Consumer demand never drops off

How do you view the changes happening in tyre retailing, and its future course into a digital world?

I was born and raised in the tyre industry. My dad had a wholesale company along with 13 retail locations so I had the opportunity to work on the wholesale and retail side. Retailers have always faced challenges, whether it be size proliferation where you look back 25 to 30 years ago where 80% of the market was dominated by 10 sizes while today 80% market is dominated by 250 plus sizes. That poses challenges that retailers have to manage because it’s not in their domain, it’s all about tyres and sizes and it’s their specialty. 

The biggest challenge that I see retailers being faced with now is the new digital age. It’s out of their comfort zone! They have to rely on marketing themselves through social media platforms and Geofencing. So now retailers have to sit down and think of how they can be different and how can they attract an audience and bring people through the door, rather than how it was before. This is an aspect of the business that is out of their comfort zone. Many do not understand it and have to rely on third party software’s or consultants. The market structure in the US is still predominately driven by independent tyre retailers, where over 65% of the industry is run by ‘Mom and Pop’ shops. Everybody wants to think about the large chains but the bulk of the business is by these independent operators, and they’re competing against these Giants that are trying to gain that customer base. 

What strategies does TGI adopt in the current changing business environment?  

Size proliferation is a big driver and one of the things that benefits companies such as us Tire Group International, is that we are a large wholesaler with large inventories & large warehouses. The reason for that is we have to stock a lot of tyres because retailers no longer have the luxury to stock tyres. They may have financial constraints, space constraints, etc , to be able to stock all the different sizes in order to service whatever car is coming through one of their doors. So, they have to rely on wholesalers like us to offer them a good solid product range. It all depends on the type of consumer coming in. Once that is satisfied then you have to meet the requirement of getting there on a timely manner to get them those tyres.

One of the things that we have been able to do is to increase the service side of our business. It's really been changing our business. It’s not about just providing tyre support. You have to have great customer service having a great relationship with your customers and being able to deliver to them more than three times a day in-order to offer what they call ‘Hot Shot’ delivery, where you get your tyres within 30 to 60 minutes to the retail location. They are heavily relying on that supply chain to be able to satisfy their retail customers.  So as a part of our strategy to bring that all together and meet the needs of today’s market, we have opened up additional smaller distribution centers so we can service regional locations as opposed to having to drive from our main hub to one of our farthest customers almost three hours away. Opening up a location closer to customers has now given us the opportunity to deliver a customer a 30 to 45-minute delivery window rather than having to wait almost a day for delivery. In Latin America which we have invested in, single shop operators and multi branded stores are very prevalent and they rely on fast service and getting tyres to customers in a timely manner and that is something that we will continue to push on.

How much has the pandemic and its impact forced you into bringing in new changes?

The pandemic has taught us many things. Most importantly is has taught us how to lean on our digital platforms and software systems that we’ve been developing over the years. Being forced to use them more and other digital platforms has taught us a lot. Video calling has been a great tool to showcase our product line to dealers from all across. It has definitely opened our eyes to the use of technology and how important it is to have the right technology in the workplace. We felt the first impact of the pandemic when I got a call from our VP of Sales asking if one of our dealers could get a 30-60 stay on his trade receivables as he was being forced to shut down due to having to adhere to CDC guidelines. That was the start. A lot of our customers were asking for more time to sort out and figure out what was really going to happen. The pandemic was affecting all of us and this solidarity came out from everyone. People were very accommodating and understood the situation.

Surprisingly consumer demand never dropped off. For most, if you had a job, you continued to have your revenue stream coming in, but you didn’t go out to eat 2-3 times a week, you weren’t spending money on gas, on a vacation, or going out. You had to stay at home, and this led to consumers having more spending power and wanting to travel locally. Rather than air travel, people started opting for more road trips and so tyre purchases which may have been a faraway thought, now became a front and center and customers had the discretionary income for it.

Manufacturing plants were shutting down but consumer demand never dropped. These plants tried to come back but with workers going back to their hometowns and not being able to travel back, there was suddenly this supply gap in the industry that started to drive the price up but demand kept increasing. Everyone thought that consumers were not going to buy tyres or spend much on them but it was the complete opposite. Even today demand is extremely strong and supply has not caught up with it. Over the last couple of years, we have seen retailers go thought a price decline, but with the market demand increasing they are going through a price incline which is good.

What is your take on online retailing? What are its advantages as well as disadvantages?

We divide our business into many units and the online retail sector is one that has taken off in the last 3-4 years. It is the wave of the future as more and more things become automated and we adopt a ‘buying everything online’ type of world. The challenge with tyres is, you cannot just click and get them to your house, but you have to get them installed. That creates the challenge which people are trying to meet, whereby coupling the service of buying online with mobile service via appointments to get the tyres fitted. These are the challenges faced in the online sector but it is by far the largest growing sector. The online space is the first place where customers go to find out when they should buy a new tyre, what size they need and see what their options are. The challenge is, how do you put your product in front of a consumer or how can you get that consumer into your virtual door. We service a lot of B2B platforms where customers can place their orders and we ship those orders directly to the consumer. We started doing this in 2017 and this has grown by over 400% year over year.

What are the challenges in retailing multi-brand products?

Back in the days there were only single branded tyre retailers because at that time there were only limited tyre sizes. But now with so many tyres sizes available in a particular spectrum, even if you wanted to be a single brand retailer, you wouldn’t have all the tyre sizes that you would need to be able to service every consumer’s needs. This forces you to become a multi brand outlet. It has its own challenges. No particular tyre can be branded as the best as it’s a subjective decision and so as a retailer it depends on how you are going to market it. We as a retailer need to understand what are our objectives. How we tier our products in our portfolio matter.

Which segment of tyres is more in demand than others?

In the US market, with the new import restrictions and import duties on tyres from certain countries, the biggest challenge has come in the passenger and light truck segment. Tyres which were imported and that were once available at a certain price point are now more expensive because of the cost of the duties to import them. It is estimated that with the new duties imposed on tyres imported from Taiwan alone, there is about two and a half percent of the market share of the US that is now priced out of the market. So now there is a tremendous supply gap in the passenger and light truck segment because of this new import law and the duties that have been imposed. This also works as an opportunity for those who have inventory to increase the price a bit. Passenger and light truck segment is where the demand is more but trying to secure product for that segment is now a challenge.

Do customers demand any specific features for the tyres they seek?

For the vast majority of our consumers, the main question in their mind is pricing. The second question is how good is your cheapest tyre. It’s always a mental game of price for quality. Most consumers don’t know a lot about tyres, and most of the time, the lower priced tyres are from brands that they’ve never heard off. Consumers put a lot of trust in the retailer as far as quality vs price go. From a retail side, bridging the gap from price to quality as in safety,is crucial. On the wholesale side, it’s very different. We wholesale and buy tyres on the open market and that’s where competition comes in. Profit margins and pricing plays a big part, bridging the gap between the cost, quality, exclusivity make a difference.

For the most part, general consumers don’t ask for specifics about a particular tyre, like the kind of grip or longevity it offers. But you get specific consumers who are performance oriented. An educated consumers will ask more questions about the benefits each tyre brings. Top US publications in the US ran a survey last year and about less than 20% of the consumers we get come in well informed and are looking for specific features. As per a survey done here in the USA, 80% of the time, a consumer walking in to a retail tyre shop, will buy a tyre that the counter person recommends. Customers also look at what tyre they have already on their car, and feel that those tyres served them well, but according to the survey, customers only left buying the same brand of tyres 30% of the time. 70% of the time, customers bought the tyre that the counter person recommended. So there’s a lot of power in what the counter person recommends.

What is your take on tyre manufacturers doing their own retailing? Does that affect your business?

The first here in the US to get into that was Michelin. They developed their own online platform and then Goodyear and a lot of the Tier1 manufacturers followed. But some have taken a step back. The channel disruption it was creating was more a drag on their business than a benefit. They did create a MAP pricing (Manufacturers Authorised Price). This way they wanted to make sure that their tyres were being sold at the same price across platforms and dealerships. But by setting a ceiling price on a tyre, you’re also setting a ceiling on how much a shop or tyre channel can make. Whereas if I’m selling an in-expensive brand of tyre, I can buy at my cost point and the retailer can sell it at their cost point where both make a profit margin.

There are a lot of dynamics at play. The younger the consumer becomes, when they start buying tyres, the more they’re going to look for online purchasing. The challenge is a retailer’s consumer is becoming younger and becoming more fleet driven with the likes of Uber, Lyft, etc. These fleet buisnesses are becoming more of our consumer base than an individual car owner. The old ways of going to a tyre shop and talking to the guy, having a cup of coffee and talking about tyres is over, the younger generation of buyers want to buy everything online. This is where online providers are trying to bridge the gap between product and service, as you need specialized service as far as tyres go. Automated tyre installation bays is being worked on and I think that will be the future. (TT)

Retreading Hangs In Balance Over Regulatory Conundrum

A population of over 1.4 billion people catapulting into the world’s third largest automobile market with four million trucks plying across a road network of 6.3 million kilometres supported by a USD 13.4 billion tyre market and a mining sector contributing around 2–2.5 percent of the country’s GDP demonstrate the strength of India’s automobile, freight and tyre sectors.

The story doesn’t end there as the Central Government adopts a strategic approach on reducing carbon emissions across these verticals, especially automobile and tyres, with targets such as the Net Zero Carbon Emissions by 2070, battery electric vehicles target by 2030, zero-emission truck corridors, Extended Producer Responsibility for the tyre sector; the list just goes on.

Amidst all such statistics and targets, a silent spectator remains the old and varied sector of tyre retreading. In a recent news story reported by Tyre Trends, the Indian Tyre Technical Advisory Committee (ITTAC) had made a proposal to Tyre Retreading Education Association (TREA) for mandating certain standards that will improve the quality of retreads.  ITTAC has made recommendations to the BIS committee. TREA is part of the same committee. ITTAC and TREA are recommending different standards.

These standards included BIS retread standards, namely IS 15725, IS 15753, IS 15524 and IS 9168. The ITTAC had partially aligned Indian requirements with ECE R109, the European regulatory benchmark.

In a reply to the proposal, which was accessed by Tyre Trends, TREA urged the Indian Tyre Technical Advisory Committee to seek a deferment or non-applicability of BIS standard IS 15704:2018 for retreaded commercial vehicle tyres, warning that mandatory enforcement could cripple the sector.

In the letter, TREA argued that IS 15704:2018 is largely modelled on new tyre manufacturing norms and is technically unsuitable for retreading, which is a restoration and recycling process.

The standard mandates advanced laboratory tests such as spectrometer-based rubber analysis, endurance testing and compound uniformity checks, requirements that most retreading units, particularly small and medium enterprises, are not equipped to meet

The association highlighted that even large retreaders lack the infrastructure and skilled manpower needed for BIS-grade testing, while the sheer number of retreading units would make inspections and certifications operationally unmanageable for regulators.

TREA warned that compliance costs linked to machinery upgrades, audits and quality control could force 70–80 percent of units to shut down, leading to job losses, higher fleet operating costs and adverse environmental outcomes due to reduced recycling

Instead, TREA proposed that BIS prioritise retreading-specific standards such as IS 13531 and IS 15524, which focus on materials, process control, safety and quality consistency.

The body has also called for a phased transition roadmap, MSME support and industry training before any stricter norms are enforced, stressing that abrupt implementation would undermine the sector’s role in India’s circular economy.

The conundrum

India has a total of 36 administrative divisions comprising 28 states and 8 union territories. The tyre retreading sector has been continuously supporting circularity goals since the early 1970s across the world’s largest economy without getting mainstream recognition.

Even after five decades in service, the industry battles different bottlenecks including fragmentation, manpower shortage, tax pressures brought about by the recent GST revisions and now the implementation of such standards, just to name a few.

The sole practice that can simultaneously reduce carbon emissions from tyres and extend tyre life is assumed the nemesis of an ‘infamous and dangerous practice’ in some states of the country.

However, the industry has been drawing its techniques and quality parameters from the world’s oldest retreading economy, Europe.

“Big retreaders in India already have the necessary processes in place that conform to IS 15524 standards. However, as the standard is not yet mandated, we have voiced support for it because it is process-oriented and outlines how retreading should be carried out, including buffing and building procedures,” said TREA Chairman Karun Sanghi.

He added, “This standard focuses on how the work is done rather than imposing product-level testing that cannot be practically implemented. The current debate on IS 15704 stems from it being fundamentally incompatible. The standard includes requirements such as sidewall marking and destructive testing of retreaded tyres, which are impractical in a retreading environment where each tyre differs in brand, size, application and usage history,” he added.

Destructive testing, he argued, assumes uniform batch sizes. In retreading, where every casing is unique, testing even a single tyre would mean destroying finished products without yielding representative results. Applying such a framework would effectively require the destruction of every tyre in a batch, making compliance unviable.

“We have submitted our response to ITTAC and are awaiting feedback from the committee. We remain open to continued dialogue and will engage further once the committee responds to our submission,” said Sanghi.

According to him, a typical retreader processes about 300 tyres a month across multiple brands including MRF, JK Tyre, Apollo and Michelin and applications ranging from buses and trucks to mining vehicles. These casings vary widely in load cycles, operating conditions and duty patterns, often across several models from the same manufacturer.

The committee has cited European standard ECE R109, but Sanghi points to structural differences: “Europe is a global retreading hub where tyre manufacturers such as Michelin and Bridgestone dominate operations, collect their own tyres, retread them and return them to fleets, making batch-based destructive testing relevant. A similar model exists in US, where large tyre companies lead retreading and largely self-regulate without a single overarching standard. The Indian scenario is different, especially with a fragmented market.”

He stressed that the industry is not opposed to standards but to those that cannot be practically applied, warning that adopting European manufacturing-oriented norms without accounting for India’s market structure and operating realities would be counter-productive.

The debate is no longer about whether standards are needed but whether they are fit for purpose. Without accounting for India’s fragmented retreading ecosystem, enforcing impractical norms could dismantle a circular industry in the name of compliance.

TGL Season 2 Kicks Off With Hankook As Founding And Official Tire Partner

TGL Season 2 Kicks Off With Hankook As Founding And Official Tire Partner

The second season of TGL Presented by SoFi, where Hankook Tire serves as the Founding and Official Tire Partner, commenced on 28 December 2025. This innovative league, a venture of TMRW Sports with backing from icons like Tiger Woods and Rory McIlroy, represents a strategic alignment for Hankook, uniting two entities driven by technological advancement. The partnership provides a global platform to reinforce Hankook's premium brand positioning across North America and worldwide through extensive visibility during broadcasts and at the state-of-the-art SoFi Center in Florida.

This unique venue embodies the league's fusion of sport and technology, featuring a massive simulator with a dedicated ScreenZone and a dynamic GreenZone. This area, equipped with a turntable and over 600 actuators, meticulously replicates real-world golf conditions indoors, creating an immersive arena experience. The competition itself is fast-paced and engaging, with teams of PGA TOUR players competing in Triples and Singles sessions over 15 holes. Innovative elements like the point-doubling ‘Hammer’, real-time strategy via ‘Hot Mic’ and a Shot Clock ensure a dynamic spectacle for fans.

The season opener presented a compelling narrative as a rematch of the inaugural finals, pitting the undefeated Atlanta Drive GC, featuring Justin Thomas and Patrick Cantlay, against a determined New York Golf Club squad led by Matt Fitzpatrick and Xander Schauffele. This match set the tone for an intensive season running through March, where six teams and 24 top golfers will compete. For Hankook, this partnership is more than signage; it is an active engagement with a global community, delivering a distinctive brand experience that bridges cutting-edge mobility and sport for enthusiasts everywhere.

Dunlop Secures CDP ‘A List’ Recognition For Climate Change And Water Security

Dunlop Secures CDP ‘A List’ Recognition For Climate Change And Water Security

Dunlop (company name: Sumitomo Rubber Industries, Ltd.) has made its way to the annual A-List of CDP for climate change and water security. This premier designation, awarded for the first time to the company in the 2025 evaluation, recognises world-leading performance in transparency, risk management and environmental action. CDP’s annual assessment is a key benchmark for corporate sustainability across climate, water and forests.

This achievement stems from the Group’s integrated approach to material issues outlined in its corporate philosophy. It treats the interconnected challenges of climate change, biodiversity and the circular economy holistically, advancing concrete initiatives under its long-term ‘Driving Our Future’ sustainability policy.

On climate, the Group’s science-based emission reduction targets for 2030 are validated by the Science Based Targets initiative. Operational efforts include pioneering green hydrogen production at its Shirakawa Factory and developing tyres made entirely from sustainable materials by 2050. The company also works to reduce emissions across its supply chain, lowers tyre rolling resistance to improve vehicle fuel economy and extends product life through retreading.

For water security, the strategy is driven by localised risk assessments at global production sites. In seven facilities identified as high-risk, the goal is to achieve 100 percent wastewater recycling by 2050. Progress is already evident, with the company’s Thailand factory reaching full wastewater recycling in 2024.

These coordinated actions on multiple environmental fronts formed the basis for the Group’s simultaneous top-tier recognition in both critical categories from CDP.

Bridgestone Launches Co-Creation Initiative With Ethiopian Airlines Group

Bridgestone Launches Co-Creation Initiative With Ethiopian Airlines Group

Bridgestone Corporation has initiated a novel co-creation programme in partnership with Ethiopian Airlines and Ethiopian Airports, focused on enhancing aviation safety at Addis Ababa Bole International Airport. This marks Bridgestone’s first sustained three-way collaboration with both an airline and an airport authority, targeting the reduction of Foreign Object Debris on runways and taxiways to support safer and more reliable aircraft operations.

The project was prompted by tyre-related incidents linked to debris at the airport, which previously risked disrupting flight schedules. Leveraging its specialised system for inspecting used airline tyres and analysing debris data, Bridgestone assessed conditions at the hub and proposed a tailored action plan. The company provided continuous support by analysing debris distribution patterns, developing visual hazard maps, advising on efficient collection methods and conducting training to raise awareness among airport personnel.

These sustained efforts have yielded significant results, substantially lowering the rate of tyre damage caused by runway debris compared to levels before the collaboration began. This reduction has supported improved on-time performance for Ethiopian Airlines while advancing overall operational safety. Additionally, the initiative has encouraged greater use of retreaded tyres, promoting economic efficiency and environmental sustainability within the airline’s operations.

Looking ahead, Bridgestone and Ethiopian Airlines Group plan to deepen their co-creation efforts, aiming to generate further value for the aviation sector and broader society through continued innovation and partnership.

Retta Melaku, Chief Operating Officer, Ethiopian Airlines, said, "At Ethiopian Airlines, the safety of our passengers, employees and aircraft is a priority. We are pleased to collaborate with Bridgestone to further strengthen our efforts in reducing FOD at Addis Ababa Bole International Airport and ensure safe operations at the hub airport."

Getaneh Adera, Managing Director, Ethiopian Airports, said, "We remain fully committed to upholding the highest safety standards at Bole International Airport at all times. This significant achievement in reducing FOD is the result of our strong commitment for safe operations and close collaboration with Bridgestone. Through our co-creation activities, we are pleased to have realised safer operations with enhanced productivity and economic value."

Jean-Philippe Minet, Managing Director, Bridgestone Aircraft Tire (Europe) S.A., said, "By combining the learnings and insights from Ethiopian Airlines' operational issues with our analysis technology and know-how, we have deepened our co-creation to propose customised solutions. We are delighted to contribute to safe aircraft operations with peace of mind and to improved operational productivity through the co-creation of efficient FOD reduction on airport surfaces. Through further expansion and evolution of this solution, we will amplify the value of our ‘Dan-Totsu Products’, trust with our customers and value of the data for creating new value."