What are the immediate impacts of COVID-19 on the Indian tyre industry?

Currently, the tyre industry is battling one of the worst crises. The demand for tyres has fallen drastically given consecutive lockdowns and restrictions on mobility. The auto industry is also in the grip of a slowdown. Moreover, the cash flow situation in the tyre industry is under severe stress because of the prolonged shutdown. The industry is poised to lose sales of around Rs 10000 crore for nearly 40-day lockdown and the time taken to resume normal operations. There is massive blockage of funds by way of inventories of raw materials and in the form of finished goods in the supply chain process.

The industry has resumed operations in a limited way. However, it may take another six months for the entire operations to stabilise since the industry is passing through huge cash flow problem following supply chains getting stuck.

What kind of support does the industry expect from the government in this tough time?

Support to the tyre industry both in the forms of fiscal stimulus and a policy push to address challenges being faced by the industry is vital to set the wheels of economy in motion.

To overcome this unprecedented situation, ATMA has submitted that tyre industry concerns are addressed on top priority. Partial reduction of customs duties has been sought for raw materials of the tyre industry as some of these critical raw materials are either not domestically manufactured or there exists a demand-supply gap locally. Also, a majority of raw-materials of the tyre industry attracts anti-dumping duties notwithstanding the domestic demand-supply deficit, thereby impinging adding to the cost for the domestic tyre industry. ATMA also seeks long outstanding correction of inverted duty structure as the customs duty on the critical raw material of tyres, viz. natural rubber is significantly higher, which is 25%, than the basic customs duty on the finished product, i.e. tyres, which is between 10% and 15%. In contrast, the effective or actual rate of duty is even lower, at times as low as ‘nil’ to 5%, under various trade agreements. These are some of the support measures we have asked for to ride through the current crisis.

Being the largest stakeholder, what kind of support tyre companies can give small players in the supply chain?

We believe we are in it together. The tyre industry has generously contributed in monetary and other terms in the country’s fight to contain the pandemic. The interest of the entire value chain is important to us. The tyre sector is a raw material intensive industry, and for it to be competitive, the entire supply chain must be competitive.

Much before the pandemic came to disrupt operations; we have been holding ATMA Partners Summit, a ‘by invitation only’ event wherein the raw material partners across the board are invited to exchange notes on overcoming concerns and making the most of emerging opportunities. In its width of participation, ATMA Partners’ Summit is perhaps unparalleled.

Talking about MRF, we have committed a sum of Rs 25 crore to PM Cares Fund to support various government measures in those States where MRF’s factories are located. Just before the lockdown got implemented, MRF purchased large quantities of natural rubber, even beyond our requirement, to avoid a fall in its price which would have hurt the planters. When the lockdown was announced, around 100 trucks were outside of our warehouses to deliver rubber when all our warehouses were full. So, the tyre industry is a responsible corporate citizen conscious of its role in the value chain.

Cost-cutting is inevitable that will also lead to curbing in investments in technologies. Do you think such circumstances will put us (Indian tyre companies) behind in the competition for the new mobility / CASE?

The pandemic is not India specific. It has caused an existential crisis for the entire world. Cost-cutting measures will be the norm worldwide. India is poised to bounce back faster, given the policies of the government with a sharp focus on Self-reliant India and the trust surplus that India has gained during the crisis.

The investment in R&D is there to stay. However, plant expansions could be delayed considerably due to uncertainty of demand coupled with limited liquidity.

Industries in China are ramping up production. Do you think that going forward Chinese tyre companies will able to increase the market share in India?

Yes, dumping of tyres from China is a looming threat. Though an Anti-Dumping Duty (ADD) and a Countervailing Duty (CVD) is in place on Truck and Bus Radial (TBR) tyre imports into India from China. Total tyre imports from China have increased at an alarming rate of 20% YoY during Apr-Jan, FY20. What is of bigger concern is that in recent years, tyre imports into India have increased significantly from Thailand, mainly since Anti Dumping Duty and CVD was imposed on Radial CV tyre imports from China. Likewise, tyre production originating from Vietnam, Indonesia and other ASEAN countries pose a significant threat to the tyre industry in India as a majority of such output and imports can be directly or indirectly traced to be of Chinese ownership or collaborations. Steep and significant increase in radial CV tyres from Thailand confirms this development. ATMA has sought immediate imposition of interim Anti-Dumping Duty (ADD) on such indiscriminate and dumped imports and awaits an early action by DGTR, Ministry of Commerce.

Do you think that we need to revive the outlook for the long-term and what will it be?

Nothing has caused the kind of uncertainty as Covid-19 has led to. Yes, the outlook needs to be revised, but by how much that depends a lot on the growth projected for the overall economy and the auto sector.

As of now, we believe it will take another six months for operations to normalise at tyre plants if there is no sudden spike in Covid-19 cases and lockdowns are not prolonged or implemented again. However, tyre plants have started operating in all earnestness, supply chain issues notwithstanding.

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Hankook Tyre UK has expanded its Truck and Bus team with two key appointments. Jason Bloor has been appointed as National Account Manager, while Peter Hatton has been appointed as Regional Sales Manager for the combined Midlands and Northwest region.

Bloor, who will be overseeing national fleets activities, brings with him 34 years of experience in the tyre industry, while Hatton, who joined Hankook Tyre UK in May, has over three decades of expertise in the tyre and transport industry.

Chang-Yool Han, Managing Director, Hankook Tyre UK, said, “Following the opening of Hankook House, our new UK headquarters, we are pursuing ambitious growth plans for the UK market. We are delighted to welcome Jason Bloor and Peter Hatton to the team. Their extensive industry experience will undoubtedly make an immediate impact on the company’s continued success."

Bloor said, “I joined the tyre industry straight out of school in 1991 starting as a fitter where I discovered a passion for fleet management. Over the last 20 years, I have managed mileage contracts and key accounts, taking on responsibility in both sales and operations. I am excited to bring my decades of experience to Hankook and help drive brand awareness and strengthen customer relationships.”

Hatton said, “Having spent 30+ years working in the tyre and transport industry, I am privileged to be part of the Hankook UK team. The company offers an excellent range of tyre products across its premium Hankook brand and associate brand Laufenn. I look forward to applying my skills and experience in supporting both current and new customers while working alongside a brilliant team.”

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CAMSO Construction has appointed Steffen Sahl as Director of Sales for Europe. Sahl brings with him 25 years of experience in the European OTR mobility sector.

The company statement read: “With over 25 years of experience in the European OTR mobility sector, and a successful entrepreneurial journey in distribution, Steffen combines deep market insight with a customer-first mindset.”

“This is a tremendous opportunity, and I am filled with gratitude for everyone who has been part of my professional path so far. A huge thank you to my previous colleagues, mentors and teams – I carry your lessons and support with me. I am deeply honoured by the trust of the CEAT leadership, and am immensely looking forward to building on Camso's strong foundation, driving growth across European markets and collaborating with the talented team in the CEAT speciality family,” said Sahl on his appointment.

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JK Tyre & Industries Ltd, one of India's largest tyre manufacturers, has announced its partnership as co-presenting sponsor of the Men's Asia Cup 2025, as the cricket tournament begins its three-week run across venues in the United Arab Emirates.

The sponsorship deal with Sony Sports Network covers the Twenty20 International tournament running from September 9 to 28 across Dubai and Abu Dhabi, marking JK Tyre's expansion from its traditional motorsport sponsorship into cricket broadcasting.

The partnership positions JK Tyre to reach cricket audiences across India and Asia during prime-time broadcasts of the 19-match tournament, which features eight national teams competing for the continental title.

"At JK Tyre, we have always believed in the power of sport to unite, inspire, and drive passion. Having nurtured motorsport for over three decades, we are excited to bring the same spirit to cricket, a game that binds millions of fans across Asia," said Srinivasu Allaphan, Director-Sales & Marketing at JK Tyre & Industries Ltd.

"Our association with the Men's Asia Cup 2025 is a strategic step in strengthening our brand visibility across India and Asia and reinforcing our positioning as 'Desh Ka Tyre,' a brand that reflects the aspirations and passions of today's India."

JK Tyre, which has built its sporting credentials through decades of involvement in motorsport, is leveraging cricket's popularity to strengthen its market position across Asia's emerging economies.

The Asia Cup represents one of cricket's premier regional tournaments, with the current edition featuring teams including India, Pakistan, Sri Lanka, Bangladesh and Afghanistan amongst others. The tournament serves as preparation for next year's T20 World Cup.

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InnoVent Technology LLC has appointed Jose Rodriguez as its new Chief Technology Officer. He brings three decades of extensive experience in industrial digital systems, automation and simulation platforms to the role.

Rodriguez was most recently the Global Technical Authority at Wood Group, a multi-billion-dollar engineering firm, and previously served as CTO of Ingenious Inc., prior to its acquisition by Wood. In his new position, he will direct a global team focused on advancing the company's InnoSIM digital twin platform.

His leadership will be central to integrating commercial AI and automation systems, significantly boosting predictive modelling capabilities and deploying digital twin projects on an international scale. The appointment underscores InnoVent's strategic commitment to leading the industry through cutting-edge technological innovation and advanced digital solutions.

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