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.

Russia's tyre recycling industry has grown significantly in recent years due to increasing environmental concerns and government regulations aimed at reducing landfill waste. The country generates millions of tonnes of used tyres annually, with many initiatives focusing on recycling them into rubber granules, fuel and construction materials. Key players in the industry include local companies and a few foreign investments with major recycling plants concentrated around Moscow and other industrial regions.

However, the Russian Far Eastern region, referred to the vast, easternmost part of the country that borders the Pacific Ocean, still struggles to deal with the disposing of end-of-life (EOL) tyres.

According to Ecostar Factory Co-founder Sergei Lazarev, “Vladivostok, the largest city in Russia's Far East, ranks fifth in the country for vehicles per capita, making it the region's leader in vehicle density. This results in a growing volume of waste tyres annually, posing a significant environmental challenge. Due to the vast distances, transporting used tyres to recycling facilities in central Russia is prohibitively expensive, inflating both the recycling costs and the prices of products made from recycled materials. The lack of local recycling infrastructure exacerbates the problem, underscoring the need for regional solutions to manage tyre waste more efficiently and sustainably.”

“With 15 years of experience in tyre recycling, our company is well-positioned to meet the growing demand for tyre recycling in the Russian Far East. The new facility will allow us to recycle over 10,000 tonnes of ELT annually and meet market needs accurately. We also plan to double this capacity within the next five years, which is especially crucial in regions like the Russian Far East, where transportation costs are high and local recycling infrastructure is lacking. This expansion will help address regional tyre waste challenges more effectively,” he added.

A total of USD 500,000 was invested in the new tyre recycling unit, financed through a mix of 30 percent capital and 70 percent bank loans. The seven percent interest rate, subsidised by the Primorye Government Guarantee Fund and the Federal Government Fund for SMEs, highlights the strategic backing you’ve received. Specialising in recycling ELT tyres into rubber crumb, this setup not only aligns with growing sustainability efforts but also demonstrates the effectiveness of public-private cooperation in fostering business expansion and environmental impact in Russia’s Far East.

The Far East and Arctic Development Corporation (FEDC) played a crucial role in the tyre recycling project’s success by providing a 17.3-acre land lot and essential infrastructure. This included telecommunications, access roads, power supply, water supply, water disposal and natural gas supply. Additionally, FEDC offered tax benefits, making it a key partner in the project’s development, facilitating smoother operations and reducing overhead costs. This comprehensive support has been instrumental in advancing the project in the Russian Far East.

Promoting recycling

The company's operations, which focus on recycling ELT tyres without thermal methods like pyrolysis due to environmental concerns, were nearly derailed when the ruble-dollar exchange rate doubled in 2022, making equipment and construction prohibitively expensive.

Despite purchasing Chinese machinery, adjustments were needed due to differences in tyre composition, particularly the amount of cord fibre. The company plans to recycle 20 years’ worth of accumulated tyre waste and supply crumb rubber to playgrounds, stadiums and road projects, boasting the only facility in the region certified to meet government sanitary standards.

With no direct competitors in the Primorye region, the company remains committed to expanding operations despite these challenges.

Answering how the new plant supports broader recycling goals, Lazarev said, “The new plant supports the broader goals of the company by serving as a central hub for tyre recycling in the Russian Far East. We operate facilities in five regions including Magadan, Kamchatka, Sakhalin, Khabarovsk and Primorye and plan to upgrade them within the next three years to produce rubber chips, which will be transported to the main facility in Primorye for further processing. Additionally, we aim to invest in research and development to develop additives for bitumen, enhancing its use in road construction projects. This strategy is key to expanding recycling capabilities beyond 10,000 tonnes annually and promoting sustainable infrastructure development.”

The company will source tyre waste primarily from transportation and tyre service companies. To ensure quality, it has implemented a comprehensive management system designed to produce clean, precisely sized crumb rubber. The triple cleaning process removes metal and cord fibre, while its proprietary qualification system ensures four specific size fractions of crumb rubber are achieved.

Alluding to European Union (EU) directive on crumb rubber infill ban, he noted, “Regarding the EU ban on rubber crumb in artificial turf, Russia has no such restrictions. In fact, a recent Russian government act (08/28/2024) mandates the use of rubber crumb in sports infrastructure and road construction. We have also obtained a special health certificate allowing the use of its crumb rubber in outdoor playground construction.”

Addressing challenges

Russia imports tyres primarily from China, which is the largest supplier, offering a wide range of products including passenger, truck and industrial tyres. South Korea follows, known for its high-quality passenger and performance tyres, while Japan contributes advanced technology and speciality tyres. Belarus, as a neighbouring country, exports various tyre products, particularly for commercial vehicles. Turkey has also been increasing its market presence with competitive prices and quality. Additionally, some European Union countries export tyres to Russia, although trade dynamics are influenced by tariffs and geopolitical factors.

Such a wide array of tyres poses challenge for recyclers. Commenting on the same, the executive said, “The plant was initially scheduled to open in August 2023. The company faced significant challenges due to currency fluctuations, infrastructure delays and regulatory hurdles. Despite purchasing Chinese machinery, adjustments were needed due to differences in tyre composition between China and Japan, particularly the amount of cord fibre. The lack of suitable land with the necessary infrastructure and meeting strict ecological standards are further obstacles.”

“We are currently facing a staff shortage across all skill levels, from low-skilled to highly qualified personnel. To address this, we plan to recruit workers from other regions of Russia and internationally. Recently, we hired five individuals from India on one-year contracts, providing them with comprehensive benefits that include accommodation, food, transportation and work uniforms. We aim to attract even more skilled workers this year to strengthen our team,” he added.

Ecostar's plant aligns seamlessly with Russia's broader waste management and environmental objectives, particularly in the Far East. It supports the government's strategy for a circular economy, which is reinforced by new legislation regulating the use of recycled materials in the production of goods and services. Additionally, the government has introduced the concept of ‘green purchases’, mandating that government agencies and state-owned companies procure a minimum quantity of products made from recycled materials. This initiative emphasises the importance of integrating recycled materials into the economy, enhancing sustainability efforts across the region.

India’s tyre retreading market is estimated to be an INR 60 billion industry with retreading mostly happening on commercial vehicle tyres. The organised sector is slated to grow between 7-9 percent (CAGR) over the next three years. The retreading industry in India dates back decades, primarily focusing on commercial vehicle tyres. Over the decades, it has evolved with advancements in technology and regulatory frameworks. Government initiatives promoting sustainability and waste tyre management have further spurred growth, establishing retreading as a key component of the tyre market.

A recent media report stated that the organised tyre retreading market in India observed muted growth in the last five years. Speaking to Tyre Trends¸ ICRA Assistant Vice President and Sector Head – Corporate Ratings Nithya Debbadi said, “The domestic tyre retreading market is estimated at over INR 60 billion. Tyre retreading is largely done in commercial vehicles, which account for 80 percent of the market. Trucks account for 60-65 percent, while buses account for the rest of 15-20 percent. Off-highway tyres (OHT) including tractors account for 12-15 percent, while passenger vehicles account for a negligible share.”

More than 70 percent of the truck tyres are retreaded at least once. While retreading is prominent even in the LCV segment, proportion of tyres retreaded is lower than in M&HCV. Increasing radialisation, improving road infrastructure and retreading technology and focus on sustainability is expected to increase the share of retreading in the truck and bus radial (TBR) segment, going forward. New tyre designs for electric vehicles also presents opportunities for the retreading industry.

Demand growth

Alluding to how the Indian government’s focus on waste tyre disposal and increasing radialisation in commercial vehicles has benefitted the TBR retreading market in India, she noted, “Indian government introduced Extended Producer Responsibility (EPR) guidelines for waste tyres management, which came into effect in July 2022. The guidelines lay down rules relating to utilisation and management of waste tyres by producers (manufacturers and importers), recyclers and retreaders. Producers or importers need to fulfil EPR obligations by purchasing EPR certificate from registered recyclers. However, EPR obligation of tyre which has been retreaded shall be deferred by one year.” 

 “While the guidelines came into effect in FY2023, targets have been increasing progressively with the obligation increasing to 100 percent of tyre production in FY2025. Increasing focus on waste tyre management incentivises producers to focus on sustainability, which supports growth of retreading market. Compliance is achieved by purchasing EPR certificates from authorised recyclers or retreaders, thus developing tyre recycling infrastructure,” she added.

In trucks and bus segment, share of radialisation is estimated to have increased from 48 percent in FY2019 to over 55 percent in FY2024. Radial tyres have stronger structure, which supports multiple rounds of retreading. Moreover, radial tyres are more suited for roads in better conditions, leading to higher range for a given duration. This leads to frequent need for retreading.

She also noted that owing to Covid-19 and its post-effects, the retreading industry saw a flattish growth (estimated CAGR of 1-3 percent) in the three years ending FY2023. However, with the government’s thrust towards disposal of waste tyres, anti-overloading measures and increasing radialisation in commercial vehicle tyre segment, the retreading market has been a key beneficiary witnessing better demand traction in FY2024.

ICRA expects the organised tyre retreaders to grow by 7-9 percent (CAGR) over the next three years. Key factors supporting the growth include focus on sustainable tyres, improving tyre and retreading technology, better road infrastructure, rising radialisation in CV segment etc.

Alluding to what impact is the growing demand for sustainability and cost efficiency having on the quality standards and innovation within the retreading industry, she noted, “Retreading results in significant cost saving as the cost of retreading is around 20-50 percent the cost of a new tyre because of reuse of casing. Treads account for close to one-third of a tyre’s total cost. Performance of a retreaded tyre also depends on the health of the original casing.”

She added, “Developments in tyre technology has resulted in stronger casings and overall tyre structure that supports multiple rounds of retreading. Enhanced re-manufacturing techniques and higher quality rubber compounds are improving the quality of retreaded tyres and supporting demand. With quality casing and superior retreading technology, a tyre can be retreaded two to three times before being replaced while maintaining 80 percent quality of the new one.

Impending challenges

The tyre retreading market in India is at a pivotal juncture driven by a confluence of regulatory support, technological advancements and a growing awareness of sustainability. While challenges remain in the form of market fragmentation, the potential for growth is significant.

Despite these positive trends, the TBR retreading market faces significant challenges. The Indian market remains highly fragmented with over 50 percent of players operating in the unorganised sector.

As the industry adapts to changing dynamics, the focus on quality and sustainability will play a crucial role in shaping its future trajectory. The next decade may see retreading not just as a viable alternative to new tyres but as an essential component of a more sustainable automotive ecosystem in India.

Yokohama TWS appointed Lawrence Harmon as regional president for North and Central America, tapping a tyre industry veteran to drive its expansion in the region.

Harmon, who assumes the role on 1st January, will report to TWS President Elio Bartoli, the company said in a statement Thursday. He joins from Yokohama ATG, where he served as president of the global OE business.

The appointment brings an executive with three decades of tyre industry experience to oversee Yokohama TWS’s regional strategy and commercial operations. Harmon previously served as executive vice president of marketing and sales at The Carlstar Group and held senior executive positions at Michelin, where he managed various sales channels.

“We are thrilled to welcome Lawrence to lead our North and Central America operations,” said Elio Bartoli, President of Yokohama TWS. “His deep industry knowledge and leadership experience will be key to strengthening our market presence and advancing our business strategy.”

“Our priority in North and Central America will be on enhancing collaboration with the replacement sales network,” Harmon added. “With our ‘local for local’ approach, we focus on providing tyres and services that empower our customers and address their unique operational needs. With a strong presence in the OE market in North America, we look forward to working with our dealer network to achieve similar levels of share in the aftermarket. Leveraging the full potential of our multi-brand portfolio, we are committed to providing tyre solutions across Agriculture, Construction, Material Handling, and Two-Wheeler markets, helping our customers drive productivity and efficiency in every operation.”

Goodyear Tire & Rubber appointed Don Metzelaar as senior vice president of global manufacturing and supply chain, tapping an industry veteran to oversee its worldwide production network amid efforts to streamline operations.

The Akron, Ohio-based company said in a statement Thursday that Metzelaar, who starts on 13 January, will report directly to Chief Executive Officer Mark Stewart.

He joins from Johnson Controls International, where he served as chief manufacturing officer and global vice president.

“Manufacturing is at the core of our business, and the transformation of our manufacturing operations is central to our go-forward strategy,” said Stewart.

“With Don’s proven record of developing, enhancing and leading global footprints, I’m confident his leadership will accelerate our manufacturing transformation and

leverage our scale for operational efficiency and customer impact. I’m happy to welcome him to Team Goodyear.”

The appointment brings an executive with three decades of manufacturing experience to Goodyear’s leadership team. At Johnson Controls, Metzelaar led initiatives to transform factory processes and integrate systems across operations. His previous roles included senior positions at Whirlpool Corp., Honeywell International Inc., and Motorola Inc.

Metzelaar will oversee Goodyear’s global manufacturing footprint, supply chain operations, environmental health and safety, and quality control in his new role. He will also manage the tyre maker’s product planning and lifecycle systems.