China’s Tercelo Tire Group is taking a measured, niche-led approach to global expansion, with India’s fast-growing mining sector firmly in its sights.

At a time when global tyre markets are being reshaped by regulation, geopolitics and intense pricing pressure, China’s Tercelo Tire Group is pursuing a strategy that favours clarity over scale. Rather than chasing volumes across crowded segments, the company is focusing on specific markets and applications where long-term demand fundamentals are strongest.

Nowhere is this approach more evident than in India, where Tercelo is positioning itself squarely within the off-the-road (OTR) tyre segment, aligned with the country’s rapidly expanding mining and infrastructure ecosystem.

The Chinese company, part of the Fortune 500 company Wuchan Zhongda Chemical Group, is a nine-year-old tyre maker selling products under the Tercelo, Transmate, Superhawk, Yingba, Three-A and Rapid brands, among others. The company claims to have over USD 7.2 billion in annual operating revenue and growing.

In an exclusive interaction with Tyre Trends, Akash Gupta, Country Manager – India & Africa, Tercelo Tire Group, said, “We are very new in this segment. We can say we are a small baby (in India) right now. But we are entering the market with a very clear mindset – slow growth, strong quality focus and very specific targeting.”

For a Chinese tyre manufacturer, India is not the easiest market to enter. It is fiercely competitive, dominated by strong domestic brands and governed by increasingly strict trade and quality regulations. Yet, Gupta believes that these very challenges make India strategically compelling.

“India is a very big market for the tyre industry. People like economical tyres – affordable tyres. Historically, Chinese brands always had some presence because of price competitiveness. Even a 10 or 20 percent market share is very big in India,” he said.

However, that landscape has changed significantly over the past few years.

CHOOSING INDIA AMID REGULATION AND RESISTANCE

India’s tyre market has undergone a sharp regulatory shift, particularly in response to rising imports and the government’s push to strengthen domestic manufacturing. Anti-dumping duties, mandatory BIS certification and tighter customs scrutiny have fundamentally altered the playing field – especially for Chinese manufacturers.

“The government started anti-dumping because they are giving scope to local manufacturers. If you don’t protect them, it becomes very difficult,” Gupta explained.

As a result, entire segments are effectively closed to Chinese imports. “PCR, motorcycle and some other tyres – nobody can bring them from China now. So Chinese tyres are not coming into India in these segments,” Gupta said.

While tyres continue to enter India from countries such as Indonesia, Thailand and Japan, Gupta dismisses suggestions that Chinese manufacturers can simply reroute shipments through third markets.

“It’s not possible. A lot of people tried Dubai, but it failed. The cost is very high. You send tyres to Dubai, then again to India – the margins simply don’t make sense,” he stated firmly.

Faced with these realities, Tercelo made a deliberate strategic decision. “That is why our focus is not TBR or PCR. Our focus is only OTR,” Gupta said.

Unlike passenger or truck tyres, OTR tyres cater to a specialised industrial customer base, are less price-elastic and are closely tied to capital-intensive sectors such as mining, construction and quarrying. For Tercelo, this segment offers a more stable entry point.

He said, “OTR is a growing sector in the Indian market. We have Coal India, Adani, Reliance – a lot of mining companies. And now the government is also encouraging many small companies to enter mining.”

RISING THROUGH COVID-19

Tercelo’s rise has been shaped by disruption. The company began its manufacturing journey in 2019 — just as the Covid-19 pandemic brought global industrial activity to a standstill.

“When Covid started, all the factories in China were shutting down. But what our company did was something very different,” Gupta recalled.

Instead of retreating, Tercelo expanded. “They bought four factories in China – two for TBR, one for OTR and one for PCR. These were very major factories,” he said.

Among them were Super Hawk and O’Green Group, established manufacturing facilities with strong domestic reputations. “We started from there,” Gupta added.

This bold move allowed Tercelo to build scale quickly once markets reopened. “Today, we are selling more than one million tyres every year – OTR, TBR and PCR combined,” he said.

The company has also structured its brand portfolio carefully to address different geographies and customer expectations. “Our premium brand is Transmate/Tercelo (PCR, TBR and OTR),” Gupta explained. “Then we have Routeck (TBR) for the mid-segment, which is an economical tyre.”

For highly price-sensitive markets, Tercelo operates distinct brands. “StepRising (TBR) and EcoSaver (TBR) are only for Africa. Africa market prefers cheap tyres – low price, low quality. That is the reality,” he said.

This segmentation, Gupta believes, is critical. “You cannot sell the same tyre in Europe, India and Africa with the same positioning. Every market has its own mindset,” he averred.

INDIA’S OTR OPPORTUNITY: MINING, INFRASTRUCTURE AND LONG-TERM DEMAND

India’s mining sector is undergoing a structural expansion, driven by rising energy demand, infrastructure development and policy reforms aimed at increasing private participation.

“The government has given a lot of tenders to small, small companies to participate in mining. We believe the mining business for the next five years is going to be very big,” Gupta said.

While large conglomerates continue to dominate, the emergence of smaller operators is creating opportunities for mid-segment OTR tyre suppliers – exactly where Tercelo wants to position itself.

“We are manufacturing from small OTR to giant OTR tyres. But in India, we see ourselves more in the mid-segment of giant OTR (16.00-25 to 12.00-24),” he said. These tyres serve large dumpers, loaders and haul trucks used in coal, iron ore and limestone mines. “Big vehicles used by companies like Adani, Reliance – that is where our focus is,” he explained.

Rather than chasing aggressive volumes, Tercelo is targeting measured penetration. “We are not trying to take a big share. We are trying to enter gradually,” Gupta reiterated. The numbers reflect this caution. “We are targeting maybe two or three percent of the market initially. In the next three years, my target is five percent. I don’t want anything more,” Gupta explained.

For the executive, this is a realistic and sustainable ambition. “We are only six years old,” he says. “There are many Chinese companies – Triangle Tires, Techking Tires, Advance, Maxam – they are veterans of 20, 30, even 40 years.”

Competing with them requires patience. “Quality, consistency and service – that is how we will succeed,” he added.

REGULATORY CONTRADICTIONS AND MARKET REALITIES

Despite his pragmatic outlook, Gupta does not shy away from critiquing India’s regulatory inconsistencies, particularly in the TBR segment.

“The government has anti-dumping, but at the same time, some Chinese companies are getting BIS. Companies like Sailun, Jetsea and Double Coin – they have BIS (TBR),” he pointed out.

As a result, these brands are able to sell significant volumes. “They are selling 20,000–30,000 tyres every year, sometimes more,” Gupta revealed. For him, this creates mixed signals. He argued, “If your rules are rules, then stick to them. Why give loopholes?”

He adds that such decisions also affect domestic manufacturers. “Somehow, you are taking market away from MRF, Apollo Tyres and JK Tyre also. This feels negative,” he said.

These contradictions reinforce Tercelo’s conservative India strategy. “That is why we don’t want to get into grey areas. OTR is clean, focused and aligned with India’s growth story,” he explained.

AFRICA AND EMERGING MARKETS: VOLUME THROUGH PRICE

While India is a story of regulation and selective opportunity, Africa represents a completely different dynamic – one dominated by price sensitivity and limited technical awareness.

“I worked in Africa for almost 20 years. I know the market very well,” Gupta recalled. According to him, African customers prioritise upfront cost above all else. “They don’t want to invest a lot of money on premium tyres because their awareness is very little,” he explained.

Basic practices such as load management and tyre pressure maintenance are often ignored. “They don’t know how to drive vehicles properly, how to maintain air pressure – it’s just load and run,” Gupta said.

Premium tyres do have a niche audience. “If transporters are Indian or British, they understand quality. But local African customers want a USD 100 tyre. That is enough for them,” he said.

This lack of maintenance awareness drives high replacement demand – a reality Gupta acknowledged candidly. “Replacement is very high everywhere – India, Africa, even some parts of Asia. And trust me, all manufacturers love this problem,” he said.

He explained with disarming honesty that if customers started maintaining tyres properly, checking pressure, loading correctly, then the replacement market will reduce and business will go down. “And Frankly speaking, nobody wants that,” he said.

A MEASURED VISION FOR THE ROAD AHEAD

Unlike many new entrants who promise aggressive expansion, Tercelo’s leadership is deliberately cautious in its outlook. He averred, “We are not chasing big numbers. We are chasing stability.”

In India, that means aligning closely with mining growth, building credibility with fleet operators and gradually expanding product acceptance.

He reiterated that while the competition is severe, it is important to acknowledge that Tercelo Tire started in 2019. “Six years is nothing in this industry,” he pointed out.

Yet, Gupta remains confident that discipline will pay off. “If we maintain quality, service and pricing balance, five percent market share is more than enough for us,” said an optimistic Gupta.

As global tyre markets continue to fragment and regional strategies become increasingly important, Tercelo’s approach is looking at an alternative playbook strategy for India – focusing on a niche before building up to a larger play.

“We are starting slowly. But slow growth with the right direction is always better than fast growth with no control,” Gupta concluded. 

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Yokohama Rubber has established a new research and development centre in Hangzhou, China, as the Japanese tyre maker seeks to strengthen localised product development and speed up response times in the Chinese market.

The new facility, named Yokohama China Technical Center, began operations in May within the company’s new passenger car tyre plant in Hangzhou, which started production in November 2025.

The company said the centre would enable the local development of products specifically for the Chinese market, from initial research through to completion, helping to accelerate product launches and improve responsiveness to regional demand.

The centre will consolidate R&D functions for Yokohama Rubber’s tyre and multiple business divisions in China, while expanding engineering staff and testing facilities. Its activities will include tyre development, raw material analysis and evaluation, supplier audits, and mould drawing preparation.

Yokohama Rubber said the new operation would also support research into new raw materials and the development of local suppliers in China.

The company currently operates tyre plants in Hangzhou and Suzhou, alongside multiple business plants in Hangzhou and Weifang.

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Chhattisgarh-based technology company Aarika Innovation has introduced KoolWheel, an automated tyre water spray cooling system manufactured in India.

The product is designed for freight vehicles and school buses to manage tyre overheating caused by road surface temperatures.

The system uses IR (infrared) temperature sensors, a 5-bar pump and solenoid valves to spray a mist on tyres when temperatures exceed a threshold. The hardware operates on a 12V setup and includes a controller that requires no driver intervention. Dashboard indicators and buzzers provide alerts regarding system status and temperature levels.

The company has introduced two variants of the product for KoolWheel Freight, which is designed for trucks, trailers and multi-axle vehicles, covering up to 22 tyres across six axles. And KoolWheel SchoolSafe, which is developed for school buses and coaches, featuring a 50-litre stainless steel tank and an automatic shutoff to prevent battery drain.

The company states the system can reduce tyre temperatures by up to 25deg Celsius and extend tyre life by up to 35 percent. The technology is intended to reduce the risk of blowouts and maintenance costs for fleet operators. The product is currently available in markets including Chhattisgarh, Madhya Pradesh, Maharashtra, Uttar Pradesh, Rajasthan and Telangana.

Swayam Agarwal, Founder, Aarika Innovation, said, “KoolWheel has been created to solve a very real problem faced by Indian transporters and school bus operators every day. Tyre overheating is not just a maintenance issue; it directly impacts road safety, operating costs, and fleet reliability. With KoolWheel, our aim is to offer an affordable, intelligent, and Made-in-India solution that helps fleets run safer, longer, and more efficiently.”

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European tyre major Pirelli is starting production of its Cyber Tyre technology at its plant in Georgia. The facility produces tyres for the US market, including products for the motorsport segment.

The announcement occurred during the SelectUSA Investment Summit. Cyber Tyre is a system that collects data from sensors embedded in tyres. This data is processed through software and algorithms to communicate with vehicle electronics. The system is intended to integrate with driving systems to provide functionalities for mobility and safety.

Pirelli is also introducing the Modular Integrated Robotised System (MIRS) at the factory. This manufacturing process uses robots to manage productivity and quality. The system creates a link between product design and application. This update is intended to increase the production capacity of the site.

The Georgia plant has operated for over two decades and includes a research and development centre. The facility uses natural rubber certified by the Forest Stewardship Council.

Claudio Zanardo, CEO of Pirelli North America, said, “The start of Cyber Tyre production in our Rome, Georgia plant is a significant milestone for Pirelli in this country. It reflects our commitment to bringing advanced technologies like Cyber Tyre closer to the market, further strengthening our industrial footprint and innovation capabilities in the United States.”

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The Yokohama Rubber Co., Ltd. developed a proprietary tyre mould design support system in April 2026, integrating finite element method (FEM) simulations and the company’s own artificial intelligence technology. This new tool is designed to augment the expertise of development personnel, enabling even less experienced staff to efficiently design moulds. It achieves this by providing data derived from numerous virtual experiments, which clarify how different mould design factors influence tyre characteristics.

The system accelerates mould development, lowers costs and minimises the rework typically associated with realising new designs. Furthermore, by fostering a multi-perspective understanding of the links between mould design elements and tyre performance, the tool equips Yokohama Rubber’s developers with fresh insights. These discoveries are expected to aid in creating tyres capable of achieving higher performance levels.

Developed under Yokohama Rubber’s HAICoLab AI concept launched in October 2020, the system addresses longstanding challenges. Mould design critically affects tyre traits, but traditionally understanding this relationship required expensive, time-consuming trial production and evaluations. The process also depended heavily on the tacit know-how of highly experienced staff, leading to variations in accuracy and development time based on individual expertise.

The support system resolves these issues through automated simulations and AI-based prediction and visualisation. It first generates numerous tyre FEM models with varied mould shapes and calculates their characteristics in a virtual space. These results train an AI surrogate model that instantly predicts design factor-performance relationships. By applying explainable AI technologies like SHAP and Partial Dependence Plots, the company’s developers can quantitatively visualise each factor’s impact, easily determining necessary adjustments to achieve targeted tyre characteristics.

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