The tyre is an amazing example of something that has served its purpose for more than a century with no drastic functional changes but has yet undergone constant improvement and sometimes fundamental structural changes. Materials have changed from leather to natural rubber, and then to ever-developing compounds of natural and synthetic rubber, as well as chemicals. Structurally, the largest change has been from bias to radial casing construction, and while some tyre products are now largely only radial tyres – passenger car tyres, for example – other vehicle segments still consume a large quantity of bias tyres; in some regions of the world more than others.

While the equipment required to produce bias tyres is fairly simple, and the costs of establishing a production line therefore relatively manageable – roughly speaking it’s a textile production line combined with vulcanizing in simple 2-part moulds – the costs of establishing a radial tyre production line are massive. From rubber calenders to radial steel belt production and angle cutting over bead ring building and green tyre building drums, until finally curing in 8-segment moulds – and many more steps and essential equipment not mentioned in between. Each machine and process is as important as the next, and only the most skilled management of the entyre production flow can ensure that a quality product comes out at the end. So, needless to say, many of the quality improvements of the past decades have come from improving production equipment and knowledge as much as from improving tread designs and rubber compounds.

Chinese factories

Further, as many tyre production equipment manufacturers have expanded to supply all over the world, many production lines have become much more similar to each other as they approach the worldwide optimal standard for balancing production costs and quality. I won’t mention any specific manufacturer names here, but anyone who has visited a tyre factory in China will have had an employee guide proudly point out that they use only the best equipment from manufacturers in the Netherlands, Japan, Germany, and the USA. I’ve always been tempted to ask if the hammer is more important or the person who wields it, but I digress. The fact is that most Chinese factories have also improved drastically in terms of management and comply with IATF 16949 standards to ensure consistently high-quality levels and constantly reduce defects. The main driver and reason for the current standards is the reduction of manual work stations and a large manual labour workforce to largely automatic or at least semi-automatic machinery, reducing the manual labourers to employees simply moving materials or finished products from one place to another. Over time, these will also be made redundant, as machines will also handle this part.

The question remaining is just how factories located in low-wage countries will keep competitive as the necessary equipment costs the same all over the globe, and less hands are needed to operate the massive production lines. When the lines all over the world only need core staff to monitor and make technical adjustments and maintenance work, the difference in the product cost structure can only come from land and building use, logistics and handling costs, as well as water, heating, and electricity fees. Especially the latter, utility fees, probably soon make up the most important factory when it comes to differentiating tyre cost structures across the world.

Global supply

What will this mean for the global tyre supply? Most likely, it will be good news for the environment, as it won’t make as much sense as previously to send products across the globe, because the transportation costs will make the products more expensive than locally produced ones – regardless of production country. Given that all countries play fair, that is, so maybe I should say in a perfect world. There is no doubt that some countries favour their large factories with subsidies or tax rebates more than the developed countries do. But, with the recent massive rise in sea freight charges caused by the pandemic, and amplified by the Ever Given blocking the Suez Canal, the tables could be turned faster than anyone expected. Just until a month ago we all expected the extremely high sea freight levels from Asia to the rest of the world to last just a few months, now the carriers expect that we won’t see normalization – and thereby decreasing rates – again until 2024. As tyre prices from low-cost manufacturing countries have been gradually closing the gap to second tier brands over the past decade (and quality levels have followed suit and in rare cases even surpassed them), they have now very suddenly lost all competitiveness when solely looking at pricing. Surely, it has been the strategy of all these manufacturers for many years to ultimately surpass the competition on quality and performance, but not before surpassing them on price.

So, what will happen now? Nobody knows, but it will be equally interesting and nerve-wracking to follow. For the tyre building machine manufacturers, the dilemma has grown bigger than ever before; should they continue to develop better machines, as they risk killing their clients by doing do? There’s a very narrow path to tread between staying competitive against other machine manufacturers and sustaining the financial health of one’s own clients. (TT)

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The Yokohama Rubber Co., Ltd. has been selected as the official tyre supplier for the groundbreaking FIA Extreme H World Cup, the world's first hydrogen-powered motorsport series. The company will supply its GEOLANDAR brand of tyres for the championship, which is scheduled to commence next month in Saudi Arabia. The company will also continue to supply GEOLANDAR tyres for the Extreme E off-road electric vehicle series, which holds its final event on 4–5 October in Saudi Arabia.

Central to both the Extreme H and Extreme E series is a shared mission to advance sustainability and equality. The championships serve as dynamic platforms to promote environmental awareness and demonstrate cutting-edge technologies while also enforcing a strict mandate for gender parity by requiring each team to field one male and one female driver. The Extreme H series will feature eight international teams operating the Pioneer 25, a cutting-edge hydrogen fuel cell vehicle capable of generating 550 horsepower and accelerating from 0 to 100 kmph in 4.5 seconds. The global significance of this new championship is expected to draw a worldwide television audience across multiple continents.

As the predecessor to Extreme H, the Extreme E series utilised the high-performance all-electric Odyssey 21 vehicle. All teams competing in the new hydrogen series will also participate in this final Extreme E event, marking the conclusion of the electric championship as it transitions towards a hydrogen future.

In alignment with the environmental principles of these series, Yokohama Rubber will provide a specially developed prototype tyre based on its GEOLANDAR X-AT model. This tyre has been engineered with a significantly increased ratio of sustainable materials, comprising 38 percent renewable and recycled content. It has also been fortified with enhanced durability characteristics to withstand the unique demands of heavy hydrogen-powered and electric off-road racing vehicles.

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Hankook Tire is advancing its future mobility leadership through strategic open innovation and collaborative design projects. This effort was showcased at the company’s recent Design Innovation Day 2025, held at its Pangyo Technoplex headquarters. The event serves as a platform to present new solutions integrating sustainability, innovation and design while reinforcing partnerships with global technology leaders.

A major focus was the unveiling of two key outcomes from Hankook’s ongoing Design Innovation Project. The first was ‘Sustainable Concept Tyre’, an embodiment of the company’s ESG vision. Developed using advanced 3D printing technology, it is constructed from renewable and recycled materials. Its distinctive organic design was realised in collaboration with Harvestance using specialised engineering software.

The second reveal was the WheelBot 2, a multi-directional mobility platform developed with robotics startup CALMANTECH. This advanced robotic wheel system, equipped with tri-axial spherical tyres, demonstrates new possibilities for movement. Its potential was illustrated through a live demonstration of the PathCruizer, a two-seater pod concept powered by the WheelBot technology.

Beyond product reveals, the event highlighted Hankook’s commitment to knowledge sharing, featuring a presentation on 3D printing advancements from LG Electronics. These collaborations are central to Hankook’s strategy of strengthening its technology leadership. Since 2012, the company has partnered with world-renowned design universities and technology firms, consistently earning prestigious international design awards and solidifying the premium stature of its global brand.

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Indian tyre maker to pass full benefit of tax cuts to customers from 22 September

CEAT Limited said on Thursday it would reduce prices across its entire tyre range following the Indian government’s decision to cut goods and services tax (GST) rates on tyres, with the full benefit being passed on to customers.

The Mumbai-based tyre manufacturer said new prices would take effect from 22 September, covering commercial, agricultural, passenger vehicle and two-wheeler segments.

India’s 56th GST Council meeting approved significant reductions in tax rates for the tyre industry. GST on new pneumatic tyres was cut to 18% from 28%, whilst tractor tyres and tubes will attract a reduced rate of 5%.

“We thank the Government of India and the GST Council for their timely and progressive decision to rationalise tax rates in the tyre sector,” said Arnab Banerjee, Managing Director & CEO of CEAT Limited.

“The reduced GST slabs will greatly benefit the tyre industry and consumers alike. Not only will it lower the cost of owning and operating a vehicle for customers across various segments, but by making tyres more affordable to replace, it will also make our roads safer.”

Banerjee added the move would “spur formalisation and greater compliance, while also fostering sustainable growth in the sector.”

The GST rate cuts represent a significant policy shift for India’s automotive sector, where high taxation has been a longstanding concern for manufacturers and consumers.

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The Yokohama Rubber Co., Ltd. has been officially recognised as a DX Certified Business Operator by Japan's Ministry of Economy, Trade and Industry (METI). The designation, which was granted on 1 September 2025, identifies companies that are thoroughly prepared for digital transformation as outlined by the Digital Governance Code.

This certification acknowledges Yokohama Rubber's comprehensive strategy for digital transformation, which is built on three core objectives: advancing business strategy, contributing to sustainability and reinforcing its IT infrastructure. Central to this effort is the company's proprietary AI framework, HAICoLab (Humans and AI ColLaborate), which drives group-wide digital initiatives. These include improving productivity, innovating processes, developing digital talent and building a global cloud-based IT system. The certification confirms that the company's efforts not only meet METI's stringent criteria but also demonstrate appropriate disclosure of information to its stakeholders.

Moving forward, the company said it will continue to leverage data from its entire value chain to adapt to a dynamic business environment. The company aims to enhance customer value, pursue sustainable innovation and transform its corporate culture to strengthen its competitive position and ensure long-term growth.

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