Astute Analytica, a global analytics and advisory company, has said in its latest report that the Japan tyre market is projected to hit market valuation of USD 33.59 billion by 2032, up from USD 14.78 billion in 2023, at a CAGR of 9.74 percent by the year 2032.

The report delves deep into the macros of Japan tyre market and highlights various factors influencing the current condition and shaping the future scenario, including the top drivers of the market, the top trends emerging out of it and also the top challenges faced by the Japan tyre market.

As per the report, increasing vehicle ownership rates and urban car dependency are the major factors influencing the demand for more tyres. This is followed by government regulations promoting road safety and mandatory tyre checks and advancements in tyre technology. All of these factors are driving consistent tyre market demand growth. The report further explains the role of growing focus on sustainability in providing significant opportunities for tyre manufacturers to align their products with environmental goals, which is evident from the fact that a total 25 million eco-friendly tyres were sold in 2023. Citing that over 500,000 smart tyres were sold in 2023, the report highlights the role of digitalisation and smart technologies, as well as integration of IoT, in the automotive sector.

The top trends, according to the report, are rising adoption of environmentally-friendly tyres, growing popularity of smart and connected tyres with embedded sensors for real-time performance monitoring and a shift towards online tyre retailing platforms. Among the top challenges faced by the Japan tyre market, according to the report, are the fluctuating raw material costs, intense competition among domestic and international tyre manufacturers and the ageing population affecting vehicle ownership trends and reducing overall tyre demand growth potential.

The report further highlights the expanding role of recycled tyres in Japan's automotive industry – at a CAGR of 10.82 percent – and how they are shaping the tyre market. Japan has a robust infrastructure of over 1,000 tyre recycling facilities nationwide and repurposes approximately 80 million tyres each year, which is further boosting the recycled tyre market, the report says. The report further explains that over 50 million recycled tyres with extended lifespans were produced due to the innovations in devulcanisation and pyrolysis, adding that more than 500 patents were filed for tyre recycling innovations as of 2023. This is not only helping economically but also contributing to Japan's goal of reducing carbon emissions, thereby positioning Japan as a leader in environmental responsibility within the automotive sector.

Among its key findings, the report notes that passenger vehicles are at the forefront of Japan's tyre market and the sector is poised to take up over 63 percent market share. Annual sales of passenger vehicles have surpassed 5 million units, according to the report, resulting in more than 60 million passenger tyres sold annually. Other factors noted by the report are the proliferation of hybrid and electric vehicles in Japan, which number over 2 million, and the rise of ride-sharing services, which account for more than 1 million vehicles.

The report also highlights the rising prominence of the 15–20-inch tyre segment in Japan's tyre market because of the popularity of SUVs and larger passenger vehicles that use these tyres. More than 20 million units are sold annually for this specific size category, says the report and adds that the motorsports industry has also influenced consumer trends. Another factor influencing the popularity of 15–20-inch tyres is the governmental infrastructure projects that have expanded and improved the road network in Japan and made the roads suitable for vehicles equipped with larger tyres.

Another important point highlighted in the report is that the highly consolidated Japanese tyre market is captured by the top six established players, namely Bridgestone Corporation, Sumitomo Rubber Industries, Yokohama Tyre, Toyo Tyre, Michelin and The Goodyear Tyre & Rubber Company, who command over 72.9 percent of the market share as of 2023. Elucidating further on this topic, the report says that Bridgestone Corporation alone controls over 29 percent of the Japanese tyre market due to its longstanding presence and reputation for high-quality products. Factors such as high capital investment requirements for manufacturing facilities, extensive research and development for advanced tyre technologies and strict regulatory standards are cited by the report as major challenges for new entrants to penetrate this highly consolidated market. Apart from this, brand reliability and quality also favour domestic companies with proven track records, the report adds.

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Apollo Tyres’ Chennai Plant has formalised a multi-institutional partnership through a Memorandum of Understanding (MoU) with five esteemed engineering colleges from Kerala, Odisha and Tamil Nadu. This strategic alliance is designed to fortify the nexus between industry and academia, with a focused objective of developing a robust, industry-ready talent pool to meet future sector demands. The collaboration represents a significant investment in the human capital pipeline, directly linking academic output with corporate needs.

The collaborating institutions in this forward-looking initiative are SASTRA University, SRM TRP Engineering College, JJ College Of Engineering & Technology, Ma'din Academy and Nilachal Polytechnic. The partnership’s framework encompasses a comprehensive suite of initiatives aimed at mutual development. For students, it provides a structured pathway to employment, including placement assurances during their final year and enhanced campus hiring opportunities. To bridge theoretical knowledge with practical application, the programme will facilitate organised industry visits to Apollo’s manufacturing facility, offering students firsthand exposure to modern production processes. Complementing this, a series of expert-led sessions, technical lectures and seminars will be delivered by in-house professionals from Apollo Tyres, ensuring the curriculum remains aligned with evolving industry practices.

This symbiotic engagement yields significant strategic benefits for all stakeholders. Students gain invaluable industry awareness and confidence, while academic institutions enhance their curriculum's practical relevance. For Apollo Tyres, the initiative enables the early identification and nurturing of prospective talent, effectively streamlining recruitment and fostering a positive perception of manufacturing careers.

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German chemicals group Wacker Chemie lowered its full-year outlook after third-quarter profit fell by nearly a quarter, hit by weak demand and intense competition from China.

The Munich-based company, which makes silicones and polysilicon for semiconductors and solar panels, reported earnings before interest, tax, depreciation and amortisation (EBITDA) of 112 million euros ($121.6 million) for the July-September period, down 23 percent from 145 million euros a year earlier.

Sales fell 6 percent to 1.34 billion euros from 1.43 billion euros, weighed down by lower prices and unfavourable currency effects.

The results were broadly in line with analyst expectations, which had forecast sales of 1.37 billion euros and EBITDA of 101 million euros, according to Vara Research.

Wacker swung to an operating loss of 20 million euros in the quarter, from a profit of 30 million euros a year ago, whilst net income turned negative to 82 million euros, compared with a profit of 34 million euros.

“The chemical industry is under pressure – worldwide, but in Europe in particular. The economic situation is tense, and market demand is weak. At the same time, the market environment is changing, and competitive pressure is high – especially from China. And this is something that we are experiencing at WACKER as well,” Chief Executive Christian Hartel said.

“Like many other companies, we had to lower our full-year forecast in the middle of this year. Even though we closed Q3 in line with market expectations, sales and earnings were again down year on year in almost all business divisions,” he said.

Wacker launched a comprehensive cost-cutting programme in October aimed at achieving significant savings in production and administration, with implementation planned to begin in the first quarter of 2026.

The company now expects full-year sales at the lower end of its previously forecast range of 5.5 billion to 5.9 billion euros, with EBITDA in the lower half of its 500 million to 700 million euro range. It also anticipates a negative net result for the year, significantly below the previous year.

The company’s silicones division, its most significant business, saw sales decline 7 percent to 673 million euros, whilst EBITDA fell 19 percent to 86 million euros. The polysilicon unit, which serves both solar and semiconductor markets, reported a 40 percent drop in EBITDA to 18 million euros, as low prices and exchange-rate effects offset strong hyperpure polysilicon performance in semiconductors.

Wacker’s workforce declined to 16,616 employees at the end of September from 16,724 three months earlier.

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Finnish tyre manufacturer Nokian Tyres said it would cut 80 permanent positions and temporarily lay off about 650 workers as part of measures to improve financial performance and operational efficiency.

The company has begun personnel negotiations affecting roughly 1,700 permanent white-collar positions across its global operations, including group functions and all business units.

The temporary layoffs will affect blue-collar and white-collar staff at passenger car and heavy tyre production facilities in Nokia, Finland, for up to 90 days per person. These measures could be implemented by the end of 2026.

The permanent job cuts, targeting white-collar roles, may take effect by late 2025, the company said.

Nokian Tyres employed approximately 4,400 people worldwide at the end of September, with 2,045 staff based in Finland.

The negotiations will commence immediately in line with local labour legislation in each country where the company operates.

The announcement comes as tyre manufacturers face pressure from volatile raw material costs and shifting demand patterns in key markets.

Nokian Tyres, known for its winter tyres and premium products, has been restructuring its operations following geopolitical challenges that affected its Russian production and sales.

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Capitalising on a period of significant growth, Nexen Tire is strategically introducing two new passenger tyres, the N’Priz S and the N’Fera Sport, through a comprehensive two-stage launch. This initiative represents one of the company's most substantial product introductions, designed to engage key audiences from media to consumers through immersive, hands-on experiences.

The launch commenced earlier this fall with an exclusive Ride N’ Drive event at the Illinois Autobahn Country Club. There, participants had the opportunity to personally evaluate the new tyres across a variety of driving conditions, including autocross challenges and highway simulations. This direct testing allowed them to assess critical performance attributes such as handling and comfort while also facilitating valuable interaction with Nexen’s own engineering and product development teams.

The campaign now advances to a broader stage, moving to the 2025 SEMA Show in Las Vegas. Nexen Tire America will host an extensive activation featuring a 240-foot booth where the N’Priz S and N’Fera Sport will be prominently displayed. The exhibit will include original equipment vehicles, motorsports trucks competing on Nexen tires and a dynamic schedule of live discussions with company leadership, technical experts and brand partners on the specially created Nexen Live stage. This platform will also serve to showcase the brand's latest progress in areas like tyre design simulation and electric vehicle development.

These two tyres are engineered to meet the distinct needs of different drivers, thereby broadening Nexen’s market reach. The N’Priz S is a grand-touring all-season tyre that is also EV-compatible, focusing on delivering a quiet, comfortable ride and reliable traction for daily commuting and long-distance travel. It incorporates advanced AI performance prediction and virtual simulation technology to optimise tread design and reduce cabin noise, alongside a specialised rubber compound aimed at enhancing tread longevity and overall efficiency.

In contrast, the N’Fera Sport is an ultra-high-performance summer tyre built for drivers seeking precision steering response and superior control in warm conditions. Its design prioritises direct feedback, confident wet-road braking and stability while still maintaining usability for spirited street driving. The N’Fera Sport is scheduled to arrive at dealers this fall, with the N’Priz S following in early 2026. Together, these launches underscore Nexen’s commitment to technological innovation and creating meaningful connections with the driving public.

Brian YoonSeok Han, CEO, Nexen Tire America, said, “Nexen Tire’s growth in the US is being fuelled by innovation and experience. We wanted people to feel what sets these new tyres apart, including how they handle, how they perform and how they represent our continued commitment to excellence. Ride N’ Drive gave us that direct connection with our partners, and now SEMA allows us to share that story on a global stage.”

Theresa Kapper, Director of Marketing for Nexen Tire America, said, “Launching the N’Priz S and N’Fera Sport through both Ride N' Drive and SEMA us to connect every piece of our story, from innovation and testing to excitement and scale. It’s about showing not only what these products can do, but what Nexen stands for as a brand. This rollout reflects the growth, energy and ambition driving Nexen Tire forward in the US market.”

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