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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CEAT Limited plans to invest INR 13-14 billion in fiscal 2027 to expand capacity and support growth, as the tyre maker rides strong momentum from a record FY26 while preparing for a near-term squeeze from raw material inflation.

The capital expenditure programme—up roughly 25 percent from the previous year—comes as capacity utilisation remains elevated at 85–90 percent across categories, necessitating incremental investments to meet demand.

Chief Executive Arnab Banerjee said the company would remain “careful” in the first quarter amid volatile input costs and macro uncertainty, before scaling up spending as conditions stabilise.

Additional investments are also being channelled into integrating the CAMSO off-highway tyre business, with about USD 30 million earmarked for upstream capabilities such as compound mixing and calendering. The integration is expected to be completed by the end of FY27, unlocking margin benefits from FY28.

Record year underpins expansion

The investment push follows a strong FY26 in which CEAT delivered double-digit growth across segments.

Standalone revenue rose 15.5 percent for the full year, while fourth-quarter revenue grew 18.2 percent, crossing INR 150 billion in annual revenue for the first time.

Growth was driven by a combination of volume expansion and pricing, aided by GST rationalisation that improved affordability and boosted demand across replacement and OEM channels.

Replacement demand remained robust, particularly in two-wheelers, while OEM growth was led by passenger vehicles and farm equipment. International operations also rebounded strongly, with high growth in Europe and the U.S.

Profitability milestones

CEAT crossed a key profitability threshold, with EBITDA exceeding INR 20 billion for the first time and margins holding at 13.4 percent for the full year.

Net profit stood at INR 8.12 billion, supported by operating leverage, cost discipline and an improved product mix.

Finance chief Kumar Subbiah said the company’s balance sheet remains “strong enough to provide growth capital”, with debt levels stable at around INR 30 billion  and leverage metrics improving.

Global expansion and premium focus

CEAT is deepening its international footprint, setting up local entities in Germany, the UK, France and Poland to strengthen distribution and customer engagement.

Exports now account for over one-fifth of standalone revenue, rising further when including CAMSO, as the company expands in higher-margin markets.

The tyre maker is also focusing on premiumisation, with increased sales of larger passenger vehicle tyres and high-performance two-wheeler tyres, alongside a growing presence in electric vehicle segments.

Digital and EV strategy

The company is investing in digital infrastructure, including a centralised data lake and AI-led analytics capabilities, aimed at improving operational efficiency and decision-making.

In electric mobility, CEAT holds about 29 percent share in passenger EV OEM tyres and 18% in electric two-wheelers, positioning itself to benefit from the sector’s growth.

Cost headwinds loom

Despite strong fundamentals, CEAT faces mounting cost pressures.

Raw material costs—linked to crude oil and natural rubber—are expected to rise sharply, with management guiding for a 15 percent increase in the first quarter of FY27.

To mitigate the impact, the company is implementing price increases of up to 10 percent in the replacement market, though pass-through in OEM and international segments will occur with a lag.

Executives cautioned that demand may moderate as higher prices take effect, particularly in price-sensitive categories such as commercial vehicles.

Outlook

CEAT expects demand to remain broadly supportive, underpinned by rural cash flows, replacement cycles and ongoing economic activity, though growth is likely to moderate from FY26 levels.

“Structural demand drivers remain in place,” Banerjee said, adding that the company is positioned to navigate near-term volatility while sustaining long-term growth.

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TBC Corporation, one of North America’s largest marketers of automotive replacement tyres through wholesale and franchise operations, has elevated Greg Ortega to the role of Chief Purchasing Officer. The promotion places Ortega on the company’s executive team, where he will be responsible for global purchasing strategies and supplier relationships, reporting directly to President and CEO Don Byrd.

With a career at TBC spanning more than three decades beginning in 1996, Ortega brings over 30 years of experience in purchasing, merchandising, product marketing and sales. He most recently served as Group Vice President, overseeing consumer and commercial tyre procurement strategies while strengthening key supplier partnerships. His rise through progressive leadership roles underscores his long-standing impact on the organisation.

Ortega holds a bachelor’s degree from California State University, San Bernardino, as well as advanced degrees from the University of Notre Dame and Michigan State University. He also earned two professional certifications from the Institute for Supply Management: Certified Professional in Supplier Diversity and Certified Professional in Supply Management.

Byrd said, “Greg’s tenure at TBC has given him in-depth knowledge of our business and industry, and in his new role, he will continue to strengthen our company by leading our integrated, enterprise-wide approach to purchasing. Greg has served a critical role in shaping key relationships to support our competitive advantage and positioned us for long-term growth.”

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WACKER has announced a leadership change in its Polymers division, effective 1 May 2026. Maximilian Peter, a doctorate holder in chemical engineering and a company veteran since 2012, assumes the role of the head of Polymers division. His prior experience includes process development, Corporate Development and most recently Human Resources.

On the same date, outgoing Polymers head Peter Summo transitions to lead Sales & Distribution. Summo, who led the division for a decade, brings a business administration background and joined WACKER in 1995 after starting his career at Akzo Nobel. He has since served in multiple management roles.

Peter Summo

The restructuring places both executives in new senior positions, ensuring continuity in polymer operations while refreshing commercial leadership. Summo’s long tenure in the division gives way to Peter’s broader internal track record across engineering, strategy, and personnel functions.

Christian Hartel, CEO, WACKER, said, “With Maximilian Peter and Peter Summo, we are filling two key positions at WACKER with experienced colleagues who have already played a decisive role in using their expertise to shape the company. As head of the Polymers division, Maximilian Peter will continue to drive forward its regional expansion. Peter Summo will continue to forge ahead with WACKER’s market and customer focus and promote sales excellence throughout the company. I wish them both every success in their new roles and look forward to our continued collaboration going forward.”

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Himadri Speciality Chemical Ltd is positioning its tyre business as a key growth driver, backed by calibrated investment, product expansion and a long-term plan to scale operations across domestic and export markets.

The company’s re-entry into the tyre segment through the revival of Birla Tyres marks a strategic diversification beyond its core speciality chemicals and carbon materials business. In its first year of operations, the tyre division generated revenue of INR 1.87 billion, reflecting an early-stage but measured recovery.

Management has outlined an ambitious medium-term target to scale the business to around INR 30 billione in revenue over the next four years, signalling a significant ramp-up in capacity utilisation, distribution reach and product portfolio.

The investment strategy is deliberately phased. The company is prioritising product-market fit, channel expansion and brand repositioning before pursuing volume-led growth. It has already established a distribution base of 43 distributors and more than 1,000 dealers, providing a platform for scale.

“We are approaching the revival of our tyre business in a calibrated manner, focusing first on product-market fit, channel strength and brand positioning before scaling volumes,” said Anurag Choudhary, Chairman, Managing Director And Chief Executive.

At the product level, Himadri is strengthening its presence in agriculture and commercial vehicle segments, where brands such as KalaPatthar and Shaan+ are gaining traction. New launches, including AgriPlus and AgriWin tractor tyre series, are expected to support near-term growth.

Looking ahead, the company plans to expand into passenger car radial tyres, with commissioning targeted over the next 24 months. The strategy will focus on electric vehicle-specific tyres, leveraging Himadri’s expertise in carbon black chemistry to develop higher-performance products with improved durability and efficiency.

“Our objective is not merely to regain market presence, but to build a differentiated and competitive tyre business that can sustainably grow across domestic and select international markets,” Choudhary said.

Capacity expansion and production ramp-up will be aligned closely with demand visibility over the next 12–24 months. The company indicated that utilisation levels will increase progressively, supported by new product introductions across agriculture, mining and commercial vehicle segments.

Alongside manufacturing, Himadri is investing in process improvements and supply chain capabilities to ensure consistent quality as volumes scale. The broader objective is to build a differentiated tyre business rather than pursue rapid expansion at the cost of margins.

Management said the tyre division remains at an early stage but is expected to evolve into a meaningful contributor to overall growth in the coming years, complementing the company’s advanced materials and speciality chemicals portfolio.

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