Innovation is the key to long-term success for any industrial business, and for the countries where they operate. In this article, Mike Norman, CCO at VMI Holland, explains why protecting IP is a key priority. VMI Group, based in the Netherlands, with operations around the world, is an international leader for tyre building machines.

Long live innovation!

VMI is 75 years old, and no manufacturer stays successful for so many years without a serious commitment to innovation. In the past 20 years, VMI has rewritten the book on automated tyre building. We have done that by creating manufacturing platforms capable of constant evolution, and then adding new innovations and improvements, year by year.

VMI has built a lot of trust in the market as a result of this strategy. Our customers know we invest more than any other comparable business in original R&D, and we make sure that every new idea leads to practical benefit for them.

Our business is built upon our Intellectual Property: our IP. It is what enables us to help customers face their own challenges. We are proud of the innovations we create - and we will protect our IP and our customers’ interests, anywhere, anytime.

Innovation and collaboration

In our experience, innovators like working together. It is exciting and it is a creative experience. You help each other. You get to move, develop and grow faster. You listen to each other, learn from each other and make progress faster as a result.

In the world of tyre development, we know exactly what we bring to the market, and we also know the areas that belong exclusively to our customers. Our products and solutions help make manufacturing processes more efficient, precise, controlled, more easily managed and fully auditable. That is our area, and that is where our IP is focused.

Our customers define the materials, the compounds, their operational characteristics, the different tire constructions and do so by knowing how all of this connects to the expectations and requirements of the automotive industry. That is their territory and we recognise that.

Put their IP and ours together, however, and something exciting happens. The individual tyre manufacturers remain as different and distinctive as ever, but the tyre build process becomes faster, more flexible and efficient, the number of variants available grows and quality standards rise.  

In other words, our ability to innovate helps tyre manufacturers become the best they can be, and also helps them unlock maximum benefit from their own innovations. That is why tyre companies with strong IP of their own are drawn to VMI, because they know we add value to their business, while always maintaining confidentiality.

Why protecting IP matters

Innovation is the fuel that drives business success, and the fastest way to undermine a successful business is to steal and copy its IP. That discourages further investment, while taking away the profits needed for the future.

It also slows down progress for us all. If you cannot defend your own creativity and original thinking, then fewer innovations take place and fewer good ideas are available for customers to use. In the tyre industry, this means that good companies, which want to use the best equipment to achieve the highest quality results for themselves, will lose out.

What is the point in buying the most advanced technology if your less honest, less scrupulous competitor can buy a cheap copy and undercut you on price? And what if you are tempted to buy a cheap copy of the market-leading machine, yourself, just to cut costs? And then find it is not as good as its makers told you? After all, copyists sometimes do not understand what they are copying, which adds serious risk when you buy that kind of machine. It also means that its makers simply cannot give you the service support you need- because they do not know how!

Worse, what happens when the machines bought from a copyist turn out to have stolen IP in their design? And the courts order them to be seized without compensation?

But maybe the most important argument of all for defending other people’s IP is simple self-interest. What would any of us do if our own ideas and innovations are stolen, copied and used against us? We are all part of the same marketplace. We cannot defend our own IP and yet be careless about other people’s. We need to protect innovation and IP completely, end-to-end across the entire industry and in all countries. That is the only way to protect ourselves, as well.

Innovation within the Indian marketplace

So why does a discussion of IP matter to India, in particular? We think Indian manufacturing is at an important stage of development. Despite the problems caused by Covid-19, we see every sign that India will be going through a period of rapid manufacturing growth in the next decade. We expect to see Indian companies, in automotive and related industries, taking a higher proportion of the domestic market and building share overseas, as well.

We have seen this happen in other sectors, after all: in IT, service markets, telecom and pharmaceuticals. Now Indian companies are stepping-up to the challenge in automotive and other sectors, too. Foreign companies operating in the Indian market need to be clear about the contribution they can make. At VMI, we understand what is needed. We will bring the best IP in the world for tyre building, and will work with ambitious, innovative Indian companies to help them develop a global presence. To make that happen, we need to know that the law protects ours- and everyone else’s- IP.

We spoke to Chetan Chadha, a leading IP attorney in Gurgaon, and his view was clear. “The Indian Courts,” he tells us, “have a strong track record of enforcing Intellectual Property Rights, acting to protect patent holders against infringements both by foreign and local Indian offenders.” He cites the example of a series of patent infringement litigations in the telecommunications sector in 2013 and 2014.

“These were a series of high-profile Standard Essential Patent (SEP) litigations,” he recalls, “in which several companies, including companies of Indian and Chinese origin, were sued for infringement of 8 patents, and interim injunction was granted in favour of the Patentee, irrespective of the origin of the allegedly infringing companies. Eventually, damages and injunctions were granted against infringing companies alike, without any bias.”

This legal example set a clear precedent that India has utmost respect for Intellectual Property Rights and will strictly enforce patents in order to protect the integrity of the market and maintain confidence.

VMI has been filing patents in India since 2005 and we expect our presence to deepen and grow in the near future. India’s proud record of defending IP is one of the main reasons why we, along with so many other European companies, are eager to work and trade here.

In this, our 75^th anniversary year, let’s celebrate the potential for a prosperous and profitable future together, working together as innovators in a spirit of mutual respect.

ENDS

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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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VMI has announced that it will showcase multiple new automation solutions at The Tire Cologne, aimed at advancing the retreading process. Among the innovations is an automatic splice unit, which will be on display and available for short demonstrations at the event. VMI account manager Ronald Noppers is scheduled to present on automation in retreading on 11 June at 12:45.

The company is introducing the automatic splice unit and automatic recipe loading as initial steps towards greater industry automation. Designed for applying extruded hot cushion gum to buffed tire casings, the VMI RETRAXX system currently relies heavily on skilled manual labour, a resource that is becoming scarcer and more expensive. To address this, VMI introduced an automated wingformer setting upgrade for the RETRAXX in 2024, allowing operators to start an automatic cycle that positions the wingformers without manual intervention.

Key advantages of these automation solutions include reduced operator dependency and improved uniformity and product quality. VMI will be located in hall 7 at stand number C-041.

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MESNAC made a notable return to the Indian market by participating in the 2026 India Rubber Expo, held in Delhi from 7 to 10 April. After an eight-year absence from offline professional exhibitions in the country, the company presented its advanced machinery and intelligent manufacturing solutions. This participation highlighted its strong technical expertise and service capabilities within the rubber machinery sector while also signalling a renewed commitment to long-term growth and a deep-rooted presence in the region.

At the event, MESNAC’s Vice President, Wang Zhiming, and his team held productive discussions with representatives from several local tyre manufacturers, including long-established industry leaders and existing clients. These conversations focused on technical exchanges regarding core equipment. The company’s exhibition booth attracted nearly 100 professional visitors each day, which helped strengthen ties with long-term partners and facilitated in-depth technical dialogues with potential new collaborators.

Given the steady expansion of India’s tyre industry, MESNAC is dedicated to further strengthening its local market position through a focus on both technology and service. By supporting the sector’s continuous upgrade, the company aims to play a key role in the industry’s evolving landscape.

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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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