The tyre industry is navigating a transformative phase, driven by evolving regulations, environmental priorities and advanced vehicle technologies. At the helm of this change in India is the International Centre for Automotive Technology (ICAT), which is aiding manufacturers in meeting current standards while preparing them for future global requirements.

The tyre industry is undergoing a dynamic shift, shaped by evolving regulations, sustainability goals and technological advancements. As one of India’s premier automotive testing bodies, the International Centre for Automotive Technology (ICAT) aims to play a crucial role in enabling manufacturers to adapt to these changes. It wants to not only meet the current needs but is also investing in ensuring that tyre makers in India are able to keep up with global future trends.

In recent years, tyre testing has seen significant changes, especially with the introduction of new regulations such as AIS 142 in 2024. These regulations have set the benchmark for tyre performance in India, compelling tyre makers to align their products with evolving standards.

“In 2024, the AIS 142 tyre performance regulation was introduced into Indian regulations. As Indian tyre regulations are rapidly evolving, the tyre industry must stay abreast of these changes,” says Saurabh Dalela, Director, ICAT.

At present ICAT is helping tyre makers meet the AIS 142 requirements, including rolling resistance, rolling sound emission and wet grip index measurements. But going forward, it is investing for future testing to cover broader areas such as STAR labelling, worn-out tyre performance and Tyre and Road Wear Particles (TRWP) emissions. This, it says, aligns with global trends, particularly in Europe, where further stringent regulations on tyre emissions are expected by 2029.

Then there is the trend of electric and alternative energy vehicles, which is also influencing testing needs. These vehicles demand tyres that can handle unique challenges, such as higher torque and quieter operations. Although Dalela notes that certification requirements for these vehicles remain unchanged, he acknowledges the growing importance of TRWP emissions, stating, “Tyre and Road Wear Particles (TRWP) may become increasingly significant for these types of vehicles.”

Capabilities and future expansion

ICAT’s tyre testing facilities are extensive, offering services ranging from endurance and load-speed performance tests to rolling resistance and wet grip index measurements. These capabilities support the industry’s diverse needs, including BIS certification and STAR labelling, both of which are crucial for compliance with national and international standards.

Highlighting its current offerings, Dalela explains, “Currently, ICAT has tyre test facilities for the following tests: Endurance Test, Load Speed Performance Test, Plunger Test/Strength Test, Bead Unseating Test, Dynamic Growth Test, Rolling Resistance Test, Rolling Sound Emission Test, Wet Grip Index Measurement Test, Mu-slip Benchmarking Test, Fuel Economy Benchmarking Test, STAR labelling and BIS certification.”

Looking ahead, ICAT is planning significant upgrades and expansions to its facilities. This includes adding two new tyre traction trailers for wet grip and benchmarking tests, establishing a BIS regulatory test facility for cycle tyres and tubes and upgrading endurance and rolling resistance machines.

Furthermore, ICAT aims to achieve ISO 17025 (NABL) accreditation for global regulations, enabling Indian manufacturers to meet international standards. These advancements reflect the agency’s proactive approach to addressing the future needs of the tyre industry.

He further acknowledges the growing importance of environmental concerns, particularly tyre emissions and particulate matter testing. While these capabilities are not currently part of its portfolio, he reveals, “We are exploring opportunities to add such facilities in the future,” signalling ICAT’s commitment to sustainability.

Challenges facing tyre makers

Despite the progress in testing and regulations, tyre manufacturers in India face several challenges. A significant hurdle is aligning with European standards, which often do not account for the unique characteristics of the Indian market. BIAS tyres, for example, initially struggled to meet European-derived performance requirements, prompting adjustments to Indian regulations.

 

Material costs and availability add another layer of complexity. Natural rubber, a key raw material, is subject to price volatility and high import duties, significantly increasing production costs. As Dalela notes, “The availability and cost of natural rubber, a crucial raw material, pose significant challenges. High import duties on raw materials further increase production costs.”

Additionally, the rising demand for unique tyre sizes, driven by the diverse range of vehicles in the Indian market, presents difficulties in development and testing. Testing facilities for these uncommon sizes are often unavailable, further complicating the process.

The lack of a formal tyre recycling or scrapping mechanism is another pressing issue. With the growing volume of discarded tyres, the absence of environmentally friendly disposal methods poses a significant challenge. Dalela’s insights highlight the need for innovation in this area. “Tyre scrapping also presents a significant challenge, as there is no proper method for scrapping or recycling tyres,” he adds.

It is important to understand that the tyre industry stands at the confluence of regulatory demands, sustainability goals and market challenges. Dalela is optimistic that ICAT’s comprehensive testing services and forward-looking initiatives will be instrumental in enabling manufacturers to navigate this complex landscape. From ensuring compliance with AIS 142 to preparing for emerging trends such as TRWP emissions and tyre labelling, the agency aims to be a leading partner to drive the future of tyre testing in India.

With planned expansions and upgrades, ICAT looks to be well positioned to support the tyre industry’s journey towards excellence and global competitiveness. As the tyre industry continues to adapt to the regulatory and customer needs, Dalela is confident of ICAT’s role as a vital partner in driving progress.

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.