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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Kolkata-based Himadri Speciality Chemical has announced that its flagship plant in Mahistikry, Haripal, Hooghly, has received ISCC PLUS (International Sustainability and Carbon Certification).

The company has been recognised for its ecological and social responsibility, along with compliance with stringent criteria on greenhouse gas emission reduction, ecosystem protection, social accountability and complete traceability of raw materials.

Anurag Choudhary, CMD & CEO, Himadri Speciality Chemical, said, “Achieving ISCC PLUS certification marks a defining step in Himadri’s sustainability journey. It validates our determination to integrate renewable, low- carbon, and circular solutions into every layer of our operations. As global industries shift towards sustainable value chains, Himadri is leading this transformation—delivering innovative and responsible solutions that create long-term value for society, the environment, and our stakeholders worldwide.”

With this recognition, the company joins a number of global players who are driving systemic change towards responsible sourcing and production.

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George Varughese, founder of General Rubbers and the man behind the iconic Midas brand of tyre retreading materials, passed away on 28^th August, 2025.

Varughese established General Rubbers in 1969, building Midas into India’s most recognised name in retreading materials. Under his leadership, the company has grown into a global player, supplying more than 24,000 tonnes of tread rubber, precured tread rubber and other products annually. Today, Midas serves customers across South America, Africa, Europe and Australia.

Known for his vision and emphasis on innovation, Varughese placed research and development at the heart of Midas’s success. His commitment to improving compound formulations with the latest technology ensured the brand’s reputation for durability and reliability.

With operations centred in Kottayam, Kerala, Midas continues to expand its dealer network, reflecting Varughese’s lifelong mission of accessibility and customer service.

Varughese leaves behind a lasting legacy in India’s tyre industry, remembered as a pioneer who transformed the retreading sector into a global business.

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Vaculug has named Nick Hermitage as Operations Manager – OTR South, following a significant expansion in its OTR Division.

The company's new OTR Centre of Excellence in the South East will serve as Hermitage's headquarters. He is in charge of making sure the depot runs smoothly, which includes daily administration, logistics, foam filling and tyre pressing. Hermitage brings with him a depth of experience, knowledge and skill – accumulated over 22 years in the tyre industry.

Alan Robin, National Account Manager – OTR, Vaculug Technologies Ltd, said, "This is an incredibly exciting time at Vaculug, and we are fortunate to welcome Nick to the OTR team. His extensive experience and deep knowledge of both OTR and solid tyre operations will be instrumental as we build on our significant investments in the division. I am confident Nick will make a strong contribution to our growth and I wish him every success in his new role."

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Hankook Tire Europe GmbH has appointed Richard Bezzant as the new Marketing Director Truck and Bus with effect from 1 August 2025.

The British-born marketing and sales expert started his career with Michelin in UK in 2003. He brings with him more than two decades of experience in the tyre business for buses and trucks. Following a five-year period in leadership roles in France, he most recently served as Marketing Director for UK and Ireland, where he was responsible for developing and managing the complete marketing strategy across all business divisions.

Bezzant said, “My goal is to support growth opportunities for Hankook in the European truck and bus sector and expand them further. I am confident that we will be able to build on what has been achieved so far and continue to expand the business with innovative products and services. I am glad to be working with a great team to pursue our goals.”

Jang Hyuk Moon, Vice President – Marketing Department, Hankook Tire Europe, said, “With Richard Bezzant, we have appointed an industry-leading expert for our truck and bus marketing activities. With his decades of experience, we will consistently expand our business in the commercial vehicle sector and strengthen our market position in Europe in the long term.”

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