VMI’s CEO Harm Voortman was among the senior figures to celebrate the global smart manufacturing technology company’s new Indian engineering and service centre, which opened in Vadodara on 4th October. He gave a positive view on prospects for the Indian tyre market: “India is now among the top five global economies,” he said. “Prospects for the tyre market are exceptionally strong. Vadodara was the natural choice for our new engineering centre, which is now part of our global strategy for customer support, software engineering and long-term growth.”

VMI has been operating in India for years, but the new centre marks a step change for the company’s investment in the region. So what does VMI’s new strategy mean for the Indian tyre and automotive industry?

Helping to drive economic growth

India is the world’s fifth largest economy, and a key driver for growth is large-scale investment in road and transport infrastructure. There is growing demand for tyres, especially for trucks, with higher performance standards a must. Infrastructure investment will have a positive impact on the Indian economy, helping make India an even stronger global economic hub.

As we reported in July, VMI’s unique MILEXX automated truck tyre building machine is playing a major role in transforming access to the high-quality truck tyres the logistics industry needs inside India. With more and more Indian citizens also moving to electric vehicles, the need for improvement in quality and performance for car tyres is also clear.

Mike Norman, VMI’s Chief Commercial Officer, said, “We expect to see growth in production accelerate over the next five years – and that goes a long way to explaining why VMI has chosen this moment for major new investment in the Indian market.”

Global software engineering

Perhaps the most compelling reason for VMI’s Vadodara investment is the drive to create an integrated, international software engineering capability for the entire business. India is the world’s most important centre for software capabilities: with home-grown businesses becoming household names and foreign companies building their own Indian research and engineering centres, tapping into the outstanding engineering capabilities India provides.

Automation is the key distinguishing feature of VMI production platforms. From the launch of the MAXX TBM 15 years ago, the concept of ‘hands-off, eyes-off’ has dominated VMI’s design thinking. Stage by stage, new concepts, components and functionalities have been introduced to VMI machines, aiming to reduce human contact and deliver error-free, higher quality, maximum efficiency production.

Vision systems were introduced a decade ago to carry out such key tasks as centring materials correctly, making the right cuts and ensuring consistent quality in output. As improved camera and software options become available, VMI introduces them as standard components to new machines and offers retrofitting to the installed base, enabling customers to operate at best practice level always.

Artificial intelligence and machine learning (AI & ML) are now increasingly vital for VMI production platforms, which drives the need for software engineering capabilities of the highest quality. VMI has developed systems that use AI to identify anomalies (foreign bodies and faults in materials), enabling these issues to be dealt with at once, rather than causing scrap later. The same capabilities will soon be deployed to optimise production.

Smart software is the key to these emerging trends. As demand for new AI-related capabilities accelerates, VMI is building the high functioning, global software engineering team it needs to prosper in this emerging world. By creating an attractive, well-managed centre in Vadodara, VMI expects to mobilise some of the most qualified, ambitious and visionary engineers India can offer. The team is truly global in nature, using a common engineering platform to enable cross-border collaboration and deliver real benefits both to VMI and the Indian economy.

Why is software so important?

Most commentators believe the industry is at an inflection point, where the current business model is changing fast. We see a growing need for many more tyre variants (SKUs), caused by such factors as the move to EVs, need for lighter but stronger and more flexible tyres, introduction of more environmentally responsible new materials (due to lower levels of particulate pollution) and different patterns of demand in the market.

As Norman commented, “The industry is being challenged to move to a different model, with greater production flexibility, less waste and scrap, lower energy costs and reduced emissions.” That means greater process agility and even higher levels of automation. We will need to develop autonomous decision making (requiring AI & ML), near elimination of errors and scrap (better automation of all processes) and the ability to switch from one SKU to another, with short production runs that are still profitable.

None of these changes can happen without intelligent software. Norman added, “The Vadodara investment gives VMI the scale and skills to become the industry leader in flexible AI-enabled systems – with India at its heart.”

Service transformation

The Vadodara centre also means VMI now has a global network of service centres to provide 24/7 ‘follow the sun’ support to customers worldwide. Vadodara is a key part of VMI’s ‘Global but Local’ service approach, covering everything from maintenance, parts and troubleshooting, through to optimisation consulting and training, retrofits and upgrades and remote monitoring to ensure optimal operation.

 

The Global but Local concept means customers are always served by teams that speak their language and share their culture but operate to consistent, best-practice standards – everywhere. All VMI’s service engineers use the same tools and methods, covering service desk, innovation, core R&D, order engineering retrofits and upgrades.

The Vadodara centre builds on and extends the service support VMI delivers to Indian customers. Now, for example, it is easier and quicker to carry out a routine service on such key components as drums by ‘being local’, with a full maintenance and service facility, minimising downtime and cost. This makes it possible to use a ‘lifecycle approach’ for drums, with much faster swap-over than before.

Investing in the future of India

India is emerging as a highly attractive investment market – perhaps as important as China to foreign companies. Past infrastructure investment levels have been relatively low in India, so there is widespread support for the growth policy now being followed. With the tyre industry now going through a period of significant change, there is huge opportunity for the Indian economy to become one of the most important tyre-building centres in the world.

 

Norman said, “These are exciting times for us to expand our presence in India. We will be helping to growth the economy in a key sector while tapping into the most important pool of software expertise on earth. As the focus on smart software grows more intense in the next few years, we expect our new Indian colleagues to play a key role in growing both VMI and the Indian economy.”

The European replacement tyre market displayed mixed signals in the first quarter of 2025, with consumer tyres growing modestly while truck and agricultural segments contracted, according to data released by the European Tyre and Rubber Manufacturers’ Association (ETRMA).

Consumer tyre sales grew 3 percent in the first quarter compared to the same period last year, continuing the recovery observed in the second half of 2024. The all-seasons segment emerged as the standout performer with a robust 14 percent growth, whilst winter tyres rose 5 percent. Summer tyres declined by 3 percent.

"In Consumer tyres, the recovery observed in the second half of 2024 (+8 percent) has continued in the first quarter of 2025. Volumes were close to those reached in the first quarter of 2019, before the impact of the pandemic," said Adam McCarthy, ETRMA's Secretary General.

The truck tyre segment, however, showed weakness with a 4 percent decline compared to Q1 2024 and remains 11 percent below pre-pandemic levels. Agricultural tyres mirrored this downward trend with a 4 percent reduction, whilst motorcycle and scooter tyres grew 7 percent against what the association described as "a relatively weak first quarter of 2024".

McCarthy attributed the truck segment's poor performance to "economic and political uncertainties" affecting the market.

The data reveals a striking trend in tyre imports, with passenger car and light truck tyre imports into Europe surging 12 percent in the first two months of 2025 compared to the same period last year. This follows a 17 percent increase in 2024, with Chinese imports up 18 percent, Korean imports up 30 percent, and Indian imports up 34 percent.

Industry analysts suggest this import surge reflects both consumer cost pressures and production challenges facing European manufacturers.

"Pressure on household budgets has increased demand for low-cost imports whilst European tyre production costs, particularly for energy, have increased at a faster pace than in other regions," the ETRMA report noted.

In a separate trend, truck and bus tyre imports from outside Europe grew 8 percent in early 2025, with ASEAN countries now representing over 60 percent of imported volumes. Vietnam's share has grown significantly, accounting for over a quarter of imports in the period.

The association also highlighted that despite significant changes in mobility patterns, with car traffic yet to fully recover from pandemic lows, the total light vehicle fleet in Europe grew by 1.4 percent in 2024, adding more than 4 million vehicles. Light commercial vehicles showed stronger growth, driven by e-commerce and last-mile delivery expansion.

The report estimates that nearly 4.5 million tonnes of used tyres were generated across Europe in 2024, with only about 600,000 tonnes reused or retreaded.

Ralson Tire North America (RTNA) has made some strategic changes in its top management with an aim to strengthen its foundation for the future. The company has promoted Mark Roe to Vice President of Sales for the company. Roe previously served as Vice President – Sales (West) for the company. Apart from this, Christy Neito has been promoted to the role of Business Manager for RTNA.

According to the company, Roe will work closely with all RTNA sales managers to assign roles and coordinate execution, which will improve performance and focus throughout RTNA.

Neito has over 20 years of expertise in operational administration, bookkeeping and office management. She joined RTNA in 2023. Neito will be in charge of banking and accounting coordination, cash management, compliance and administrative assistance for HR services as part of her enlarged duties.

RTNA Senior Vice President Brian Sheehey, said, “Mark brings over three decades of rich experience in domestic and regional sales within the tyre industry and has been an integral part of RTNA since 2024. His deep industry expertise and leadership will be key drivers in strengthening our sales organisation.”

“Christy’s expertise and collaborative approach will be pivotal as we scale operations. We are confident that these changes will further propel RTNA’s growth trajectory and strengthen our foundations for the future,” added Sheehey.

Hyderabad-based manufacturer targets 2 million monthly units within five years

In recent years, Hyderabad-based ARL Tyres has proven to be a versatile and innovative player with ambitious strategic goals. From providing specialised rubber items to the Indian military to creating innovative solutions for the emerging electric vehicle segment, ARL Tyres has shown remarkable resilience since its inception as a family enterprise in 1983.

With production levels now crossing 150,000 units per month and ambitious goals to reach two million units per month in five years, ARL is placing itself at the cusp of conventional industrial manufacturing and future mobility solutions. Its recent appearance at the Ride Asia EV Expo showcased the company’s wide range of products and its dedication to supporting India’s developing transportation infrastructure with niche products such as Smart Tyres and terrain-specific Mud Master range.

Hyderabad-based ARL Tyres, a division of Agarwal Rubber Limited, recently showcased its products, including tyres and tubes, at the Ride Asia EV Expo held at Bharat Mandapam this year. The company has established itself as a trusted partner for the Indian Army and Indian Air Force. It offers a comprehensive range of products, including tyres for two-wheelers, three-wheelers, and Light Commercial Vehicles (LCVs). It is also known for manufacturing Smart Tyres.

Growth Plans

The types of tyres being produced at this company include those for ultra-light trucks, two-wheelers, forklifts, tractors and light trucks. The company manufactures approximately 12,000 tyres daily at its production facility, selling across different areas of the country due to a 400-strong network of exclusive dealers.

According to Gautam Ghosh, Head-West Zone at ARL Tyres, “We are very optimistic about tyre sales in 2025 as there is tremendous potential in the EV sector. So far, in 2025, we have been averaging close to 150,000 units per month. Expect us to touch 0.2 to 0.25 million units a month by the end of this year.”

Continuing the expansion plan, the company intends to touch at least two million monthly units in five years. This growth is supported by its extensive network of exclusive dealers distributed across various regions of India.

Technical Expertise and Manufacturing Capabilities

In 2000, ARL Tyres gathered in-depth knowledge about all the major tyre technologies, manufacturing processes and industry standards. Apart from tyres, this ISO 9001:2015-certified company is also known for manufacturing high-quality flaps, envelopes, curing bags, bladders and butyl tubes.

Today, the company boasts an ultra-modern tube manufacturing unit that produces roughly 50,000 high-grade butyl rubber automotive tubes. While the range begins with two-wheeler sizes, it also extends to the aviation and OTR (Off-The-Road) sectors

Defence Sector Connection

Since 1996, ARL’s technical expertise in rubber has enabled it to supply tubes to the Indian defence sector. The durability and performance of its products have made ARL a preferred OEM supplier for the Indian Air Force, Indian Army, BEML (Bharat Earth Movers Limited), and HAL (Hindustan Aeronautics Limited).

Products for E3W Segment

For the electric three-wheeler market, which includes auto-rickshaws (passenger and commercial) and e-rickshaws, ARL offers both tube-type and tubeless tyres in sizes 4.00-12 and 4.50-12. The company markets two brands for this vehicle category: the Savera and the Xtreme.

According to the company, individuals should choose the Savera for its performance, safety, and durability on urban and semi-urban roads. Its non-skid Depth (NSD) ranges from 5.5 mm to 6.5 mm, which gives it good grip and safety. It would be useful as a passenger and cargo tyre.

On the other hand, ARL Xtreme is a tube-type tyre that optimises long-lasting performance, grip and safety on various roads. It differs from the Savera in terms of design and safety. Unlike the Savera, an NSD of 9mm is available here. Engineers at ARL have created a stylish design for the Xtreme that balances aesthetics and functionality with advanced technology.

Global Reach and Partnerships

Beyond the domestic market, ARL exports its products to more than 60 countries worldwide. Over the years, ARL Tyres has forged a few partnerships with top brands and continues to do so. For example, the company partnered with Chandu Champion, cheered India at the Paris Olympics through its ‘Jeet ki Aur’ campaign, and sponsored RCB during IPL 2025.

Innovative Offerings

Among its unique propositions, ARL offers OEM test drives with new tyres at specific locations, allowing auto manufacturers to fine-tune vehicle designs according to tyres and provide targeted inputs. It also sells Smart Tyres with scientific tread designs for efficient movement. The cross sipes on these tyres differ greatly from regular tyres and help grip wet and muddy surfaces. Instead of relying on vehicle technologies, these tyres are themselves available with real-time monitoring capabilities.

Company History and Client Base

ARL was founded as a family business in 1983 and became a tyre manufacturing company. Mobility companies such as Maa Luxmi India and Ferranza Electric Vehicle Private Limited, which were present at the Ride Asia Expo EV, are clients of ARL, as are the OEM manufacturers Omaha, Arel and Yakuza. While ARL’s trials for the Thukral Electric Bike have already commenced, the dispatches have not yet begun.

 

The European Tyre and Rubber Manufacturers’ Association (ETRMA) has promoted Stella Mathioudaki to Director, Product Stewardship & Sustainability of the association.

Mathioudaki has a PhD in Physics – Materials Science from Université de Namur and has been associated with ETRMA since November 2023, working in the capacity of Senior Manager – Materials Stewardship. Before joining ETRMA, she worked as Senior Chemicals Policy Consultant at Acumen Public Affairs. Mathioudaki will spearhead important projects on tyre sustainability, including recycling, retreading and the wider shift to a circular economy, in addition to supervising the industry's efforts on responsible material usage and regulatory compliance in her new position at ETRMA.