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.”

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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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