAND

Tyre manufacturers are also playing a more active role in supporting fleet operators. Several companies now provide tyre health audits, driver training workshops and digital tyre management tools as part of their service offerings.

In some cases, dedicated engineers visit fleet depots to analyse tyre wear patterns and recommend corrective measures. Yet Jogani noted that these services often remain focused on tyre performance rather than offering a fully integrated operational view that connects tyres with fuel usage, driver behaviour and route conditions.

“One of the most persistent challenges in tyre fleet management today is the disparity between driver-reported information and digital platform data. Fleet owners frequently encounter differences between kilometres logged by drivers and those recorded by telematics or tyre management systems. These discrepancies complicate tyre lifecycle analysis and make it difficult to accurately calculate cost-per-kilometre metrics,” she explained.

The problem is often compounded by the use of multiple independent software systems that do not communicate with each other seamlessly.

This shift is gradually transforming workshop practices from scheduled inspections to predictive maintenance. Instead of identifying tyre issues only during routine checks, fleets can intervene earlier when digital alerts signal potential problems.

COST CENTRE TO STRATEGIC ASSET

When Jogani began her company’s operational portfolios, one gap stood out. Tyres were being managed without a dedicated system.

“Vendors frequently claimed their tyres could run beyond 100,000 kilometres. In practice, however, the fleet was seeing lifespans closer to 70,000–80,000 kilometres. The discrepancy prompted a deeper operational review,” she said.

Even before adopting a formal tyre management programme, the company had implemented a checklist-based inspection system. The shift came when tyre suppliers began introducing CPK model, under which vendors assume responsibility for tyre performance and lifecycle management.

Under the arrangement, the vendor becomes responsible for ensuring tyre performance. The model also exposed Jogani to practices that were previously unfamiliar, such as checking tyre pressure, tyre condition, oil levels and coolant status.

“Professional management of these processes, from rotation schedules to monitoring, significantly reduced operational complexity for us,” she added.

“When someone manages all these aspects professionally, life becomes much easier for a transporter,” Jogani said. “Of course, such services come at a cost because vendors invest manpower and technology into the process.”

Still, she believes adoption will expand as transporters better understand the financial and operational benefits.

In terms of fleet downtime, however, tyres are rarely the primary cause of breakdowns when properly maintained.

“In my experience, breakdowns rarely happen purely because of tyres, provided they are well maintained and drivers are trained properly,” she said. “Most tyre-related problems occur due to poor road conditions, which may cause punctures.” 

For Jogani, tyres have evolved from a consumable to a strategic asset.

VENDOR-LED ECOSYSTEMS

Today, most tyres in the company’s fleet are managed by vendors.

However, new vehicles initially run on the tyres supplied by the manufacturer before being gradually integrated into the vendor programme.

“For new vehicles that we add to the fleet, they initially operate with the tyres supplied by the manufacturer and are not immediately part of the vendor programme,” Jogani said.

The system has been in place for roughly two to two-and-a-half years and has already improved tyre productivity.

While the company now pays a slightly higher premium, the operational benefits outweigh the cost.

“The entire tyre management responsibility now lies with the vendor,” she said. “They ensure that tyres are maintained properly and perform according to the agreed parameters.”

Previously, the fleet often lost value because tyres did not reach their expected lifespan.

Isolating the precise financial impact remains difficult, however, because other costs have also risen.

“Vehicle prices have gone up, compliance requirements like AIS-140 have added costs and operational expenses have increased overall,” she said. “Because of these multiple factors, it becomes difficult to isolate the exact savings purely from tyre management.”

DIGITAL ADOPTION

Adoption of digital tyre management tools such as tyre pressure monitoring systems (TPMS) remains uneven across the logistics sector.

“If you ask me honestly, some companies are adopting these systems, especially larger fleets,” Jogani said. “A few mid-sized companies also have in-house maintenance teams that manage tyre monitoring.”

Cost considerations remain a major barrier. “Fuel is a major cost component and tyres are the second major cost. At the same time, safety requirements are increasing,” she said.

From a transporter’s perspective, the return on investment can appear uncertain.

“Another challenge is behavioural,” Jogani said. “Even if technology like TPMS helps drivers save fuel or improve efficiency, not all drivers may be willing to openly share that benefit with fleet owners.”

Integration is another concern. If every tyre supplier operates its own digital platform, complexity rises rapidly.

“If I have a fleet of 100 vehicles and they are managed by one vendor who provides a single dashboard with analytics for all tyre data, it makes sense,” she said. “But if I have to deal with multiple vendors and multiple platforms, the cost and complexity increase significantly.”

An integrated tyre management platform, she added, would provide the most effective solution.

Transporters also need clearer demonstrations of value. Moreover, affordable pricing models could accelerate adoption, particularly among mid-sized operators.

DELEGATING PROCUREMENT

Operating across western, central and southern India exposes fleets to widely varying road conditions and temperatures. Earlier, the company tailored tyre procurement to specific routes.

“Because our operations involve life-saving logistics, safety has always been the top priority,” Jogani said. “For that reason, we rarely opted for retreading or remoulding.”

“Since the vendor is responsible for tyre performance and lifecycle management, we have largely left these decisions to them,” she added.

Under the current arrangement, retreaded tyres are generally not used in the fleet.

“For our operations, factors such as durability, heat resistance, load-carrying capacity and tread design are extremely important,” Jogani said.

Vendor representatives are stationed at company branches to monitor vehicles continuously. Monthly billing is based on usage data, while inspections track tyre condition, alignment and kilometres covered.

“Because of this constant monitoring, tyre management has become much easier for us,” she said.

The vendor also plays an advisory role, analysing operational data and providing feedback on driving patterns.

Furthermore, comparing performance data between drivers operating similar vehicles helps improve training and accountability.

On the other hand, small fleet operators often struggle to adopt tyre management technologies due to cost constraints, making collaboration with larger logistics ecosystems crucial.

According to Jogani, smaller fleet owners attached to networks like Reema Transport can access systems they might not afford independently. For these operators, keeping vehicles running is critical because downtime directly halts income and affects their ability to service loans.

As a result, adoption of tyre management solutions is likely to be gradual, supported by education on long-term cost benefits and collaborative industry models.

On the other hand, Sharma believes that it is relatively easier for an established off-highway tyre specialist to expand into the B2C or on-highway tyre segment than it is for traditional consumer tyre companies to build the capabilities needed for off-highway applications.

To ensure that its leadership in off-highway tyres remains intact, the company has ring-fenced the two businesses. The off-highway and on-highway operations will run independently with a completely separate team dedicated to the consumer tyre segment.

The distribution strategy will also be different. “The on-highway business will have its own distributors and channel structure and we will not rely on the existing off-highway distribution network for this segment,” he said.

In effect, everything from organisational teams to distribution channels has been designed to remain distinct while still allowing the company to selectively leverage complementary strengths where it makes strategic sense.

UNCHARTED TERRITORIES

Entering the B2C tyre space in India is widely seen as challenging, as the market is dominated by a handful of established players and is extremely price competitive.

Alluding to how the company will navigate through such uncharted territories, Sharma said, “While the Indian tyre market is indeed dominated by major players, that concentration also indicates limited brand diversity rather than excessive competition. This suggests there is still room for credible new entrants that can provide customers with more options.”

Sharma also believes that the company enters the market with an advantage because it already has a well-recognised brand presence in India. It is not a completely new or unknown player entering the country for the first time.

“Given that roughly 90 percent of the market is served by only a few companies, we see an opportunity to gradually establish ourselves by offering reliable products and expanding customer choice,” noted Sharma.

Also, India is one of the largest markets in the world for two-wheeler tyres. The company’s long-term strategy is to eventually address multiple segments, but the initial focus will be on high-volume categories.

“Building a strong distribution network requires products that move quickly and consistently through the market, making high-volume segments the logical starting point. The two-wheeler tyre market in India is largely volume-driven with enormous demand levels. Success in this segment requires deep market penetration, strong brand awareness and the ability to deliver high-quality products consistently,” explained Sharma.

As a result, the company plans to begin with two primary product categories viz-a-viz a pure on-road tyre and an on-off-road tyre. “Within these categories, several sub-segments will be introduced to address different consumer needs. This multi-product approach is designed to help build the distribution network, strengthen brand visibility and establish our operating model in the market. Additional product lines will be introduced gradually once this foundation is established,” contended Sharma.

He also believes there is a meaningful opportunity to bring more innovation to better serve Indian consumers. From a consumer perspective, introducing fresh breakthroughs in two-wheeler tyre technology could unlock new levels of performance, safety and value in the years ahead.

He believes the market is ready for new products with improved performance characteristics and superior attributes. Increased competition can drive innovation and ultimately benefit consumers.

DISTRIBUTION DISRUPTOR

The biggest challenge in the two-wheeler tyre business is reach and market penetration, noted Sharma. Unlike other tyre segments that rely heavily on specialised dealers, two-wheeler tyres are frequently purchased from nearby mechanics or small retail outlets because customers typically treat them as basic, everyday products rather than highly technical components.

He added that most riders are unwilling to travel long distances to a specialised tyre store for a replacement. This has created a highly dispersed retail ecosystem with multiple types of sellers. Over time, the market also adopted a distributor-led model that proved commercially successful and helped some leading companies expand their reach significantly.

However, that model also has weaknesses. “Many companies operate both legacy dealer networks and distributor systems simultaneously, which can lead to channel overlaps. In practice, this often results in product infiltration between territories, price inconsistencies across outlets and confusion for end customers,” stated Sharma.

He added, “Entering the market later provides an advantage because we do not carry the burden of legacy distribution structures. Instead, we plan to implement a pure distribution model from the outset. Each distributor will operate within a clearly defined territory with strong protection from channel overlap, allowing them to invest confidently in building their regional market.”

According to Sharma, this structure has already generated strong interest among distributors. Many see the opportunity as a long-term entrepreneurial venture where they can build a stable and scalable business.

He believes that this model will help the company challenge some existing distribution norms not only in two-wheelers but eventually in other tyre segments as well.

REGULATORY RESILIENCE

On the other hand, Sharma noted that the commercial tyre market must be viewed within the context of rapidly evolving regulations and policy direction. India’s decision to move directly from Bharat Stage IV to Bharat Stage VI emission norms illustrates how quickly regulatory frameworks can evolve. Discussions around future stages, along with policies such as Extended Producer Responsibility (EPR) for tyres, are reshaping how companies must approach the market.

At the same time, government policy clearly indicates a long-term transition towards greener mobility.

“We believe retreading should play a far larger role in the tyre lifecycle. Retreading extends the usable life of tyres, offering both economic benefits for fleet operators and environmental advantages for the broader ecosystem. Yet, despite its logical benefits, retreading volumes in India have actually declined in recent years,” noted Sharma.

The company intends to challenge this contradiction by promoting retreading more actively and working with customers who share the same long-term vision. Education and engagement will form an important part of this strategy.

Another factor influencing product strategy is the increase in vehicle loading across the trucking sector. “Higher loads often cause tyre wear patterns that reduce retreadability, highlighting the need for better product specifications,” said Sharma.

Rather than competing directly in the most crowded segments, the strategy is to align with emerging market trends, promote technically appropriate products and raise awareness about more sustainable tyre usage practices.

RETREADING PARADOX

Sharma said Indian consumers are willing to pay more when they see value, as they tend to evaluate purchases rationally, with fleet operators focusing on total cost of ownership rather than just the upfront price.

He argued that taxation alone cannot explain the recent slowdown in retreading. Earlier, GST on new tyres stood at around 28 percent and has since been reduced to roughly 18 percent, while retreaded tyres are also taxed under the GST framework.

“The decline in retreading activity has been taking place for nearly three years, which suggests that GST changes alone cannot explain the trend,” Sharma said, noting that a large portion of the business historically operated in the informal sector. “Taxation may therefore be a convenient explanation, but it does not fully address the deeper structural issues affecting the market.”

According to him, the deeper issue lies in a structural conflict within the tyre industry, where promoting retreading aggressively could reduce demand for new tyres.

“Many manufacturers have experimented with retreading programmes or franchise models, but they rarely pursue them with the level of commitment required to develop the ecosystem fully,” he noted.

Sharma believes this gap creates an opportunity to engage with fleet operators and promote better tyre lifecycle management.

“With improved highway infrastructure, higher vehicle speeds and evolving regulatory expectations, better utilisation of retreading could benefit both the industry and the environment,” he added.

The company plans to focus on casing preservation and customer education while working with reliable regional retreaders to encourage better tyre lifecycle practices.

DEVELOPMENT AND SUPPLY

BKT already operates advanced indoor tyre testing equipment and initially utilised some of the testing infrastructure that had been developed for its off-highway tyre business while additional machines were being installed. It now has a strong indoor testing setup and continues to expand and upgrade this infrastructure to support product development.

It has also earmarked an INR 35 billion investment for expanding its on-highway tyre portfolio. While Sharama didn’t disclose a detailed breakdown, he informed that the investment will be distributed across the different business segments including off-highway tyres, on-highway tyres and carbon black based on strategic requirements.

He also said that if future growth plans require establishing technical centres or partnerships in overseas markets, the company remains open to taking those steps.

For the export markets, for the first two years, the focus will remain on building the product portfolio and preparing the range for international markets. A broader market launch through the global distribution network is expected to follow about two to three years later.

Commenting on the opportunities and challenges that the company will face in achieving the target of INR 230 billion in revenue from the current INR 100 billion, Sharma said, “Our core off-highway tyre business continues to grow strongly, particularly in India. Slower growth in certain international markets in recent years has been influenced more by geo- political developments rather than by any structural weakness in demand.”

“If those external conditions stabilise, we believe that the core business remains on a solid growth trajectory. India, in particular, continues to be a strong growth market,” he added.

Each business segment operates with a distinct strategy, and based on internal planning, the company believes achieving roughly 2.2 times growth over the next few years is feasible.

At the same time, Sharma viewed the revenue target as intentionally ambitious. “Setting a bold goal helps ensure that strategies are clearly defined, documented and communicated across the organisation so that teams understand exactly what must be done to achieve it,” he stated.

Metso has announced the appointment of Jonathan Allen as its new Chief Growth Officer, effective 1 May 2026. In this role, he will oversee the Business Growth function, which includes Strategy, Mergers & Acquisitions, AI, Data & Analytics, Sustainability, Safety, Quality, Communications & Public Affairs, Marketing & Brand and Corporate Procurement. Allen will join the Metso Leadership Team and report directly to President and CEO Sami Takaluoma. He replaces Claudia Genin, who is set to leave the company by August 2026, as previously disclosed.

A longstanding member of the Metso team since 2005, Allen most recently served as Senior Vice President for the Grinding, Bulk, Pyro & Smelting business line and was also part of the Services business area leadership group. His career at Metso spans over two decades, during which he has held various leadership positions in both France and United States.

Allen holds a bachelor’s degree in mechanical engineering from Penn State University, US. His extensive operational and international experience within the company positions him well to lead Metso’s growth and strategic initiatives going forward.

Sami Takaluoma, President and CEO, Metso, said, “Jonathan’s extensive experience at Metso, a deep understanding of our industry and his proven leadership in business strategy execution and growth make him exceptionally well suited to lead our Business Growth function. I am confident that, under his guidance, we will continue to advance our ‘We go beyond.’ strategy and further strengthen Metso’s growth and success.”

Allen said, “Over the past two decades, I have witnessed our company’s remarkable progress, and I look forward to collaborating across our global teams to drive our strategy further and ensure that we continue to deliver exceptional value for our customers and stakeholders. Together, we will build on our strong foundation, accelerate our transformation and support Metso’s vision to be the industry leader.”

PRINX CHENGSHAN has achieved another major milestone in its direct sales and original equipment business with the selection of its PRINX AQUILA PRO tyre as original equipment fitment for the NEVO Q05, a global high-volume model from Chang'an Qiyuan.  The pairing made a notable impact at the 47th Bangkok International Motor Show, where the vehicle’s appearance drew widespread international attention.

The PRINX brand, representing the mid-to-high-end segment under PRINX CHENGSHAN, centres its approach on using tangible technology to enhance mobility. The AQUILA PRO tyres delivered for Chang'an Qiyuan combine efficient braking enabled by advanced structural engineering with EU Class A rolling resistance and responsive handling. This performance profile directly supports Chang'an Qiyuan’s commitment to a superior all-around user experience, reinforcing a partnership aimed at building a refined mobility ecosystem.

The Bangkok exhibition also highlighted the growing market presence of PRINX across multiple platforms. Both the MG5 PRO Thai Version and the MG S5 EV Thai Version run on the AQUILA PRO tyres, gaining traction in Thailand through accessible pricing and strong technical capability. Separately, the Ora 5, an all-electric A-segment SUV, debuted globally in Bangkok equipped across its lineup with the PRINX XNEX SPORT EV tyres, underscoring its blend of design, intelligence and global readiness.

With a rapidly evolving global network encompassing two major R&D centres, four technology centres and three smart manufacturing bases, PRINX CHENGSHAN has steadily advanced its product innovation and direct sales channels. The company’s forward-looking strategy centres on a products plus services model, integrating quality manufacturing with full lifecycle support to drive green and intelligent mobility. Through close collaboration with partners, it seeks to foster sustainable industry development and bring the strengths of China’s intelligent manufacturing to a broader global audience.