Assuming nothing will be the same with COVID-19, all associated economic growth figures will be revised in the near future. The European tyre market was severely affected in the first quarter of 2020 and declined by around 20% in all segments, which is exactly the opposite of the previous forecast of achieving a total CAGR of 20% for the 2018-2022 period. It will not return to normal short-term trends and will certainly be revised.

With the global economic slowdown, the Chinese tyre market, with earlier growth of more than 6%, will no longer be mentioned in the coming years. The global pandemic has overshadowed the global economy, and the most important tyre manufacturers are only showing moderate optimism for 2020. The downward trends in demand in many international markets are therefore irreversible. When the entire industry is back on track and at the same time safe?

Tyre Industry will not return to normal short-term trends and all economic figures will certainly be revised.

In the 1950s and 1960s, the margins for industrial products were good. Many companies in industrialised countries have been looking for alternatives to invest in different parts of the world, and export rates have continuously helped them make enough money. So far, globalisation has prompted investors to tackle the underdeveloped eastern globe. The 1970s in this direction were the new way of investing a large amount of accumulated capital for the countries of the Far East. China and Singapore, then Vietnam, Thailand and Malaysia were the subject of foreign direct investment. Indonesia seems to lag behind the Philippines and Taiwan for foreign investors. Exceptionally, Japan and partially South Korea won in the early 1950s and 1960s and were more aware of the importance of technological culture. They managed to develop their own capital to invest in technological products. The tyre and rubber industry were two of the main companies.

Globalisation has prompted investors to tackle the underdeveloped eastern globe. The 1970s in this direction were the new way of investing a large amount of accumulated capital in Far East.   

Western automakers had also sparked interest in countries in the eastern world. This has helped investors to focus more on this part of the world. When investors were looking for new horizons to make more money, all supporting technologies came to these countries.

When we entered the 1990s, Glasnost began to influence Europe's socio-economic structure. The main European brands initially focused on Eastern Europe to invest in the main products. Foreign direct investment went to the Central and Eastern European countries. Major European brands in the tyre industry have acquired certain tyre factories. Some factories were opened late.

It is a difficult task to attract foreign direct investment. Many parameters need to be combined, including incentives, laws, rules, agencies and procedures to attract foreign investment. The Central and Eastern European countries spent a lot of time and effort and finally made it. Not only legislative issues, but also macroeconomic measures such as combating inflation, the goal of joining the euro area, setting competitive but sustainable tax rates and laying the foundation stone for companies that acquire applications for property permits, liberalisation of the labor market, privatisation of all areas of the economy finance, public services and telecommunications, as well as road and airport construction are different pieces of equipment than investors. Usually you look for them first.

When we reached 2000, the primary concerns of European and North American tyre manufacturers were attacks on poor quality tyres

The Czech Republic, Hungary, Poland and Slovakia are the first four countries to follow. Ukraine, Romania, Bulgaria and Croatia tend to attract foreign direct investment over time. In any case, they have all learned that low labour costs are not enough to attract foreign investment if the main attractive features are not realised.

When we reached 2000, the primary concerns of European and North American tyre manufacturers were attacks on poor quality tyres in the East and Far East regions. Instead of banning imports, the safety problems of tyres in this part of the world are highlighted and certain measures are taken to prevent the huge import channels of these branded tyres. ETRMA, the association of the largest tyre and rubber manufacturers, mainly followed the REACH restrictions of these companies. The media also supported user conscience. The tyre labeling is also the result of safety concerns. The European Commission and the White House have introduced additional anti-damping and additional countervailing duties on tyres made in the Far East. The cheaper tyres no longer had the opportunity to be rated well. Note, however, that companies in the Far East are now able to manufacture high-quality high-tech tyres and organise deliveries in the market.

At the other end of the world, many industries which invest mainly in China initiated alternatives to return to the continent in 2015.

When the time came, the former Eastern Bloc countries began to join the EU. After 2010, Chinese and Far Eastern tyre manufacturers accelerated or invested in new factories in Eastern Europe. South Korea and China have started to have tyre factories in this region. Tyres manufactured in Europe or Eastern Europe indicate the Western European and US markets and are exempt from high customs taxes. They have set up a production line that is adapted to the requirements of European and American consumers.

When we reached the other side of the world in 2015, many industries with investments mainly in China initiated alternatives to return to the continent. Export tariff barriers and rising labor costs, state requirements for environmental legislation and industrial reforms do not keep foreign investors and local companies alive. The international climate and the atmosphere of the trade struggle between East and West also play a role in this latter trend. Today, investments in Eastern Europe in the countries of Asia and Western Europe continue. However, this is not a guarantee for the next few years.

Whatever the truth is or it is assumed that yesterday's reality will be opposite or different. Therefore, nothing will be similar or as expected. Companies that covered risks today and had tools today are luckier and will be successful tomorrow.

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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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The Rubber Board of India has announced the appointment of N Hari as its new Chairman, effective for a tenure of three years. Hailing from Pallikkathode in Kottayam, Kerala, Hari brings considerable experience to the leadership role, having previously served as a Board member representing small rubber growers from the state.

His initial term on the Board commenced on 28 June 2022 and spanned three years. During this period, he also held the position of Executive Committee Member from 7 October 2023 to 6 October 2024. This progression from membership to the executive committee and now to the chairmanship reflects his sustained engagement with the organisation.

His appointment is expected to steer the Board's initiatives in supporting the rubber sector, focusing on grower welfare and industry development across India.

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The Indian automotive landscape is currently undergoing a seismic shift. Driven by the rapid rise of rural urbanisation, an aggressive government push for electrification and the development of world-class road infrastructure, the industry is witnessing a period of robust growth. With sales of both new and used vehicles touching record highs, the demand for high-quality tyres remains in a significant upswing.

At the helm of one of the market’s most prominent players is Rajarshi Moitra, Managing Director of Bridgestone India and Vice-Chairman, Automotive Tyre Manufacturers’ Association (ATMA).

In an interaction with Tyre Trends, Moitra discusses the company’s future-ready roadmap, from its substantial capacity expansions to a ‘sharp and deep’ strategic focus designed to maintain leadership in an increasingly premium and electrified market.

A BULLISH OUTLOOK ON THE SUBCONTINENT

While global economic indicators remain varied, Moitra is unequivocally optimistic about the local trajectory. “The Indian automotive industry is at an exceptionally positive juncture from a medium-to-long-term perspective,” he asserts.

This optimism is grounded in several structural tailwinds that suggest India is slated for very strong growth. Key among these factors is the sheer room for market expansion.

“Firstly, we are still significantly under-indexed in terms of car penetration, with only 50 cars per 1,000 people – well below even some smaller developing nations,” Moitra explains.

Furthermore, the geographical spread of wealth is changing. Bridgestone is observing massive growth in Tier 2, 3 and 4 towns, a phenomenon Moitra attributes to ‘rural urbanisation’.

Bridgestone India estimates a transformative half-decade ahead for the industry. “The number of affordable households – those capable of purchasing a car – will double in India over the next five year. When you couple this with the government’s massive capital outflow into road connectivity and the rise of e-commerce, it creates a very bullish environment for both passenger and commercial mobility,” Moitra says.

THE ‘SHARP AND DEEP’ STRATEGIC PILLAR

Despite India being the world’s largest two-wheeler market, Bridgestone is famously absent from that segment – and intends to stay that way for now. Moitra clarifies that the company’s philosophy is rooted in specialisation rather than horizontal expansion. “At Bridgestone, we believe in being ‘sharp and deep’ in our strategy,” he says.

Currently, Bridgestone India’s business split is heavily weighted towards the consumer segment, with 70 percent of sales coming from Passenger Car Radial (PCR), 25 percent from Truck and Bus Radial (TBR) and 5 percent from Off-the-Road (OTR) segment.

“We see enough headroom for growth within the passenger car segment across products, channels and customer experience, so we are focusing our resources on maintaining our leadership there,” Moitra notes, dismissing any near-term plans to enter the two-wheeler space.

Instead, the company is doubling down on ‘white spaces’ within the consumer car category, specifically targeting higher rim diameters and specialised compounds for Original Equipment Manufacturers (OEMs).

INVESTING IN CAPACITY AND LOCAL INTELLIGENCE

To support this growth, Bridgestone is moving aggressively on the manufacturing front. With current operations running at 90–95 percent capacity, the company is in the midst of a major investment cycle.

At present, the company’s Pune plant has a capacity to produce 4.01 million passenger car tyres and around 693,000 truck & bus radial tyres, while the Indore plant has a capacity to produce 7.11 million radial tyres for passenger cars and light trucks.

“Our last major investment was USD 85 million in October 2024, which is being ramped up in phases through 2029,” Moitra confirms. This capital is being used to scale volumes and enhance technical capabilities at the Indore factory.

The new investment is expected to further add 1.1 million tyre production capacity in Pune by CY2029, thus taking its total production capacity to around 11.1 million units in the country.

“Our strategy is two-fold: we want to be future-ready for market demand while simultaneously sweating our current assets to drive higher efficiency,” Moitra explains. Crucially, this expansion isn’t just about physical output; it’s about local autonomy. Moitra highlights that a ‘very large part’ of procurement is now local, decided by teams on the ground in India.

The launch of a Satellite Technology Centre in 2025 has further decentralised the company’s innovation engine. According to Moitra, this centre plays a pivotal role in increasing local leverage and technical presence, allowing the Indian arm to maintain a balance between local agility and global sourcing.

EVs AND PREMIUMISATION

As the Indian market matures, consumers are demanding larger wheel sizes – a trend Moitra says is led by OEMs. “We are seeing a clear market shift towards higher inches – for example, a car like the Maruti Suzuki Swift moving from 14-inch to 15-inch and others moving from 16-inch to 17-inch,” he observes.

Bridgestone’s ‘all-inch’ strategy covers the spectrum from 12 to 20 inches, but their brand strength is most potent in these premium, higher-diameter sizes.

This premiumisation dovetails with the transition to electric vehicles (EVs). Bridgestone has positioned itself with an ‘EV-ready’ portfolio, exemplified by the Turanza 6i. “It balances long-lasting durability and safety with low noise and comfort – essential for EVs,” says Moitra. To ensure they capture this nascent but fast-growing market, the company expanded the range from 36 sizes in 2024 to 72 sizes by 2025.

The OEM relationship remains the cornerstone of this technological foresight. “The OEM segment allows us to see ahead of the curve regarding future vehicle technologies,” Moitra explains.

At present, 35 percent of their consumer business is OE-based and Bridgestone is in active discussions with many of the newer automotive entrants arriving in India.

While Bridgestone is aggressively expanding its footprint in new tyre technology and premium consumer segments, it is taking a markedly more conservative approach towards the retreading sector in India. Despite the potential for material circularity, the company does not view retreading as a strategic priority for the immediate future.

Moitra clarifies that Bandag, Bridgestone’s global retreading arm, is not currently active in India, and there are no plans to introduce it in the near-term. This decision is driven largely by the unique and challenging dynamics of the local market, which is currently dominated by cold retreading.

He points out that a significant pricing challenge exists when ‘cold retreads versus biased tyres versus some of the cheaper tyres’ are compared, making the business case difficult to justify at this stage. Consequently, Bridgestone has opted to remain focused on its core segments for the next two to three years rather than entering the retreading space.

SUSTAINABILITY AND THE ‘INSTITUTION OF RESPECT’

Beyond the numbers, Bridgestone is attempting to build what Moitra calls an ‘institution of respect’. This involves a heavy commitment to environmental goals. The Pune plant already holds the distinction of being the first carbon-neutral facility in the Bridgestone group.

“Sustainability is a core agenda across our entire value chain,” Moitra explains, noting a public commitment to reduce the company’s carbon footprint by 50 percent by 2030, including Scope 3 emissions. This holistic approach ranges from manufacturing processes to material circularity in the tyres themselves.

Looking ahead, the goal is to protect a dominant market share – currently over 20 percent by volume and 23 percent by value in the passenger car aftermarket. To do this, Bridgestone plans to expand its physical reach by 30 percent over the next five years, building upon its current network of over 4,000 touchpoints.

As the company transitions its branding from the Olympics to Formula E, the focus remains clear: high performance and the next era of mobility. “It’s the perfect platform to showcase our technological edge,” Moitra concludes.

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