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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As India’s industrial sector accelerates its shift towards cleaner energy, tyre manufacturers are emerging as a critical test case for integrating renewable power into continuous, high-load operations. In this conversation, Kuldeep Jain, Founder and Managing Director of CleanMax, outlines how demand from companies such as CEAT and Michelin is reshaping renewable procurement – from conventional solar contracts to hybrid, round-the-clock solutions – while positioning clean energy as both an operational necessity and a strategic lever for decarbonisation.

Industrial decarbonisation in India is entering a more operational phase, where renewable electricity is no longer a peripheral lever but an embedded component of manufacturing strategy. For CleanMax, this shift is most visible in energy-intensive sectors such as tyre manufacturing, where continuous processes, global supply-chain pressures and ESG commitments are converging to reshape how power is procured and consumed.

Kuldeep Jain, Founder and Managing Director of CleanMax, describes a market moving beyond cost arbitrage towards structural integration of clean energy. Demand from tyre manufacturers – long characterised by high, stable electricity loads – is now influencing both project design and procurement models, pushing developers towards hybrid and round-the-clock renewable solutions. 

Energy-intensive industries are increasingly prioritising renewable electricity to manage power costs and reduce operational emissions. Manufacturing sectors with continuous loads are particularly suited to long-term renewable procurement models such as group captive and open-access PPAs, which provide cost stability while supporting decarbonisation goals,” Jain says.

That demand is already translating into project pipelines. CleanMax’s collaboration with CEAT involves developing 59 MW of hybrid wind-solar capacity to supply renewable power to its Halol and Kanchipuram plants. Similarly, its engagement with Michelin includes an open-access solar power purchase agreement supporting operations at the company’s Chennai facility.

“These projects illustrate how large industrial consumers are integrating renewables into their long-term energy strategy. For instance, globally, the International Energy Agency has already noted that industrial electrification and renewable procurement will drive the next phase of the energy transition. Tyres are firmly in that wave,” Jain notes.

FROM INTERMITTENT SUPPLY TO ENGINEERED RELIABILITY

Tyre manufacturing presents a distinctive challenge for renewable integration. Plants operate continuous processes – mixing, curing and vulcanisation – that require stable baseload electricity and thermal energy. Traditional solar PPAs, while cost-effective, are inherently intermittent, limiting their suitability for such operations.

The industry is therefore evolving towards hybrid models that combine multiple renewable sources. “Hybrid projects are gaining traction because they smooth generation across the day, improving plant load factors,” Jain says. According to the International Renewable Energy Agency, such hybrid systems are among the fastest-scaling formats for industrial decarbonisation.

“As a result, the industry is moving beyond single-source solar PPAs towards wind-solar hybrid projects and open-access group captive models that provide higher plant load factors and more balanced generation profiles across the day. Wind-solar hybrid is increasingly seen as the most practical and efficient pathway to scale renewable penetration in continuous manufacturing environments,” Jain explains.

This shift reflects a broader reframing of renewables – not as intermittent substitutes for fossil fuel power but as engineered systems tailored to industrial demand curves. The emphasis is on aligning generation profiles with consumption patterns, rather than expecting operations to adapt to variable supply.

SECTOR-SPECIFIC DECARBONISATION PATHWAYS

Not all heavy industries decarbonise along the same trajectory. Jain draws a clear distinction between tyre manufacturing and sectors such as cement or steel, where process emissions form a significant share of the carbon footprint.

“If you step back, industries don’t decarbonise in the same way because they don’t consume energy in the same way. A tyre plant is largely powered by electricity. So if you clean up the electricity, you’ve already addressed a meaningful part of its emissions,” he says.

However, the challenge lies in reliability. “These are continuous operations. They don’t switch off when the sun sets or the wind drops. That’s why hybrid becomes important, as a way of shaping energy to demand,” Jain adds.

“In case of cement or steel, a significant portion of emissions comes from how the product itself is made. So the shift we’re seeing is subtle but important. It’s about redesigning the energy profile itself so that clean energy isn’t intermittent in theory but dependable in practice,” he continues.

The implication is that electrification-driven sectors such as tyre manufacturing can achieve faster decarbonisation gains through renewable procurement, provided supply reliability is addressed through hybridisation and system design.

ESG, PRODUCT STRATEGY AND COMPETITIVE POSITIONING

Renewable energy is also assuming a more strategic role within tyre companies’ ESG frameworks. What began as a cost-management exercise is increasingly tied to product innovation, sustainability reporting and global competitiveness.

“The conversation around renewable energy in the tyre industry has clearly evolved beyond cost optimisation. Many manufacturers are increasingly integrating renewable power into their broader ESG strategies and supply-chain decarbonisation commitments, particularly as global automotive OEMs push for lower-carbon sourcing across the value chain,” Jain says.

This transition is evident at the product level. CEAT’s launch of its SecuraDrive CIRCL tyre – produced with up to 90 percent sustainable materials – signals how manufacturers are aligning product design with sustainability objectives.

“Renewable electricity procurement helps reduce Scope 2 emissions and supports the development of lower-carbon products, which is becoming an important factor in both sustainability reporting and global competitiveness. As a result, renewable energy is now seen not only as a cost-management tool but also as a strategic lever for product decarbonisation and ESG positioning,” Jain explains.

TECHNOLOGY MIX AND OPERATIONAL ALIGNMENT

From a systems perspective, no single technology provides a complete solution. CleanMax advocates a portfolio approach that combines generation assets with digital tools and flexible contracting structures.

“A portfolio approach works best. For manufacturing operations with steady electricity demand, hybrid renewable systems combining solar and wind have proven effective, as the complementary generation profiles improve overall availability and plant load factors,” Jain says.

Digital energy management platforms play a supporting role by optimising dispatch and aligning supply with consumption patterns. Flexible procurement structures, including open-access and group captive models, further enhance adaptability across sites and regulatory regimes.

“In practice, hybrid setups combining solar and wind have proven effective because they smooth generation across the day and improve overall availability. That’s what makes renewable power usable at scale,” Jain adds.

The CEAT and Michelin projects exemplify this approach, integrating multiple procurement pathways – onsite solar, offsite generation and open-access PPAs – to increase renewable penetration without compromising operational stability.

POLICY VARIABILITY AND MULTI-LOCATION STRATEGIES

India’s regulatory landscape remains heterogeneous, with state-level policies shaping the feasibility and economics of renewable procurement. For tyre manufacturers operating across multiple locations, this creates both complexity and opportunity.

“Overall, the ecosystem is steadily evolving to support higher renewable penetration practically. Open-access mechanisms are becoming more aligned with industrial needs. Renewable procurement is naturally becoming more location-specific,” Jain says.

Different state frameworks enable companies to tailor their energy mix – combining onsite solar with offsite wind or solar depending on regional resource availability and regulatory incentives.

“In practice, this leads to more balanced and resilient energy portfolios. This is also where developers with experience across markets can add value by structuring solutions that are aligned to each site’s load profile, regulatory context and long-term cost objectives, rather than taking a one-size-fits-all approach,” Jain explains.

GLOBAL SUPPLY CHAINS AND RISING EXPECTATIONS

Pressure from global automotive OEMs is accelerating the adoption of renewable energy in India’s tyre sector. As manufacturers integrate more deeply into international supply chains, emissions performance is becoming a criterion for sourcing decisions.

“As tyre manufacturers become more integrated with global OEM supply chains, expectations around emissions are becoming more defined. Renewable electricity is one of the more immediate ways to address this, especially for Scope 2 emissions,” Jain says.

“What we’re seeing is more about alignment – companies are adapting their energy mix to stay relevant in global markets, where sustainability is increasingly part of how sourcing decisions are made,” Jain says.

This dynamic is likely to intensify as OEMs tighten decarbonisation targets and extend accountability across their value chains, reinforcing the role of renewable energy in industrial competitiveness.

THE NEXT FRONTIER: TRACEABILITY AND CARBON MARKETS

As companies move towards net-zero targets, the focus is broadening beyond direct emissions to include value-chain impacts and verification mechanisms.

“Instruments such as renewable energy certificates and carbon markets help companies transparently account for the renewable electricity they procure. At the same time, there is growing focus on Scope 3 reporting as manufacturers work to address emissions across their broader value chains and align with global supply-chain decarbonisation expectations,” Jain says.

Traceability – ensuring that renewable energy claims are verifiable and auditable – is expected to become increasingly important, particularly for export-oriented manufacturers facing stringent disclosure requirements.

A DECADE OUTLOOK: ACHIEVABLE, BUT CONDITIONAL

Looking ahead, Jain is cautiously optimistic about the pace of renewable adoption in India’s tyre manufacturing sector. The fundamentals – declining costs, expanding capacity and supportive policy evolution – are largely in place.

“Over the next decade, higher renewable penetration in tyre manufacturing is well within reach, especially as clean power availability continues to expand. For electricity-led operations, increasing the share of renewable energy is already a practical pathway, not a distant target,” he says.

However, execution will hinge on system-level factors. “What will make the difference is how reliably this power can be integrated at scale – through consistent open-access frameworks, stronger grid alignment, and wider use of hybrid solutions that better match continuous industrial demand,” Jain says.

The trajectory is clear: renewable energy in tyre manufacturing is transitioning from opportunistic adoption to structural integration. For developers such as CleanMax, the challenge – and opportunity – lies in engineering solutions that convert intermittent resources into dependable industrial infrastructure.

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Wallace Instruments, a globally recognised leader in rubber testing equipment, has expanded its United Kingdom-manufactured specimen preparation lineup with the launch of the WAS3 Pneumatic Cutting Press. The new device joins the company’s range of rubber testing equipment.

Unlike manual cutting methods, pneumatic systems apply consistent force on every cycle, eliminating operator fatigue and variability. Poorly prepared specimens with uneven edges or internal stress can compromise test accuracy, while the pneumatic approach also reduces repetitive physical strain, supporting technician wellbeing during long production runs.

The WAS3 prioritises safe single-operator use through a two-button activation system requiring both buttons to be pressed within half a second, preventing any hand contact with the cutting area. Additional three-sided protective guards further enhance operational safety.

Delivering 15 kN of cutting force, the press easily cuts through 10-mm thick, 95 Shore A rubber sheet using five bar of filtered air pressure. It works with existing Wallace cutting dies, so laboratories can integrate the unit without replacing current tooling, and its compact footprint suits both lab and production environments.

Chris Norval, Managing Director, Wallace Instruments, said, "Specimen preparation is the foundation of accurate rubber testing. With the WAS3, we focused on practical safety, dependable cutting performance and drop-in compatibility. Labs get a compact pneumatic press that fits the air lines already in place, uses their current Wallace dies and delivers consistent results for every operator – because when specimen quality is controlled, you can have confidence in the results that follow."

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DUNLOP (company name: Sumitomo Rubber Industries, Ltd.) has teamed up with Fujitsu Limited to create an artificial intelligence (AI) surrogate model that predicts tyre performance rapidly and with high precision. The breakthrough was validated in a proof of concept tied to DUNLOP’s digital transformation strategy. When applied to tyre deformation upon road contact, the technology slashed analysis time by 90 percent, from 45 minutes to just 5 minutes while processing nearly 600,000 mesh elements.

Based on these results, both firms will build a design support tool, aiming for deployment at DUNLOP by April 2027. The system runs on FUJITSU MONAKA, a next-generation energy efficient Arm-based CPU.

Tyre design typically relies on finite element method (FEM) analysis, where finer mesh grids boost accuracy but increase calculation time and costs. To tackle this, the partners developed an AI surrogate model that solves FEM equations using past data. The model, based on the Graph Neural Network algorithm, predicted contact shape with 87.7 percent accuracy, enabling faster decisions and lower costs.

Select findings will be shared at the 31st Computational Engineering Conference starting 3 June 2026. By December 2026, both companies will test the model on a FUJITSU MONAKA prototype to refine speed and power use.

Under its long-term strategy R.I.S.E. 2035, DUNLOP seeks to provide new experiential value from rubber. Through this co creation, the tyre maker will enhance its analytical technologies and strengthen innovation. Fujitsu will promote this approach across large scale FEM analysis in automotive and other manufacturing sectors, contributing to carbon neutrality via an AI platform combining FUJITSU MONAKA and GNN.

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Starrett-Bytewise has appointed GL Inspect GmbH as its new European sales representative. The German firm, led by Christian Lantzsch and based in Hargesheim, will oversee regional operations. The partnership aims to provide local expertise for demanding measurement challenges across tyre plants, steel mills and extrusion lines.

Lantzsch and the GL Inspect team bring a sophisticated understanding of non-contact metrology. Their technical background aligns with the diverse industrial sectors served by Starrett-Bytewise, ensuring that European customers receive support tailored to specific materials and production environments. The collaboration strengthens local technical knowledge and on-site application assistance.

Under this agreement, European customers gain direct access to local consultations and expanded on-site evaluations led by Lantzsch’s team. Laser measurement solutions can be better integrated into individual production lines. The partnership also streamlines communication and support, building on existing European infrastructure to enable seamless transitions to automated in-line inspection.

The appointment represents a significant investment in European infrastructure. Having GL Inspect on the ground shortens the distance between Starrett-Bytewise’s U.S. engineering team and local factory floors. Faster application assessments, more frequent site visits and industry-specific language support are key outcomes of the new arrangement.

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