What does the future of tyre technology look like? The answer remains ‘pneumatic tyres’, but in the sense of greener and more digital technologies.

The ‘pneumatic tyre’ remains the only optimal long-term solution that meets expectations in all important technical parameters, even if tyre construction becomes more complex with each new vehicle generation. To the question ‘What does the future of tyre technology look like?’, the answer is still ‘pneumatic tyres’, but in the sense of greener and more digital technologies.

The increasing number of SUVs, electric cars and new types of vehicles lead to a change in tyre sizes in every markets. New vehicles come in different sizes, so the lifespan of common tyre sizes under same class vehicles available in the market is decreasing day by day. Therefore, successful SKU management and new technics are required for inventory management.

Electric cars are increasingly dominating the market with their larger load capacity, higher torque and higher requirements for tyre wear resistance. Tyres of electrical cars and SUVs are becoming larger and heavier, limiting opportunities to reduce total tyre weight on automobiles.

Electric vehicle-associated increase in average vehicle weight and acceleration speed requires changes in tyre design. Optimisation of the raw materials and chemicals used in the mix of compound formulations are certainly necessary.

Tyres are still ‘black and round’, but they are constantly evolving towards ‘more efficient, smarter and safer technologies’. Lower skid depth but better wear resistance are common approaches to higher overall efficiency. Friction requirements must be balanced with tyre pattern for safety. Minor differences of patterns might change tyre responses unpredictably.

Of course, tyres must be durable and perform properly throughout their lifetime, but there are other requirements that must be met to be accepted on the market. The basic requirements are already included in the tyre regulation. The European tyre labelling system obliges tyre manufacturers to maximise the rolling resistance, wet grip and noise level of the tyres. In addition, it is an opportunity to enter the market with better tyre ratings.

Cold working is better for endurance and for better rolling resistance, but maintaining optimum grip performance is a challenge. Optimising wet grip and tyre wear are in conflict together with tyre handling, which is critical for safety. Likewise, better aquaplaning performance does not automatically mean better wet performance, and it is difficult to optimise both at one time. The same goes for noise and traction in wet conditions. Therefore, optimising and balancing different parameters is always a science in itself.

The increasing market penetration of electric vehicles and the associated increase in average vehicle weight and acceleration speed require changes in tyre design. Noise reduction and improved rolling resistance must be balanced by improved wear resistance. Given the enormous development of new generation alternatives in recent years, optimisation of the raw materials and chemicals used in compound formulations are certainly necessary.

Improving one performance parameter in the tyre industry often has a negative impact on another metric. The use of nanomaterials in tyre tread compounds let many of the metrics get better such as durability, wear and rolling resistance and wet performance.

Lower rolling resistance means less dynamic energy is required to maximise the vehicle’s range, which is crucial for electric vehicles. Low rolling resistance tyres make it possible to increase the range of electric vehicles by up to seven percent. Continental has announced the development of a special soft rubber tread compound that helps reduce rolling resistance and noise levels simultaneously, without compromising mileage.

Current tests show that the tyres of electric vehicles wear out 20 percent faster. This is due to the additional weight, the higher engine torque and the friction effects on the tyres when energy is recovered in coasting. Reduction of RR essentially requires a lower tread depth, but it also means the tyre lasts less time and generates more noise. However, the use of nanomaterials in tyre tread compounds, which manufacturers are experimenting with, improves durability, wear resistance and extends tyre life.

Nano-silica reduces rolling resistance, thereby improving fuel efficiency, while nano-clay improves thermal stability and provides consistent performance at different temperatures. Carbon nanotubes and graphene are used to improve the mechanical and electrical properties of tyre rubber, which improves tensile strength, elasticity and compensating low conductivity caused by the high silica content in the tread compound of current tyres. However, due to high cost and low availability, their widespread application in the tyre industry is limited.

Improving one performance parameter in the tyre industry often has a negative impact on another metric, such as efficiency, and comes at the expense of another metric, such as durability or wet grip. Silica nanoparticles improve wet grip in this respect by improving the tyre’s interaction with wet surfaces, thus increasing safety in adverse weather conditions.

By 2050, all tyres will be made from direct natural sources or recycled materials, which corresponds to the global goal of net zero CO2 emissions. Growing consumer awareness is also driving demand for products made from recycled materials.

In order to achieve carbon neutrality, a ‘sharp decline in demand for fossil fuels’ is expected in the global energy sector from 2040 onwards. ISO 14068 provides principles, requirements and guidelines for achieving and demonstrating carbon neutrality, with a focus on quantifying, reducing and offsetting the carbon footprint. Growing consumer awareness is driving demand for products made from recycled materials. Industry practices and market offerings are influencing new products.

Similar to the rapid and massive increase in investments in renewable energy and capacity expansions, the sustainable tyre materials market is also expected to witness strong growth. Manufacturers are exploring biodegradable materials and using recycled components to reduce environmental impact while ensuring that safety and performance are not compromised.

Major tyre manufacturers have already set themselves ambitious goals: by 2050, they are committed to use 100 percent sustainable materials in their production. From that date, all tyres will be made from direct natural sources or recycled materials, which corresponds to the global goal of ‘net zero CO2 emissions by 2050’.

Today, it is technically possible to extract ultrafine carbon black and pyrolysis oil from scrap tyres. Other achievements include the use of bio-based butadiene from wood biomass and other plant waste as a replacement for butadiene from petroleum, recycled styrene from plastics and polyester yarn obtained from recycled PET. The extraction of high-quality, reusable steel, gas and other new materials from scrap tyres is currently practiced by some tyre manufacturers.

Tyre performance is experimented with virtual testing in extreme conditions and optimisation of tyre performance is possible before real prototypes come to life. Digitalisation offers endless possibilities for new horizons in tyre industry.

Digitalisation has revolutionised design, manufacturing, performance monitoring and durability of tyre technologies. ‘Smart tyres’ with ‘embedded sensors’ send real-time and continuous data such as pressure, temperature, tread depth and wear data to vehicle control systems and cloud platforms. Safety is provided by detecting early signs of wear or punctures.

Simulation in virtual environments allows understanding of tyre behaviour under different conditions such as temperature, pressure and road types. It is possible to reduce the number of physical prototypes and speed up tyre design cycles. Faster design and prototyping minimise the time spent on developing the tyre. Major tyre manufacturers already own simulator setups and software to virtually test vehicle and tyres altogether.

Virtual tyre testing and simulation uses AI for visualising tyre model behaviour and finite element analysis methods are used to calculate external heat, load or pressures impacts. Virtual models respond to forces, heat and wear effects. This enables virtual testing in extreme conditions and optimisation of tyre performance before real prototypes come to life. Digitalisation offers endless possibilities for new horizons in the tyre industry.

The tyre industry is increasingly placing emphasis on digital transformation and sustainability. ‘What’s next?’ is an open question for any technological industries. The ‘Next Step’ in tyre industry is the green and digital revolution. How this development is managed depends on the intellectual and technological capabilities of the tyre manufacturers.

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.”

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.”

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.

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.