Expanding its offering for the European market in the coming sales season of 2020, ZC Rubber will add 68 new sizes of its Z-series winter tyres, All Elite Season Z-401, Zupersnow Z-507, and ICEMASTER Spike Z-506.

The new size will cater to diverse demand for all weather and road conditions.

The Chinese tyre maker three Z-series winter tyre products in Europe last year, the four-season tyre Z-401, the winter tyre Z-507, and the studded winter tyre Z-506,

“So this year, to better serve European customers, we have upgraded the technology and improved the tyre performance in all aspects, and will introduce new sizes, which are already in production and are expected to be available in the second half of 2020," ZC rubber stated.

The product line now includes 142 sizes covering 13 to 19 inches in rim diameter, with much improved wet grip and lower rolling resistance. According to a test report conducted by Test World on March 9 this year, the series has improved by at least 20% in snow performance, with Z-506 making a great step forward in snow and ice performance.

“Our dealers around the world are experiencing great difficulties this year under the COVID-19 pandemic. We will increase support to our dealers in this special period, whether in product upgrading or marketing strategy.” ZC Rubber expects to meet the customer needs at different levels with continuous improvement in both products and service, eyeing for bigger market share in the future.

Indian tyre maker posts robust margins and doubles down on electric vehicle segment as it digests the Sri Lankan acquisition

Sharad Matade

CEAT delivered a strong second-quarter performance, with revenues rising 12.2 percent year-on-year, even as the company navigates turbulent US tariff waters and integrates its recently acquired Sri Lankan off-highway tyre business.

The Mumbai-based tyre manufacturer reported standalone earnings before interest, tax, depreciation and amortisation (EBITDA) of INR 5.07 billion for the quarter ended September, with margins expanding to 13.7 percent. Net profit was INR 2.02 billion, a significant improvement from last year’s INR 1.22 billion.

“We’ve had a good quarter,” Managing Director Arnab Banerjee told analysts on an earnings call, noting that gross margins had climbed back into the company’s long-term target range of 40-42 percent after benefiting from softer raw material prices.

CAMSO Bet Takes Shape

The quarter’s headline event was CEAT’s completion of the CAMSO acquisition from Michelin on 1 September, a deal that positions the Indian manufacturer as a leading player in premium off-highway tyres. The company spent INR 12.32 billion in total for the transaction: INR 2.72 billion in equity, INR 7.02 billion in debt, and INR 2.38 billion for intangibles like trademarks and patents.

Chief Financial Officer Kumar Subbiah said the acquisition pushed consolidated debt to INR 29.44 billion by quarter-end, though debt-to-EBITDA remains comfortable at 1.8 times and debt-equity at 0.64 times. “We have enough leverage to provide necessary growth capital going forward,” he assured investors.

The company has historically maintained conservative financial thresholds, preferring not to exceed debt-to-EBITDA of 3 times or debt-equity of 1 time at peak levels. Although it has never exceeded INR 21 billion in absolute debt before, management is confident in the current INR 30 billion debt level, given the growth opportunities ahead.

The Sri Lankan plant currently operates at 50 percent capacity utilisation, offering significant upside potential. However, CEAT will not gain full control of the value chain for another five to six quarters, as it continues purchasing semi-finished goods from Michelin while setting up upstream mixing and calendaring equipment.

“There have been no surprises based on one month of operation,” Banerjee said, adding that the business is progressing well and remains on track to be margin-accretive in the medium term.

Aggressive Investment Programme

CEAT is in the midst of a substantial capacity expansion across multiple facilities. The company spent INR 1.85 billion on capital expenditure during the quarter, bringing the first-half total to INR 4.15 billion. Management expects full-year capex of around INR 10 billion, excluding CAMSO acquisition costs.

The investment breakdown reveals strategic priorities: INR 1 billion was allocated to research and development, information technology, plant maintenance and moulds. Another INR 0.50 billion is being used to expand truck-bus radial tyre capacity towards 2,000 units, an ongoing multi-year project.

The Ambernath plant expansion absorbed INR 0.70 billion, while the Chennai factory received the largest share at INR 1.60 billion for passenger car downstream operations and motorcycle scooter production. Debottlenecking initiatives across facilities accounted for INR 0.40 billion.

“Expansion projects are progressing as per plan,” Banerjee said, adding that overall capacity utilisation stands at 80-85 per cent currently.

Additional investments are planned for Sri Lanka to install upstream equipment at the CAMSO facility, enabling the company to stop purchasing semi-finished goods from Michelin and control the entire manufacturing process.

Tariff Turbulence

The company faces mounting pressure in the US market, where 50 percent tariffs on off-highway tyres have nearly halted exports. CEAT’s sales of off-highway tyres to America slowed to “practically zero” by quarter-end, though passenger car and truck-bus radial exports continued.

For passenger and truck-bus radials, the 25 per cent tariff applies uniformly across countries, leaving India at no disadvantage. CEAT is partially absorbing the impact while gradually passing costs to customers over the next two to four quarters.

The CAMSO operation in Sri Lanka faces a 20 per cent duty on US exports, with roughly half of that tariff currently being absorbed. “We expect CAMSO also to pass on the full impact of tariffs in maybe two to three quarters,” Banerjee said.

Despite the low base, CEAT’s management remains sanguine. “Our stake in the US market is still very low, so the overall impact on our growth and profitability was not very material,” Banerjee noted.

Domestic Boost from GST Cut

A positive development came late in the quarter when the Indian government cut goods and services tax (GST) on tyres from 28 to 18 percent, and on farm tyres from 18 to 5 percent, effective 22 September. The move is expected to boost demand in semi-urban and rural markets.

“There is significant benefit to customers,” Banerjee said. “The 10 percent duty cut works out to around 7-8 per cent on the selling price. For a truck tyre, it could be INR 1,500 per tyre, which is significant.”

CEAT passed the entire benefit to its channel partners and advised them to do likewise for end customers. The company isn’t contemplating any price increases, given softening raw material costs.

The GST announcement created a temporary dip in September, as buyers deferred purchases and trade down-stocked in anticipation. The replacement market, which had been growing at nearly double-digit rates, contracted during the month. However, momentum is expected to return strongly.

Segment Performance

Original equipment manufacturer (OEM) sales were the star performer, surging in the mid-20s as CEAT secured fitments on cars with larger rim sizes. International business grew in the high teens, while replacement business managed mid-single-digit growth despite September’s dip.

Two-wheeler tyres saw robust demand driven by rural markets, while the passenger car segment grew in mid-single digits. Farm tyre growth in the OEM segment reached the mid-teens.

International markets delivered particularly strong results, with mid-teens growth across key clusters in Europe, Africa and the Middle East. Europe, CEAT’s most profitable export market, saw strong traction in passenger car tyres. Brazil recorded good growth in two-wheeler tyres. Passenger and truck-bus radials now account for 65 per cent of exports, with CEAT claiming to be India’s leading passenger car tyre exporter.

Electric Vehicle Push

CEAT has established strong positions in India’s growing electric vehicle segment, holding a 30 percent share in the OEM passenger car and utility vehicle EV market and a 20 per cent share in the two-wheeler EV market.

“We continue to focus on product development for emerging vehicle sizes, and we have good respect and credibility amongst OEMs to get fitted on upcoming new models,” Banerjee said.

The company launched two innovations during the quarter: SecuraDrive CIRCL, a concept tyre made from 90 per cent sustainable bio-based materials, and RockRad, a premium mining tyre showing early promise.

On the digital front, CEAT became one of the first companies to deploy an agentic chatbot on its website, currently in beta, to personalise customer journeys. The company’s website traffic exceeded 1 million, with organic traffic up 19 per cent year-on-year. Leads for premium SUV users exceeded 30 per cent, while positive brand sentiment jumped 28 per cent in average interaction per post year-on-year.

Raw Material Relief

Raw material costs provided relief, declining 5 per cent quarter-on-quarter. International natural rubber prices held steady at USD 1,700-1,750 per tonne, while domestic prices softened towards import parity by quarter-end, dropping just over INR 10 per kilogram.

Crude oil hovered around USD 65 per barrel, at the lower end of its recent range, amid weak Chinese demand and ample supply.

“Taking into consideration current base prices and the impact of rupee depreciation in the last eight weeks, we expect raw material prices to remain at current levels in Q3,” Subbiah said.

Outlook

Looking ahead, management expects to maintain double-digit growth momentum while keeping margins steady. The third quarter typically sees revenue flatten or dip slightly due to the festival season and the onset of winter, which affects northern and eastern markets.

Replacement demand for medium- and heavy-duty commercial vehicle tyres should track GDP growth at mid-single digits, while two-wheelers should be around 7-8 per cent. At the same time, passenger cars remain soft, in the zero-to-low single digits.

“The GST change will be a positive factor for industry, especially in small towns and rural markets,” Banerjee said. “We also think we’ll arrive at some clarity on the US tariff situation sometime during Q3 or Q4.”

Finnish industrial automation company Cimcorp is set to release a feature-length documentary this autumn chronicling its five-decade history and examining the sector’s future trajectory.

The film, entitled “The Future of Automation”, traces the company’s evolution from its origins within the Rosenlew Corporation in the 1970s to its current position as a specialist in automotive, tyre and grocery retail automation technologies.

“To foresee and prepare for the future, we must understand the past. It is through reflecting on our journey that we find the tools to shape tomorrow. This documentary is a tribute not only to the innovation and perseverance of Cimcorp but to the evolution of automation itself,” said Veli-Matti Hakala, Chief Executive of Cimcorp.

The documentary features contributions from current and former employees, as well as external industry figures, including Mirka Leino, principal lecturer at the RoboAI Research Centre at SAMK Pori, who discusses developments in robotics and machine vision systems.

Erik Rosenlew, son of Gustav Rosenlew, who established Cimcorp whilst serving as chief executive of Oy Rosenlew Ab from 1969, provides commentary on his father’s contribution to the automation sector.

The film covers notable milestones, including the development of cathode-ray-tube automation in the 1980s and the company’s Dream Factory concept for the tyre industry. It also examines Cimcorp’s expansion into lithium-ion battery automation and sustainable intralogistics solutions, as well as its integration into Murata Machinery.

The documentary incorporates archival material and addresses emerging technologies anticipated to influence the next 50 years of industrial automation, including artificial intelligence applications and sustainable manufacturing practices.

Cimcorp, now part of Japanese parent company Murata Machinery, serves clients across multiple industrial sectors globally.

Chinese manufacturer to showcase OTR products at the world’s largest farm machinery fair

Chinese tyre manufacturer Linglong Tire will make its debut at Agritechnica with a dedicated stand next month, marking the company’s first direct presence at the world’s premier agricultural machinery exhibition.

The Zhaoyuan-based company will occupy nearly 150 square metres in hall five at the trade fair, which runs from 9-15 November in Hanover, focusing predominantly on off-the-road products for the agricultural sector whilst also displaying tyres for commercial vehicles and passenger cars.

Central to Linglong’s exhibition is the new Spring Ultra Flex model in size VF 900/60 R32, a combine harvester tyre featuring what the company describes as a low-profile, stable tread pattern designed to distribute heavy loads evenly across the contact patch. The manufacturer claims the tyre offers 40 per cent higher load capacity than standard sizes, complemented by flexible sidewalls intended to improve ride comfort.

The display will also feature the company’s FL300, LR400, LR650 and LR7000 product profiles, catering to various agricultural applications.

Beyond product presentation, Linglong has emphasised the networking dimension of its trade fair participation. The company’s German and international sales teams will be available throughout the event for customer discussions, operating from both the main stand and a separate hospitality area branded the “Linglong Lounge”.

As part of visitor engagement activities, Linglong plans to conduct a prize draw offering a signed Chelsea FC jersey, the current FIFA Club World Cup holders. Linglong Tire has sponsored the London football club since last season.

Agritechnica represents a significant platform for agricultural machinery suppliers, with approximately 2,700 exhibitors from 52 countries occupying some 39 hectares of exhibition space. The biennial event serves as both a showcase for new technology and a forum for addressing future challenges in crop production, drawing decision-makers from across the global agricultural industry.

Radar Tires has named Anthony Paparone as its new Associate Vice President of Strategy and Analytics. Bringing over two decades of tyre industry expertise, Paparone offers a comprehensive background in strategic leadership and operational management.

His career includes significant leadership experience across various sectors, including sales strategy, pricing, dealer training and retail operations. He is recognised for his data-centric approach, consistently employing analytics, automation and process improvements to create innovative solutions that boost business efficiency and foster growth. In his new role, his primary objective will be to strengthen Radar's data infrastructure and utilise advanced analytics to refine the company's strategic initiatives and enhance its competitive standing throughout the United States.

Rob Montasser, Vice President – Sales, Radar Tires, USA, said “We’re thrilled to have someone of Anthony’s experience and knowledge join our team. His passion for leveraging data to drive smarter, faster decisions aligns perfectly with our strategic goals. Anthony’s leadership will be instrumental as we continue to scale and strengthen the Radar brand.”

Paparone said, “I’m incredibly excited to join the Radar Tires team. There’s tremendous opportunity to take our data game to the next level and turn insights into action. I look forward to working with the team to build scalable, data-driven systems that support growth and deliver real value for our partners and customers.”