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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WACKER has earned the 2025 Gold Medal from the independent rating agency EcoVadis, marking its continued recognition for sustainable practices and responsible corporate governance. This distinction places the company within the top five percent of all businesses assessed by EcoVadis (over 1,000 companies globally). WACKER's overall score improved from 77 points (in 2024) to 79 points, driven largely by enhanced reporting and concrete actions focused on Scope 3 emissions and ethical standards.

The EcoVadis assessment measures the quality of a company’s sustainability management through a methodology grounded in international frameworks like the Global Reporting Initiative, the UN Global Compact and ISO 26000. Performance is scored from 0 to 100 across four core areas: environment, labour and human rights, ethics and sustainable procurement, using 21 specific indicators.

In line with its commitment, WACKER provides its EcoVadis evaluation to customers as a standardised and credible validation of its sustainability efforts. The company has also defined ambitious climate targets, aiming to halve its absolute greenhouse gas emissions by 2030 relative to 2020 levels. Progress is already evident, with a 30 percent reduction achieved as of 2024. Looking further ahead, WACKER strives to reach net-zero emissions across its operations by the year 2045.

Peter Gigler, Head of Corporate ESG, WACKER, said, “The result confirms our initiatives in many key areas. It provides our customers with invaluable proof.”

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Balkrishna Industries Ltd (BKT Tires), a global leader in off-highway tyre manufacturing, has appointed Craig Borman as Head of OTR at BKT USA. The appointment is in line with BKT’s long-term strategy through 2030.

Borman brings with him 20 years of experience across off-road equipment, tyres and rubber tracks. He will play a key role in leading BKT USA's OTR team and expanding the company's presence in this market while increasing awareness of the value and dependability of BKT's range of products.

Borman said, “I’m extremely excited to join the BKT family and to build off the successes that this team has already achieved. I look forward to engaging with our partners, determining how we can accelerate our mutual growth and working towards achieving BKT’s vision of being a recognised leader in the OTR segment.”

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The Supervisory Board of Continental AG confirmed a significant leadership transition during its meeting on 17 December 2025. Christian Kötz will be appointed as the new Chairman of the Executive Board and Chief Executive Officer, effective 1 January 2026. He succeeds Nikolai Setzer, who will step down from the Executive Board on 31 December 2025. Setzer's departure follows more than 16 years as a board member, including the last five years in the CEO role, and occurs by mutual agreement as the company reaches a pivotal point in its strategic evolution.

This planned change in leadership aligns with the substantial progress Continental has made in its transformation into a pure-play tyre company. Major structural milestones have been achieved, including the spin-off of Aumovio and the signing of an agreement to sell the Original Equipment Solutions (OESL) business area. Regarding the planned 2026 sale of ContiTech, internal preparations are largely complete. The market outreach phase has concluded, and a structured sales process is scheduled to begin in January 2026, setting the stage for the final step in the corporate realignment.

Kötz’s extensive background within the tyre business, dating back to 1996, positions him to lead this final phase. A member of the Executive Board since 2019, his previous leadership roles within the Tires group sector included responsibility for the passenger car tyre replacement business in the EMEA region, the original equipment and commercial vehicle tyre business units and global research and development for passenger car tyres. His many years of trusted collaboration with Nikolai Setzer are expected to ensure continuity during the transition.

Kötz will lead an Executive Board comprising several key figures. Alongside him and Philip Nelles, who has headed the ContiTech group sector since 2021, are Roland Welzbacher and Ulrike Hintze. Welzbacher joined the board in August 2025 and assumed the role of Chief Financial Officer on 1 October 2025. Hintze was appointed to the board on 1 July 2025, serving as Chief Human Resources Officer and Director of Labour Relations. This board will be responsible for driving the tyre business forward, completing the corporate realignment and, following the sale of ContiTech, integrating the remaining group functions into the tyre organisation.

Wolfgang Reitzle, Chairman of Continental’s Supervisory Board, said, “Nikolai Setzer has been instrumental in shaping Continental, realigning the organisation and paving the way for three strong, independent companies. For this, he has the thanks of the entire Supervisory Board as well as my personal gratitude. With this handover, we are consolidating responsibility for the tyre business, the realignment and the remaining tasks of the group functions in one role. Christian Kötz is one of the most distinguished managers in the global tyre industry. With his extensive experience and passion for Continental, we firmly believe he is the right choice to lead the company successfully into the future.”

Setzer said, “In recent years, we have succeeded in transforming a diverse portfolio of businesses into three strong, independent champions. After 28 years at Continental, now is the right time for me to hand over responsibility to Christian Kötz. I’m extremely grateful for the journey we’ve all shared and proud of what we’ve all achieved together. I firmly believe that the tyre business, ContiTech, Aumovio and OESL have a promising future ahead.”

Kötz said, “I would like to thank the Supervisory Board for its trust and am excited about this new responsibility. Continental has been my professional home for three decades. Together with the Executive Board team and all colleagues throughout the company, we will complete the realignment and continue the success story of our tyre business.”

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Following the 2025 General Assembly, Law Hieling has been elected to the Global Platform for Sustainable Natural Rubber (GPSNR) Executive Committee to represent the Manufacturer category. His 27-year international career at Michelin, encompassing roles in finance, commercial sales, distribution and his current leadership in natural rubber purchasing, provides a profound, ground-level understanding of the global tyre industry.

This extensive background has given him a clear appreciation for the intricate balance between commercial needs and ecological responsibility. He is committed to leveraging this perspective to help drive the collaborative, transparent and equitable solutions that are essential for a genuinely sustainable natural rubber value chain, benefiting both people and the planet.

Hieling said, “I look forward to contributing to the work of the Executive Committee in advancing responsible practices across the natural rubber sector.”

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