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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Balkrishna Industries (BKT) has appointed Saroj Kumar Khuntia as chief financial officer with effect from June 18, following the retirement of Madhusudan Bajaj, who stepped down after attaining the age of superannuation.

The board approved Khuntia's appointment at its meeting on June 17, based on the recommendations of the nomination and remuneration committee and the audit committee.

Bajaj ceased to serve as chief financial officer and key managerial personnel at the close of business on June 17 in accordance with the company's retirement policy.

The company said his departure was not a resignation. Following his retirement, Bajaj will continue to assist the company as special adviser to the chairman and managing director.

The board recorded its appreciation for Bajaj's contribution and leadership during his tenure.

Khuntia assumes the role of chief financial officer and key managerial personnel from June 18. He will also serve as compliance officer.

A fellow chartered accountant, Khuntia has more than 24 years of experience in corporate finance, strategy, capital markets, treasury, taxation, governance and finance transformation.

He has previously worked with CG Power, the Mahindra & Mahindra Group, IBM and Hindustan Lever.

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As cost pressures tighten across the global tyre industry, manufacturers are increasingly turning inward to extract efficiencies from processes they can control. While raw material volatility remains unavoidable, machinery performance has emerged as a decisive lever in balancing cost and quality. Companies like Comerio Ercole position themselves as critical enablers in this shift, promising precision, consistency and waste reduction. However, the extent to which advanced machinery alone can offset broader market uncertainties warrants closer scrutiny.

It is no news that the global tyre industry is looking at every angle of its procurement to supply ecosystem for being more conservative from a price point. Nonetheless, it is a prudent reality of today’s volatile global market that certain aspects within tyre manufacturing process, such as raw material prices, cannot be controlled or influenced.

Hence, manufacturers look more inwards, and that call is being addressed by the other players of the value chain such as machine manufacturers. Italian tyre machinery maker Comerio Ercole makes machines that minimise variability in production, reducing scrap and optimising material usage.

Speaking to Tyre Trends exclusively, Managing Director Riccardo Comerio said, “Our machines derive their credibility in the market because of their high precision and long-term reliability. Our machines minimise variability in production, reducing scrap and optimising material usage. Their durability also ensures lower maintenance costs and long-term investment value.”

Comerio Ercole was founded in 1885 and headquartered in Busto Arsizio, specialising in high-end machinery for the rubber, plastics and nonwovens industries with a particularly strong global reputation in calendering technology, which is one of the most critical processes in tyre manufacturing.

It operates upstream as a key technology partner, supplying advanced calender lines, mixing systems, coating and lamination equipment and turnkey plant solutions to leading tyre manufacturers worldwide, thereby acting as an enabler of tyre production.

The company combines mechanical engineering with process expertise, digital Industry 4.0 capabilities and research and development-driven innovation, including patented systems and award-winning solutions like the ZEUS calender line, while also expanding into sustainability through recycling technologies such as devulcanisation systems.

Its last notable move being a 2022 strategic stake in Sasmac International (Saspol Technology) to expand capabilities in presses and retreading systems, recent efforts have focused on digital platforms like Hercules40, continuous product innovation and global market engagement.

“The company continuously improves mechanical precision and process stability, ensuring excellent uniformity. The combination of high-quality machine construction, advanced control systems and super precise roll geometry allows for very tight tolerances and consistent output over time,” added Comerio.  

NEW REQUIREMENTS

According to Comerio, the main challenges that tyre makers face today include managing complexity, ensuring precision and consistency, reducing waste and maintaining efficiency. This makes high-performance, precise and durable machinery more important than ever.

He noted that the future of tyre making technology will focus on precision, durability and efficiency, combined with automation and sustainability. “Companies like Comerio Ercole, together with complementary partners such as Saspol, are well positioned to support the evolution of the tyre industry with very reliable, high-quality solutions,” he noted.

He added that as a global leader in calenders, open mills and internal mixers for the tyre and rubber industry, their machines are designed for high performance, extreme precision and long operational life.

To meet evolving compound requirements, Comerio Ercole focuses on robust engineering, precise control of process parameters and the ability to handle increasingly complex and high-performance rubber formulations, especially for major tyre manufacturers in markets like India.

The calenders and mills are built to process high-performance and speciality compounds with stability and accuracy. Their robust design and precision allow customers to consistently achieve the required performance standards.

Moreover, automation enhances the inherent strengths of the machines such as precision and reliability by ensuring consistent operation, reducing human error and improving overall production efficiency.

Commenting on the evolving systems to process recycled and sustainable rubber materials, Comerio said, “Processing recycled materials requires even greater control and stability. Our machines are well suited to handle these challenges while maintaining product quality. We also offer compact plants for rubber devulcanisation and for the re-work of non-vulcanised rubber scraps.”

The demand from the retreading industry is also shaping the company’s market strategy. “The growing importance of retreading highlights the need for durable and reliable equipment. Through companies like Saspol, which offers long-lasting and high-quality compression presses, it is possible to address this segment effectively and complement Comerio Ercole’s core technologies,” noted the executive.

“Saspol specialises in high-quality rubber compression presses, known for their durability and reliability over time. It provides solutions for solid tyres, tyre retreading and conveyor belt presses. There is no competition between the two companies as Saspol complements Comerio Ercole’s offering, allowing us to cover additional applications in the rubber industry and serve a wider range of customers also in India,” he added.

Ultimately, while high-precision machinery offers tangible gains in efficiency and cost control, it is not a standalone solution to the tyre industry’s challenges. The real impact lies in how effectively manufacturers integrate such technologies with broader operational strategies, especially as sustainability, recycling and evolving material demands reshape the production landscape.

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India’s growing importance in the global tyre and rubber industry received a strong endorsement with HF Group announcing a EUR 20 million investment in a new state-of-the-art manufacturing facility in Bengaluru.

The announcement was made during the inauguration of HF India’s new Assembly Hall Unit II, a milestone that reflects the company’s long-term commitment to India and its confidence in the country’s manufacturing future.

The proposed greenfield facility will be developed on a 10-acre site near Bengaluru Airport and is scheduled for completion by 2028. Spread across nearly 20,000 sq. metres, the new factory will be almost four times larger than the current assembly operations and will incorporate digital manufacturing, automation, smart production systems, and advanced engineering capabilities.

The upcoming facility will focus on productivity, precision engineering, sustainability, and smart manufacturing while supporting both the Indian market and HF’s global operations. The investment underlines the company’s confidence in India as a major manufacturing hub for the global tyre and rubber industry.

Ian Wilson, Managing Director & Co-CEO, HF Group, said, “This is not the end of our investment in India. It is perhaps the end of the beginning. India is entering a take-off decade and the economy runs on tyres. We see tremendous opportunities for growth and are committed to investing in the future of the Indian market.”

With more than 175 years of global experience, HF Group has steadily strengthened its presence in India. The journey began in 1995 with the establishment of Indus to serve the growing rubber processing industry. The partnership with HF Mixing Group in 2011 brought global mixing technology expertise to India, while the complete acquisition of the Indian subsidiary in 2024 marked another important milestone in the company’s India strategy.

Today, HF India manufactures and supports a broad portfolio of mixing and rubber processing equipment, including intermeshing and tangential mixers, banbury technology, mills, curing presses, and aftermarket services. The company also offers process support, training, upgrades, inspections, and spare parts under its customer-centric philosophy of ‘Holding the Customer’s Hand.’

Emphasising the importance of customer partnerships, Wilson said, “We are not here simply to sell machinery. We want to hold our customers’ hands throughout the entire lifecycle of their equipment and support them through process optimisation, performance improvements and future growth.”

As HF embarks on its next chapter in India, the new facility represents not only an investment in manufacturing capacity but also a long-term commitment to localisation, technology and customer partnerships.

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TBC Corporation (TBC), one of North America’s largest marketers of automotive replacement tyres through wholesale and franchise operations, has named Ron Harper as its new Chief Supply Chain Officer. He will report directly to President and CEO Don Byrd and assume responsibility for the company’s entire supply chain function.

Harper brings over 26 years of experience steering global supply chains for multi-billion-dollar enterprises. His most recent role was Executive Vice President of Supply Chain at PrimeSource Building Products, overseeing planning, inventory, repack operations, service metrics and analytics. He has also held senior logistics and strategy positions at Sonepar USA, Nordstrom, Samsung SEA, and JCPenney.

The new chief holds a master’s degree in supply chain management from the University of Denver and a bachelor’s in industrial management from Michigan Technological University. His appointment underscores TBC’s focus on strengthening operational efficiency and logistics performance.

Byrd said, “Ron’s depth of experience in building transformative supply chain solutions aligns with our deep commitment to providing customers with the high-level efficiency, product availability and agility they expect from TBC. As market needs change and demands fluctuate, TBC is continuing to respond by having a supply chain strategy that minimises disruptions and maximises efficiency to ensure the highest levels of customer support and satisfaction.”

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