A study of the 2024 Global Tire Report recently released by Tire Business has been a gratifying experience. From a turnover of USD 93 billion in 2004 to USD 192 billion in 2023, the Global Tyre Industry has added nearly 100 billion dollars in the last 20 years, which can only be termed significant. After a flat growth in 2022, the industry witnessed a resurgence in 2023 with a growth of 4 percent to reach the highest-ever turnover of USD 192 billion, breaching the earlier high of USD 189 billion achieved way back in 2012. 

The number of global tyre plants has gone up consistently from 497 in 2012 to 573 in 2022 to 584 in 2023. Michelin, Bridgestone, Goodyear and Continental continue to be the four largest global tyre majors for several years now. Interestingly, all these four have a manufacturing presence in India too, making the Indian market a vibrant one.

Asia's dominance continues with the presence of 360 tyre plants (62 percent of total) in the continent. A closer study reveals that India has the second largest number of tyre plants in the world (65) only after 156 of China. With nine plants, MRF holds the second rank in Asia in terms of number of plants after Bridgestone’s 23.

 What’s striking is the steady march of Indian tyre companies. Yet again, five Indian companies find pride of place in the top 30 global companies in the world. These include Apollo, MRF, JK, CEAT and BKT, in order of ranking.

Moreover, Indian tyre companies have been moving up the charts. In the last 10 years, MRF has moved up one rank, Apollo has moved up three ranks. In the same period, JK has moved up six ranks, while CEAT has moved up by a full 10 ranks. BKT has made an entry in the top 30 by moving up 12 ranks in the last 10 years.

What has propelled the upward journey of Indian tyre majors is the steady increase in tyre manufacturing footprint in the country and expansion in exports. In the true spirit of Make in India and Atma Nirbhar Bharat, tyre production in India has nearly doubled in the last 10 years. Industry turnover has gone up from INR 450 billion to INR 900 billion during this period and is expected to conclude the ongoing year with a turnover of INR 1 trillion.

Tyre exports too have nearly doubled in the last five years, from INR 128.44 billion in FY20 to INR 230.73 billion in FY24. This expansion in exports underscores India's growing role as a player in the global tyre supply chains, contributing significantly to meeting international demand.

Indian companies rank amongst top five in terms of the number of plants manufacturing different categories of tyres. In the case of TBB, India continues as a major hub of manufacturing, with JK, MRF and Apollo counting amongst the top five. Amongst motorcycle plants, MRF and CEAT are in the top five. BKT is in the top five when it comes to OTR and industrial tyre plants. MRF leads the world with the highest number of racing tyre plants (three) followed by JK. 

In terms of Capex spending as a percent of sales, MRF and BKT rank at 2^nd and 3^rd place amongst top 30 tyre majors in the world. What’s more, CEAT, JK and Apollo are all in the top 20.

When it comes to R&D spend as a percent of sales, all five Indian tyre companies are in top 20 in the world, underscoring the unmistakable accent on innovation and R&D. CEAT leads the chart amongst Indian tyre majors with 1.5 percent of sales apportioned for R&D spend.  

The R&D investments are enabling Indian companies to produce high-performance tyres that cater to diverse requirements, from passenger vehicles to specialised uses in agriculture and industry. Another area where R&D effort is directed is the focus on sustainable materials and eco-friendly practices that align well with a global shift towards greener, more responsible manufacturing.

As is evident, Indian tyre manufacturers are not sitting on their laurels. Looking to the future, they are exploring digital technologies, such as IoT and data analytics, to improve efficiency and product performance. This tech-forward approach will be essential for meeting the evolving needs of the automotive industry, especially as electric vehicles (EVs) and autonomous vehicles (AVs) become more prominent.

Here it is important to underline the Indian government’s supportive policies that have been instrumental in the growth of the tyre industry. Initiatives encouraging local manufacturing and favourable trade policies have supported the growth of the Indian tyre industry.

The achievements of the Indian tyre industry are a testament to the resilience and adaptability to rise to the occasion. As the industry evolves, a bright future is promised in the years to come. 

The author is the Director General of the New Delhi-based tyre industry association, Automotive Tyre Manufacturers’ Association (ATMA). The views expressed here are personal.

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JK Tyre & Industries is aiming for double-digit revenue growth in FY2026, outpacing its forecast for single-digit expansion across the broader tyre industry. Managing Director Anshuman Singhania outlined the company’s ambitions during a post-earnings media call, underscoring confidence in demand recovery and strategic market positioning.

Q1 Performance Overview

For the first quarter of FY2026, JK Tyre reported revenue of INR 38.91 billion, with EBITDA at INR 4.24 billion, translating to a margin of 10 percent. Net profit stood at ₹1.55 billion — up 51 percent compared with the previous quarter, but down 21 percent YoY.

Singhania attributed the annual decline to muted original equipment (OE) demand, particularly in truck and bus radial (TBR) volumes, alongside higher raw material costs compared to the same period last year. He also highlighted an adverse impact from the company’s Tornel business in Mexico, which faced uncertainty due to tariffs on exports from Mexico to the United States, dampening volumes.

Resilience in Domestic and Export Markets

Dr Raghupati Singhania, Chairman and Managing Director, JK Tyre & Industries, said, “The growth momentum in domestic markets remained robust in Q1, with JK Tyre clocking a sales growth of 11 percent YoY, as contributed by a steady demand for our products in both replacement as well as OE segments, underscoring JK Tyre’s continued focus on core growth drivers and strengthening market presence.”

“Despite a challenging and uncertain macro-economic environment, exports of passenger car tyres witnessed a strong traction both on QoQ and YoY basis, signifying pull for our products and enhanced brand perception in the global markets,” said Dr Singhania.

Operational efficiencies and strategic pricing supported performance, even as natural rubber prices remained elevated. Subsidiaries Cavendish (India) and Tornel (Mexico) continued to contribute significantly to the group’s consolidated financials.

Operational efficiencies and strategic pricing supported performance, even as natural rubber prices remained elevated. Subsidiaries Cavendish (India) and Tornel (Mexico) continued to contribute significantly to the group’s consolidated financials.

Regarding trade tensions between India and the US, Anshuman Singhania noted that exports from India to the US account for only around 3 percent of JK Tyre’s revenue and could be redirected to markets such as Mexico, Latin America, Brazil and the UAE if required. With zero tariffs in Mexico, JK Tyre can utilise its production base there to meet demand for both passenger and truck radials. The EU and UK, where JK Tyre holds a strong position in the TBR segment, also remain tariff-free.

Capacity expansion

The company’s INR 14 billion capital expenditure plan is progressing on schedule, covering passenger car radial (PCR), TBR and all-steel truck radial projects. For the year, investment is expected to total INR 9-10 billion, aimed at boosting production capacity by 30-40 percent.

A key driver for future profitability is the shift towards premium products. The share of 16-inch and above passenger car tyres in JK Tyre’s portfolio has grown from 18 percent in FY2020 to 25 percent in FY2025, with a target of 40-45 percent over the next two to three years. This change is being fuelled by rising SUV sales, larger rim sizes in entry-level cars and strong export demand.

The company has also developed a complete range of tyres for electric vehicles, spanning commercial truck radials, bus tyres, passenger radials and two/three-wheeler tyres  Major OEMs such as Ashok Leyland’s Switch Mobility and Tata Motors are sourcing these products, including for last-mile connectivity vehicles and newly launched EV buses.

Market Outlook

The replacement market has been a bright spot, with passenger radial volumes up 32 percent year-on-year and truck radial volumes growing in the high single digits. JK Tyre expects demand to strengthen in the second half of FY2026, supported by infrastructure development, a favourable monsoon, potential interest rate cuts, and improved consumer liquidity.

Anshuman Singhania stressed that the worst of raw material price pressures appear to be over, paving the way for margin improvement as the product mix shifts and capacity utilisation rises. With the small car segment’s gradual decline offset by growth in premium categories, JK Tyre remains confident in sustaining momentum.

“Overall, India is poised for growth,” Singhania concluded. “We see positives across the board — from infrastructure push to evolving consumer preferences — and we are well-positioned to capitalise on these trends.”

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Yokohama Rubber has begun supplying its ADVAN V61 tyres as original equipment for BYD’s new SEALION 6 DM-i SUV, marking the Japanese manufacturer’s first OE partnership with the Chinese carmaker.

The SEALION 6 DM-i, a plug-in hybrid SUV launched by BYD Company Ltd. this July, is being factory-fitted with 235/50R19 103V size ADVAN V61 tyres. The announcement comes as Yokohama seeks to grow its footprint in China’s fast-evolving electric and hybrid vehicle market.

The ADVAN V61 is part of Yokohama’s global flagship ADVAN range and is positioned as a premium SUV tyre. The company said the tyre “offers ADVAN’s hallmark premium-grade driving performance, along with a high-level balance of fuel and energy efficiency, handling stability, and quietness, achieving both comfortable city driving and long-distance touring for heavyweight SUVs.”

The SEALION 6 DM-i combines a 1.5-litre naturally aspirated petrol engine producing up to 74kW with an electric motor generating 160kW. Buyers can choose between 18.3 kWh and 26.6 kWh blade battery options, offering electric driving ranges of 93km and 130km, respectively. All models come equipped with advanced driver assistance systems as standard, and the exterior design draws inspiration from the concept of “ocean aesthetics.”

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Sumitomo Rubber Industries Ltd said its subsidiary Dunlop Tyre Japan Ltd has completed a Japan Fair Trade Commission investigation into automotive all-season tyre sales after the regulator approved a commitment plan submitted by the unit.

The probe, which examined the subsidiary’s sales practices, concluded without the commission identifying any violation of Japan’s Antimonopoly Act, Sumitomo Rubber said in a statement.

Under Japan’s commitment procedures, companies can submit plans to address potential competition concerns without admitting wrongdoing, allowing them to resolve investigations while avoiding formal sanctions.

"We deeply apologise for the great trouble and anxiety that we have caused to all concerned, including our clients and business partners,” the tyre maker said.

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Belgian steel wire maker Bekaert reported resilient first-half 2025 earnings as strong cash generation and cost control offset softer sales, but warned that tariffs and currency pressures are weighing on demand.

The company posted consolidated sales of €1.9 billion, down 5.2 percent year-on-year, with volumes declining 2.6 percent and price/mix effects stripping out a further 2.2 percent. Underlying EBIT slipped 16.2 percent to €171 million, delivering a margin of 8.8 percent compared with 9.9 percent a year earlier.

Free cash flow surged to €123 million from €43 million in the prior-year period, driven by a €135 million reduction in working capital and €21 million in cost savings as the company continued to streamline operations and rein in capex. Net debt fell to €327 million from €399 million despite a continuing €200 million share buyback programme, €74 million of which has been completed.

“We have continued to focus on what we can control best – cash flow and costs - and have significantly reduced overheads and working capital in H1 2025,” chief executive Yves Kerstens said. “Equally, I am very pleased with the hard work of our teams fighting for volumes in the current challenging markets.”

He added: “We are also taking further steps to make our business units more autonomous and agile. Therefore, I am very confident that we will come out of the current business environment stronger and more cost competitive than ever before.”

Bekaert said volumes were particularly strong in its Steel Wire Solutions and Rubber Reinforcement divisions in the United States and China, while European and Latin American demand lagged. Its Brazilian joint ventures delivered €24 million in net profit share, up from €20 million a year ago.

However, the group cautioned that growing trade tensions – including a rise in US steel tariffs from 25 percent to 50 percent – and the weakening of the US dollar and Chinese yuan against the euro were eroding pricing power and softening orders.

“Following a period of resilience in Q2, the tariff uncertainty and weakening economic outlook has started to have an impact on demand,” Bekaert said.

The company now expects slightly lower full-year 2025 sales on a like-for-like basis, with an underlying EBIT margin of between 8.0 percent and 8.5 percent, down from 8.8 percent in the first half.

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